Do This First - Finance 001 for Techies
This is a digital garden post. A work in progress. I'm still shuffling words. Anywhere you see TKTKTKT it means I don't know what to put there yet. Come back and it'll be different, but the message will be the same.
401Ks and ROTH IRAs are the financial droids you've been looking for
I haven't decided on an intro yet. And, different ones work for different folks, so pick the one that works for you. Or, skip straight to the nitty gritty.
This post is for folks who are overwhelmed or procrastinating on figuring out their finances. It's a distillation of all the financial books I've read over the past 25 years with proof in the practical application that I've been doing for 20.
There's lots of nuancied advice out there. Often overwhelming. The key here is to get started.
You've heard that before. This time, I'm going talk walk you through the where what and when of how to do it.
I'm in a discord with a bunch of amazing designers, developers, and generally creative people. Some of us have been in the industry for decades. Others are just starting.
The topic turned to finance in a recent thread. Some folks in the earlier parts of their careers wondering what they should do and being overwhelmed by all the financial advice that's out there.
Theres so much of it and, like a lot of things, assumes you already have some knowledge of what's going on.
A good one is: https://www.daveramsey.com/dave-ramsey-7-baby-steps
But, that's incredibly hard to do. the thing about starting with the 401K is it's set it and forget it.
(Yeah, this is me telling you to do something different than a multi-millionare financial adviser)
But, his advice doesn't fit my brain.
If this fits your brain. This is the path to take.
TKTKT Satisficing - https://en.wikipedia.org/wiki/The_Paradox_of_Choice
This post is for you if any of the following are true
you don't yet have a 401K and/or a ROTH IRA
Techies and designers want *the** answer. The perfect solution. The one that sings and does all the things.
Unfortunately, that doesn't work with finances. There is no *one** answer.
Most of us:
weren't taught good financial habits, and
weren't presented good models because our parents and guardians weren't taught well either
Combine those impacts and we lock up. A low level fear creeps in that we'll do the wrong thing. We hate that.
There's good news though, my friends. I found a happy path:
Setup your 401K
You've heard that before. You've heard a thousand things before. But, there's no dev server to play with. No sketchbook to draft in. So, how do we find a solution amongst the noise? By finding existing systems that work.
After twenty years testing in production, I'm happy to report the system I put in place works phenomenally. The results so far look like this: