My Rich Nerds,
I get messages like this every week: “Unc, I’m doing everything right… Why do I still feel broke?” And usually, the answer is simple: they’re spending too much on a car or on rent. But today’s guy? He’s different.
Meet Goku (I forgot to ask his name, so we’re using my favorite Super Saiyan’s name), a 23-year-old living in Los Angeles (already playing on hard mode). He came to me frustrated and worried that he can’t save any money, and that homeownership (his main goal) feels impossibly far away. Let’s look at the numbers.
The Stats 🔢
He earns $4,200 a month after taxes, has no debt, and has accumulated $82,000 in assets, split between a Roth IRA and a brokerage account. Additionally, he has a stellar financial mindset, tracking every dollar in an Excel spreadsheet (this man likely knows his cost per wipe). He’s even taken dating off the table because he deemed it too expensive. Which is honestly one of the most disciplined things I’ve ever heard. Romantic? No. Financially optimal? Unfortunately… yes.
He even does side construction work and has been pulling in about $1,500 a month (not included in numbers above), though it’s inconsistent and starting to slow down.
His monthly essentials run about $3,200, including $600/month into a Roth IRA because he’s trying to be responsible and max it out early. Rent is $1,300, food is $500, gas is $250, insurance is $150, and miscellaneous is $400.
On the surface, everything looks dialed in, but there are some issues here.
The Problem 🚨
The main issue is that he only has $2,000 in savings. When sh*t hits the fan, that disappears fast. And sure enough, during our live session, he got a quote saying his car needed a $2,000 repair…
Just like that, his entire savings pack got deleted. If anything else happens next month—tires, the dentist, the latest Pokémon card drop— credit card debt may be the only option. Or equally as bad, pulling from retirement savings…
The problem is that he’s investing like someone with a fully funded emergency fund while living like someone with zero margin for error.
His income is guaranteed to increase meaningfully over time. He works in corporate construction, is pursuing licensing, considering going back to school for additional credentials, and long-term wants to own a construction company, get into real estate development, or both. In other words, this is not his final form.
The Patch ✅
The fix is boring, but effective:
He needs to rebuild his expert emergency fund: 6 months of living expenses. In his case, $19,000. This money should be saved within a HYSA*. Yes, that means temporarily stopping ALL investments beyond his 401(k) match. That’s free money, and we don’t disrespect free money in this household. If he needs to temporarily stop contributing to his Roth IRA and redirect it to the 401k to earn the full match, that’s a better use of dollars right now. This cash will not only cover his ass for emergencies, but it will allow him to BREATH!
After that, he can return to investing in his Roth IRA.
Accomplishing these two steps puts him in a position to take calculated risks and eventually go off on his own, because in his family’s words:
“Why would you want to work for someone else when you can work for yourself?”
💸🤓
Watch the full audit here:
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