- Current Expenses:
- Rent + Utilities = less than or equal to $800/month
- Truck payment = $335/month
- Gym membership =$20/month
- Spotify = $5/month
- Full coverage insurance for truck and motorcycle = $150/month
- Gas = $150/month
Total = $1460
Savings = $12,000
Age: 23
Annual Income = $68k/year
I am trying to decide how much and where I should put the money I am making. My paycheck after tax (bi-weekly) with no contribution is $1881.
I would like to max out my 401k (employee matches 100% of up to 4% of my contribution) am unsure of whether I should put any money in the after tax 401k, or create a fidelity account and put money into a Roth IRA.
The thing with the after tax contribution is while it is all post tax, I can withdraw from it at any time one time per calendar year.
I have just been given this job out of school and I am just trying to make the best financial decision to maximize my money.
Currently my plan is this:
- 12% in pre tax contributions
- 2% in after tax contributions
- 4% employer match
- Max out Roth IRA (458/month)
Then I will have $1000 to put into my savings per month along with $417 for food and entertainment.
Does this sound like a good idea?
Submitted July 17, 2018 at 09:26AM by BuiltTaco https://ift.tt/2L1QXyN
