Just starting at 32 with wife and 3 kids.

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Just starting at 32 with wife and 3 kids.

AJ Holt
Member since 2020 · 1 post · 3 votes

Hello everyone! I discovered BP a few years ago but only really got invested back in September of 2021. I have read Set for Life and want to start working toward my FIRE goal. My question is: I am 32(starting late I know) with a wife and 3 kids. I make $62,400 annually and have no debt except for my mortgage which about 1.3 years old. I don't know the best place to start for myself and my family. 

Obviously saving is important but right now in our budget with school costs, expenses, and food, I can only swing about $500/month that I put into a ROTH IRA account. We have $4500 in our banks savings account for emergencies. I work for a non-profit that contributes a 5% retirement stipend every month(I am not required to match to receive it) to a 403(b) account.

So is my first step to find side income of some kind?

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Tim Johnson
Real Estate Agent · Skagit Valley, WA · Member since 2021 · 257 posts · 283 votes
4y

@AJ Holt Welcome! 

First of all, starting at 32 may be late if considering major league baseball as a new career, but that's not true for real estate investing. Everyone's on a different path....you're right on time.... breathe deeply....

Back when we had 4 children between the ages of new-born and 6, we barely had enough time to use the bathroom for a few minutes in peace. I admire your steam to consider additional side income - but that usually comes with a substantial trade-off in time. Proceed carefully....

In the meantime, your situation sounds solid. I would keep your ROTH IRA at maximum contribution (as you seem to be doing). Anything you can do to get the emergency fund up to at least 10K before jumping into any new investing would seem prudent to me. Continue reading and studying as you have. You don't sound like a person who is all talk and no motion. Be patient with yourself. Often the first investment takes the most energy. It'll happen. In fact, be sure to take a moment on this first day of 2022 to celebrate how far you've made it already. Really...

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  • Tim Johnson
    Real Estate Agent · Skagit Valley, WA · Member since 2021 · 257 posts · 283 votes
    4y

    @AJ Holt Welcome! 

    First of all, starting at 32 may be late if considering major league baseball as a new career, but that's not true for real estate investing. Everyone's on a different path....you're right on time.... breathe deeply....

    Back when we had 4 children between the ages of new-born and 6, we barely had enough time to use the bathroom for a few minutes in peace. I admire your steam to consider additional side income - but that usually comes with a substantial trade-off in time. Proceed carefully....

    In the meantime, your situation sounds solid. I would keep your ROTH IRA at maximum contribution (as you seem to be doing). Anything you can do to get the emergency fund up to at least 10K before jumping into any new investing would seem prudent to me. Continue reading and studying as you have. You don't sound like a person who is all talk and no motion. Be patient with yourself. Often the first investment takes the most energy. It'll happen. In fact, be sure to take a moment on this first day of 2022 to celebrate how far you've made it already. Really...

    4Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    Welcome. And yes, you guessed it, you need more $$. Either a good side hustle or.....consider changing careers...? Side hustles don't typically pay well, and neither do non-profits.....

    But you can do it anyway, it may just take longer...

    2Reply
  • Steve W.
    Investor · Winchester VA · Member since 2019 · 16 posts · 6 votes
    4y

    Welcome!  I started investing last year at 34.  I have family with two kids and we live on one income similar to yours.  I started doing side jobs through TaskRabbit a few years ago and saved everything I made (after taxes).  Last year I was finally able to buy a triplex and I've been working on adding value over the past year to hopefully refinance and buy something else.  I'm definitely not on the fast road, and my investment property is 30 minutes away, but the strategies people talk about here do work.  If you can cut expenses or figure out a way to save more, you can absolutely do this!  Best of luck!

    2Reply
  • Rodney Lorenzo
    Member since 2021 · 119 posts · 45 votes
    4y

    If it'll make you feel better, I'm in my 50's and only starting now due to an inheritance. It's never too late and with no debt, you've proven that you're financially responsible. May this year be very prosperous for you!!

    3Reply
  • Steven Spinicchia
    Member since 2021 · 10 posts · 14 votes
    4y

    I don't think you're starting late at all!  I'm several years older than you and about to close one my first rental next week.  That being said, realistically you will need to build up some more capital before taking the plunge.  Even if it takes a few years to do so, you'll still be ahead of those who never even get started.  Don't give in to the pressure of feeling like you need to do it right now, as waiting to have a stable financial base would put you and your family in a more secure position; but that is just my opinion and I tend to be super conservative with all my estimates. 

    Another option if you are looking to invest in your local area would be to find a 2-4 unit in a neighborhood you like, live in one unit, and rent out the rest. 

    1Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    Agreed with all of the above, it will seem like forever then wham! you can start...

    What about trading the primary house with the mortgage for a house hack 2 or 3 family? Hopefully you aren't upside down on it? Is there equity from your downpayment?

    Since the kids are under 6 you can afford to be a little cramped for a while.

    0Reply
  • Cameron Braig
    Atlanta, GA · Member since 2021 · 493 posts · 162 votes
    4y

    Congrats on getting started and welcome to the forum. Attending networking events can be invaluable. You can here from people who started in a similar position and learn their hacks and lessons to help. It can also help with exposure to new thoughts, industry knwoledge, etc. Best of luck. 

    0Reply
  • Jon KellyPro Member
    Investor · Bethlehem, PA · Member since 2016 · 929 posts · 951 votes
    4y

    @AJ Holt you are already trying to limit yourself. "starting late" "32" "wife and 3 kids" "can ONLY save $500/mo."

    Adjust the mindset and commit yourself. Reduce expenses or increase income to save more $$$ for a down payment. 

    I would suggest networking with local real estate professionals while you continue to save. Can you become a real estate agent? Can you assist a local contractor and repair some properties? Can you find deals for a local investor and get paid? 

    0Reply
  • Tim Sylvester
    Homeowner · Phoenix, AZ · Member since 2020 · 5 posts · 6 votes
    4y

    Better than 47 with 4 kids, 3 under 13y/o like me, but better "late" than never right. Welcome AJ!

    1Reply
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