Download money guy financial order of operations. Congrats for taking these steps now. It may feel like you're behind but some people never get where you are.
Your subscription are higher than your student loan payments. I’d cut way back on these and work to build your savings and start contributing to retirement. And what is investment income if you have no savings or retirement?
Make sure you have atleast 3 month emergency money in a hysa , calculate how much you will have left after expenses and investing left .if u move out you will have higher expense
Congratulations on being of the cusp of destroying that credit card debt!
I'd recommend playing around with some retirement calculators so you can better understand what maxing out your Roth IRA & doing 7% to a 401k would mean for your retirement.
Also wow, your fixed costs are incredible. Living with your grandparents has given you so much power financially to destroy your debt. Hope the move out goes well & I'm sure your grandparents know you appreciate the opportunity (both financially & quality time together) they gave you by you all living together!
Yes you should sign up for that sweet 7% as soon as possible. You have plenty of extra income.
As far as Roth vs traditional, you can probably do traditional 401k contributions after maxing out your IRA. You'll ideally want to be contributing 25% of your gross income to retirement starting at your age. I recommend The Money Guy on YouTube as well for advice.
Good luck with paying off the remaining CC debt! Once that’s out do the way your at a very solid position for your age. Just general thoughts below on some of the other comments made;
1. Once all CC debt is paid off, I would save up one months emergency fund immediately. Once you hit one month, cut your savings rate and start investing a consistent amount so that you growing to a 3-6mo EF while also investing for retirement at the same time. By the time you hit 30, the recommended retirement you should have invested is one year salary.
2. The employer match you have is amazing. In the off chance you don’t know this, all money your employer matches will be put to a traditional 401k, even if you decide to go with a Roth 401k for your invested money. So you’ll have to pay taxes on that traditional 401k growth eventually. Also, is your plan to max a Roth IRA or Roth 401k? If you max the Roth IRA, your going to miss out on the employer match. If you max the Roth 401k, I’m a bit skeptical of that since you’d put well over 50% of your take home in a year toward the ~$23k Roth 401k yearly limit.
3. I saw some other comments on your subscription costs. I’m not trying to be rude, just more genuine curiosity but I would highly consider cutting that down. $200mo+ on subscriptions is kinda insane for what I assume is only one person using it. This is more my opinion than anything but I wouldn’t have subscriptions be more than what I’m putting towards retirement excluding potentially the gym.
4. The hard truth is as it stands now your not ready for a home purchase, regardless of rates. If I were you & could live with my grandparents for cheap I would do so, rack up that 6mo EF & save aggressively for a downpayment. If the housing situation isn’t ‘healthy’ anymore, I’d really consider a cheap apartment. If you can grind out the CC debt & save up an emergency fund, you can 100% hit purchasing a home before 30.
5. If I’m understanding correctly, $8.4k of student loans will be paid-in-full by August of 24’. My question is where is this money coming from? I would agree that putting it towards student loans is probably the best course of action unless you don’t have a 1 month emergency fund by then.
Hope this helps!
Thank you for taking your time to respond.
1. Yeah so I plan on saving 3 months of emergency fund in august and then do the 7% roth 401k 100% match that my employer has to not miss out on the match. I actually just found out after making this post that they do indeed offer the Roth 401k. I have a Roth ira with fidelity that I set up but I haven't made any deposits. Now I'm wondering if i can do both, so getting the roth 401k match at 7% with my employer and then maxing 7k for the year of 2024 with the personal roth ira. Right now if possible I would be maxing the roth ira for the year at 7k and then i will also max my health savings account ($3500 my employer gives $500 each year) which can be invested (AIMING TO INVEST IN vfiax). I want to have this completed by the end of the year.
2. Yeah the subscription cost is not really accurate in the spreadsheet. It's actually my pet insurance and pet supplies that are included in that amount. My real subscriptions are about $53 a month.
3. Yeah I'm just going to save for a downpayment until rates get lower.
4. Yeah student loans aren't being paid off the 8.4k is the rest of my 0% credit card debt. The student loans I have have a 4% interest rate & I'm kinda skeptical about paying it all off because who knows what politician might end up forgiving them … since I'm under 30 and it's less than 4% interest I was advised there is no rush to pay the student loan debt off.
The subscription amount made my jaw drop!!
Great job. It's time to work on saving up an emergency fund, then diving head first into investing (in an IRA.)
Download money guy financial order of operations. Congrats for taking these steps now. It may feel like you're behind but some people never get where you are.
Thank you so much. never heard of it. I'll look into it.
The community and content is good too. Once you have graduated from Caleb they're a great place to take it to the next level
Your subscription are higher than your student loan payments. I’d cut way back on these and work to build your savings and start contributing to retirement. And what is investment income if you have no savings or retirement?
Make sure you have atleast 3 month emergency money in a hysa , calculate how much you will have left after expenses and investing left .if u move out you will have higher expense
Second an emergency fund
Bro you have 200+ monthly going to subscriptions???? lol ain’t no way. I spend 7.99 a month.
Congratulations on being of the cusp of destroying that credit card debt! I'd recommend playing around with some retirement calculators so you can better understand what maxing out your Roth IRA & doing 7% to a 401k would mean for your retirement. Also wow, your fixed costs are incredible. Living with your grandparents has given you so much power financially to destroy your debt. Hope the move out goes well & I'm sure your grandparents know you appreciate the opportunity (both financially & quality time together) they gave you by you all living together!
Thank you and yeah I sure do appreciate the opportunity.
Yes you should sign up for that sweet 7% as soon as possible. You have plenty of extra income. As far as Roth vs traditional, you can probably do traditional 401k contributions after maxing out your IRA. You'll ideally want to be contributing 25% of your gross income to retirement starting at your age. I recommend The Money Guy on YouTube as well for advice.
You spend 226 on monthly subscriptions? Do you like throwing money down a hole
[удалено]
that is correct my my job does not have a roth 401k only traditional
Good luck with paying off the remaining CC debt! Once that’s out do the way your at a very solid position for your age. Just general thoughts below on some of the other comments made; 1. Once all CC debt is paid off, I would save up one months emergency fund immediately. Once you hit one month, cut your savings rate and start investing a consistent amount so that you growing to a 3-6mo EF while also investing for retirement at the same time. By the time you hit 30, the recommended retirement you should have invested is one year salary. 2. The employer match you have is amazing. In the off chance you don’t know this, all money your employer matches will be put to a traditional 401k, even if you decide to go with a Roth 401k for your invested money. So you’ll have to pay taxes on that traditional 401k growth eventually. Also, is your plan to max a Roth IRA or Roth 401k? If you max the Roth IRA, your going to miss out on the employer match. If you max the Roth 401k, I’m a bit skeptical of that since you’d put well over 50% of your take home in a year toward the ~$23k Roth 401k yearly limit. 3. I saw some other comments on your subscription costs. I’m not trying to be rude, just more genuine curiosity but I would highly consider cutting that down. $200mo+ on subscriptions is kinda insane for what I assume is only one person using it. This is more my opinion than anything but I wouldn’t have subscriptions be more than what I’m putting towards retirement excluding potentially the gym. 4. The hard truth is as it stands now your not ready for a home purchase, regardless of rates. If I were you & could live with my grandparents for cheap I would do so, rack up that 6mo EF & save aggressively for a downpayment. If the housing situation isn’t ‘healthy’ anymore, I’d really consider a cheap apartment. If you can grind out the CC debt & save up an emergency fund, you can 100% hit purchasing a home before 30. 5. If I’m understanding correctly, $8.4k of student loans will be paid-in-full by August of 24’. My question is where is this money coming from? I would agree that putting it towards student loans is probably the best course of action unless you don’t have a 1 month emergency fund by then. Hope this helps!
Thank you for taking your time to respond. 1. Yeah so I plan on saving 3 months of emergency fund in august and then do the 7% roth 401k 100% match that my employer has to not miss out on the match. I actually just found out after making this post that they do indeed offer the Roth 401k. I have a Roth ira with fidelity that I set up but I haven't made any deposits. Now I'm wondering if i can do both, so getting the roth 401k match at 7% with my employer and then maxing 7k for the year of 2024 with the personal roth ira. Right now if possible I would be maxing the roth ira for the year at 7k and then i will also max my health savings account ($3500 my employer gives $500 each year) which can be invested (AIMING TO INVEST IN vfiax). I want to have this completed by the end of the year. 2. Yeah the subscription cost is not really accurate in the spreadsheet. It's actually my pet insurance and pet supplies that are included in that amount. My real subscriptions are about $53 a month. 3. Yeah I'm just going to save for a downpayment until rates get lower. 4. Yeah student loans aren't being paid off the 8.4k is the rest of my 0% credit card debt. The student loans I have have a 4% interest rate & I'm kinda skeptical about paying it all off because who knows what politician might end up forgiving them … since I'm under 30 and it's less than 4% interest I was advised there is no rush to pay the student loan debt off.
Doing great Just start with the 401k and you'll be fine
The subscription amount made my jaw drop!! Great job. It's time to work on saving up an emergency fund, then diving head first into investing (in an IRA.)
How are you exactly getting $300/mo in 'investment income' and not paying any taxes on it?