My Rich Nerd,

I recently met with a 29-year-old who felt financially behind. His retirement savings were below Fidelity’s suggested milestones, but dwelling on that wouldn’t help. We needed to replace that feeling with a plan...

The Stats 🔢

He earns $6,000 per month, reports about $4,000 in monthly expenses, and has $17,000 in debt, $0 in cash savings, and $6,000 in investments.

After working at In-N-Out and Baskin-Robbins, he moved into pool servicing. Now, he’s building his own client list while working for another company. His partner works at Starbucks and has about 18 months left in nursing school. Together, they’re raising two young kids.

The Problem 🚨

My first question: “Where is the extra $2,000 going each month?”

He couldn’t tell me. Maybe it was extra debt payments. Maybe it was hiring a private investigator to find out GTA 6’s actual release date. Maybe some went toward ice cream with the kids.

Before we could assign that money a job, we needed to confirm it actually existed. That meant reviewing his transactions, checking whether the income figure was before or after taxes, and accounting for one-off expenses.

The Patch 🔧

I’d start with a $4,000 level 1 emergency fund, covering one month of his reported expenses, while keeping required debt payments current. If the full $2,000 is available each month, that’s roughly two months of saving.

Next, I’d direct extra payments toward the highest-interest debt, while paying the minimums on everything else. As expensive debt clears, he can build toward six months of expenses— the level 2 emergency fund of $24,000—and increase retirement contributions. I’d also check for any employer retirement match along the way. As some say, “We don’t turn down free pancakes, and we most definitely turn down free money.”

To catch up on retirement savings, 2x his income by age 35, he’ll need to invest around $2,500/mo. These numbers may feel insane, but this is the reality.

Their career plans matter, too. Growing his pool business and finishing her nursing program could improve their finances considerably! I am beyond excited for them.

Watch the full audit here: https://www.youtube.com/watch?v=szenVuz1xP0

Thanks,

Imran