September 19, 2024
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THE MONEY MINDER

“I love money transparency, so if anyone was wondering what a 23 year old computer science major and bartender’s finances look like, here you go!” – Living independently but struggling with student loans. How can I achieve financial stability and plan for the future?

“I love money transparency, so if anyone was wondering what a 23 year old computer science major and bartender’s finances look like, here you go!” – Living independently but struggling with student loans. How can I achieve financial stability and plan for the future?

Hi Money Minder,

I’m a 23-year-old computer science major and bartender, and I’m all about that money transparency! Here’s a peek into my monthly spending and income breakdown:

  • Rent: $1050 (splitting 1 bdrm with my bf)
  • Utilities: ~$150 (varies, split with bf)
  • Subscriptions/memberships: $60
  • Phone: $57 / month (phone & plan)
  • Credit card: $0 (no debt)
  • Car note: $0 (paid off 2017 Honda Civic in 2021)
  • Car insurance/gas/registration/maintenance: All covered by work
  • Student loans: $100
  • Monthly income from 2 bartending jobs: Ranges from $4,000-5,600

Current balances:

  • Checking: $3938
  • Saving: high yield savings account ($5000)

Some additional details:

  • I’m the bar manager at one of my jobs, so work covers all things car-related, which is a huge help!
  • Currently, my student loans are my only debt, projected to be around $60k by the time I graduate. Planning to live rent-free with my parents or bf’s parents post-graduation until I clear that balance.
  • My spending is pretty typical – taking care of cats, buying food and litter. Food is my biggest expense because cooking at home is a struggle and eating out is just too tempting!
  • Once I land my "big girl job," I’ll start investing in things like a 401k, Roth IRA, etc., but for now, I’m sticking with my high-yield savings account.

Any advice, tips, or questions for me, Money Minder? Hit me up – I love chatting about money!

Cheers,
Financially Savvy Sally

Response from THE MONEY MINDER:

Hello There,

While it’s great that you have such transparency about your financial situation, it’s important to address some key points based on the breakdown provided. Firstly, it’s impressive that you have managed to be debt-free with no credit card or car note, which is quite an accomplishment. However, your plan to tackle your student loan debt by potentially moving back in with your parents post-graduation is a practical approach to getting your finances in order.

Given your current income and expense breakdown, it seems like you have a good handle on your finances. It’s commendable that you are considering future financial steps such as a 401k and Roth IRA once you secure a “big girl job.” In regards to your spending on food and eating out, setting a budget or meal planning could help you cut down on those costs while still enjoying some delicious meals.

As you continue on your financial journey, it’s important to stay on top of your budgeting and saving habits. Perhaps consider setting aside a portion of your monthly income towards an emergency fund in addition to your high-yield savings account. This can provide you with a financial safety net for unexpected expenses in the future. Overall, your proactive approach to managing your money is commendable, and with some minor adjustments, you’ll be well on your way to achieving your financial goals.

If you have any further questions or need advice on specific financial matters, feel free to reach out. Keep up the good work in managing your finances!
Farewell from THE MONEY MINDER.

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