Ask HN: Just found out that I’m gonna be a dad
Hey man, first off... no judgement intended, but look on Glass Door and make sure you&#x27;re being paid appropriately for your line of work in your region. And... consider moving to a region that pays more. Just saying, $50k seems low for tech &#x2F; anything that would bring you to the Hacker News community.<p>If you&#x27;re freelancing, and sometimes you get paid and sometimes you don&#x27;t, you need to work on getting clients to pay up-front (most are happy to do the first payment up-front at least), or at minimum make sure your contracts are solid and you&#x27;re billing and following up for the work you did. (This is the bane of freelancing, and it gets more complex the more clients you have.) Fixing your contracts and invoicing will keep things consistent. Cut any client that doesn&#x27;t pay on time, and never lift a finger to help someone who is behind on payments -- so many times people try and be &quot;nice&quot; but if they don&#x27;t pay, they&#x27;re just using you.<p>Generally speaking, so many issues are sorted out for you if you take a job at a bigger company. Stability, insurance, consistent pay... this is a huge draw for a lot of people. Freelancing is fun for diversity, and the pay can be better, but in the long-run most of my friends who work at big companies seem like they have more time for their families. Something to consider.<p>Savings is going to be key, and it&#x27;s impossible to retroactively save, like it&#x27;s impossible to retroactively diet, so you just fix the issues as you see them and try to avoid mistakes and stay healthy going forward. You need to find a way to get money saved up. It&#x27;ll help with your stress. When I freelance, I try and keep 6 months of cash for all bills on hand. My mortgage, car payments, etc. -- should work dry up, I want runway to fix it.<p>The prerequisite to the above is having a budget. A lot of people just sort of spend what they spend, and don&#x27;t think about it. This is lazy and wasteful. If you eat out a lot, set a budget... and consider scaling that down. When I first started tracking, I realized I was spending about $600 a month eating out. I cut that to $300 -- it was a bit harder at first, but I like cooking and meal prep, and within a year I went from eating out almost every meal to almost never eating out at all -- unless it&#x27;s for work.<p>Once I had a budget, and my target savings goals, I got there by auditing my spend, and cutting expenses. Then putting aside 10% of my paycheck (for a few years), into paying off all debts and building savings. Once I hit the &quot;cushion&quot; goal, I still take 10% and put it into a 1) rainy day fund, and 2) retirement fund. The rainy day fund is for bigger purchases... things like, &quot;Oh crap, I need a new AC,&quot; type stuff. It&#x27;s invested, but it&#x27;s more liquid -- I can turn it into cash inside of a week if needed.<p>For debts, it&#x27;s not rocket science. Pay the ones with the higher interest rates first. Generally speaking. Credit card debt is horrible, and will doom you. Get it all paid off as quickly as you can. Then work on things like student loans, mortgages, etc. Keep in mind a lot of this debt helps you with your taxes... set up some time with a professional tax consultant and see what they say.<p>For a retirement account, and for a kid&#x27;s college account, I just use a three-fund portfolio approach. <a href="https:&#x2F;&#x2F;www.bogleheads.org&#x2F;wiki&#x2F;Three-fund_portfolio" rel="nofollow">https:&#x2F;&#x2F;www.bogleheads.org&#x2F;wiki&#x2F;Three-fund_portfolio</a> It&#x27;s simple enough, and I&#x27;ve beaten the market the last 10 years. Let the machines do it, I wasted money on a money manager for years... kicking myself. They always took 1% of my money... not just the profit. It was a rip off. And you can do this stuff yourself. (=<p>Setup some time to chat with a banker, but y&#x27;know... understand that they&#x27;re out to make money too. If you&#x27;re new to investing, they can help you with some of the basics... a Roth IRA, for example, if you don&#x27;t already have one. Keep away from places like Edward Jones, the strip-mall shops have literally the worst returns vs. fees vs. risks (vs. environmentally friendly investment) ratios.<p>Anyway look, financial health, like fitness, or anything... isn&#x27;t something you just do over night. It takes planning and effort to get where you want to go. Don&#x27;t beat yourself up for past mistakes, learn from them and adjust going forward. Cheers!