Hi guys!
I’m 28 years old and I recently switched fields and will be making roughly 30% more. Specifically, I am going from $56,000 to $80,000. There is a $5,000 sign on bonus, and potential for bonuses and raises at the end of each year. They also have stock options and a bunch of other fringe benefits. I live in southern California with my SO, and we have no children. I’m trying to figure out what to do with the extra money – my potential plan is at the bottom. I am very frugal to begin with, use Mint to budget, and am very well aware of lifestyle creep, so that should not be an issue.
Here’s a rough breakdown of my budget per month (FYI: this is MY half of expenses with my SO as well as my own personal expenses):
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Rent: $700
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Utilities: $15
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Internet: $25
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Groceries: $175
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Dining out: $100
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Spotify/Netflix/etc.: $20
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Student Loan: $400 (min payment is $300)
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Car Loan: $360
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Car Insurance: $100
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Gas: $60
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Clothing: $200 (not usually the case, but it was this year! Needed a wardrobe overhaul)
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Pet Insurance: $55 (parents have dog, I just pay for the insurance)
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Other: $300 (Gifts, cosmetics/skincare, medical copays, other entertainment, etc.)
Total: $2,510
Depending on the month, this can go up to $3,000 (maintenance or emergencies or whatnot)
Debt Remaining:
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Student Loan: $8,900 @ 3-4%
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Car Loan: $2,600 @ 0%
Retirement/Savings:
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Emergency Fund: $16,000
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401k: $17,000 – Right now this is at a 100% up to 8% match, but with the new company, will be a 50% match up to 3% (so 6% for me). I’m also not vested with my current company, so that sucks (just transitioned in July).
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Roth IRA: $1,100
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Vanguard Fund Admiral Shares: $14,900 Just a note: I’m slowly moving the Admiral shares over to the Roth IRA and buying VFIAX (per a CPA suggestion, but that was before the job change).
My plan is to throw the bonus/some of my paycheck at my student loans until they are all gone, increase my 401k contribution, then start to contribute to my Roth, but beyond that, I have no clue. Any suggestions, or even other ways to improve? Am I on the right track? All are welcome!
Submitted November 28, 2018 at 11:10PM by whatisit_throwaway https://ift.tt/2RmqBXs
