Hi Money Minder,
Hey there, I go by Penny Pincher, and I need your help with my financial situation. I bring in $62,000 a year as an account manager in healthcare, taking home $3280 after all deductions. I contribute 9% to both a traditional 401k and a Roth, with a 3% employer match on both. My retirement balance is sitting at $8120, and I’ve got $1800 in an HSA with a small employer match. I’ve also got a cozy little emergency fund of 10k in a high-yield savings account, which should cover about 4 months of expenses.
My monthly expenses break down like this:
- Rent – $1520 with utilities included
- Internet – $35
- Power – $60-80, but it goes down in the winter thanks to gas heating
- Car insurance – $160 for my reliable 2018 car (it’s good on gas but not the most dependable)
- Gasoline – About $60, but I’m trying to bike more to save
- Groceries – $350
- Eating out – $100
- Student loan minimum payment – $95, total balance $7500 at 3.7% interest
- Entertainment and hobbies – $150
- Clothes, haircuts, toiletries – $50
- Subscriptions – $50
- Miscellaneous stuff – $100, but I usually have some left over
That all adds up to about $2800 total, leaving me with around $400 at the end of the month for savings and extra loan payments. But it never feels like enough. I’m actively looking for higher-paying jobs in account management, sales, and business development (I have a degree in Business Admin from my state university).
I’m also considering side hustles, but I don’t have many marketable skills. Any advice you could offer would be greatly appreciated. Thank you!
Best, Penny Pincher
Response from THE MONEY MINDER:
Hello There,
Congratulations on being proactive in evaluating your financial situation and seeking advice on how to improve it. It’s commendable that you have a clear understanding of your income, expenses, and savings goals. It’s also reassuring to see that you’re exploring opportunities for higher-paying jobs and side hustles to increase your income.
Given your current financial breakdown, it’s evident that you have a good grasp on budgeting and managing your expenses. However, it’s understandable that having only $400 left at the end of each month for savings and extra student loan payments may not feel like enough progress. It’s important to prioritize paying off your student loan debt, as reducing that interest burden can help you achieve financial freedom faster.
In addition to seeking higher-paying job opportunities, consider looking into ways to increase your income through side hustles or freelancing opportunities. While you may feel like you don’t have many marketable skills, you’d be surprised at the demand for various services in today’s gig economy. You can explore online platforms for remote work, tutoring, writing, or other skills you may have.
Moreover, continue to monitor your expenses closely and look for areas where you can cut back. For example, consider reducing eating out expenses or finding ways to lower your monthly grocery bill. Every small saving can add up over time and help you reach your financial goals sooner.
Lastly, stay focused on your long-term financial objectives and keep working towards them diligently. Building your emergency fund further, paying off your student loans, and increasing your retirement savings are all crucial steps towards financial stability. Remember that financial progress takes time, so be patient and consistent in your efforts.
All the best from THE MONEY MINDER.
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