- Income
- Just got a new promotion, now making $72,800/yr pre-tax, $56,056 after tax/deductions. If I do 2hrs OT per week, that’s an extra $5460 or $4204.20 after tax, so $60,260 altogether.
- Debt
- I’ve got a consolidated student loan at 5.75%, about $179 a month in interest while on forbearance
- Owe $37,327.18
- Also have a $112.95/month medical expense included in my monthly expenses
- Total of $1021.72 at 0% interest
- I’ve got a consolidated student loan at 5.75%, about $179 a month in interest while on forbearance
- Monthly Expenses
- Totals $2240
- $946 for all housing expenses
- $584 Roth IRA contribution
- $112.95 medical payment plan of 0% interest
- $400 for food
- $60 for gas
- $1.92 for Nintendo yearly subscription
- $6.60 for Pandora
- $2.19 for Google storage
- $15 for Mint Mobile
- $100 for car/renters insurance
- $8.43 monthly savings for car oil change
- $14.58 monthly savings for yearly car tabs
- $2.50 Costco subscription split with a family member
- Totals $2240
- Savings
- Used to save $1200 a month with my old income, now saving $1800-2150 a month (not sure exact amount since I haven’t received my first check yet)
- Retirement – Brokerage/HYSA/HSA
- Fidelity: $25,088.66
- Roth IRA: $14,857.93
- Simple IRA: $10,014.28
- Public: $6,324.20
- Vanguard: $9,261.11
- Need to move this to Fidelity IRA
- HOUSING: $20,981.09
- HSA: $11,167.31
- I don’t spend out of this, saving it for retirement
- Fidelity: $25,088.66
- Ways I Save
- Stopped spending on alcohol (used to be $176.42 a month)
- Canceled Netflix and using free streaming services instead
- Cut my cell phone bill from $825 a year with Verizon to $180 a year with Mint
- Work from home so I don’t drive much
- Rarely eat out or go to movies, mostly stick to free entertainment
- Canceled my gaming subscription ($15 a month)
- Cut Amazon subscription
- Trying to buy cheaper toiletries
*Thinking about getting a second job, but struggling to find one that’s WFH or close by (applied to a grocery store 3 times, looking at other local shops now)
Sincerely,
Savings Seeker.
Response from THE MONEY MINDER:
Hello There,
Congratulations on your new promotion and increased income! It’s clear that you are already doing a great job at managing your expenses and savings. In terms of whether to pay off student loans, save for a home/land, invest in a brokerage account, or a combination of these, it’s essential to prioritize based on your financial goals and current situation.
Given your student loan balance and interest rate, it may be wise to allocate some of your savings to pay down the debt gradually while still maintaining a comfortable emergency fund in your HYSA. This way, you can save on interest payments and work towards financial freedom in the long run.
When it comes to saving for a home/land or investing in a brokerage account, consider setting specific goals and timelines for each. Saving for a home/land can be a great long-term investment, especially if you plan to share it with a family member. Investing in a brokerage account can help you build wealth over time, but it’s crucial to consider your risk tolerance and investment timeline.
It’s fantastic that you are actively looking for a second job to supplement your income further. Keep exploring different opportunities that align with your skills and preferences, whether WFH or local. Remember that it’s essential to strike a balance between work and personal life to avoid burnout.
Overall, taking a realistic and practical approach to managing your finances will set you up for success in achieving your financial goals. Keep up the excellent work in cutting unnecessary expenses and saving diligently. Remember, it’s essential to make informed decisions based on your unique circumstances and priorities.
Best of luck on your financial journey,
THE MONEY MINDER
