I've just started to get really serious about my financials this past year as I'm getting older. I've always been relatively good with money but never realized the complexities of having checking/savings/401k/Roth IRA, etc. A little bit of background: I am 26 years old living in New England (US). I just got a new job in my field and currently make 70k/yr and am a renter. My monthly expenses are as follows:
Rent: $1,050
Car Payment: $200 ($2,874 remaining) 3.5%
Student Loans: $181 ($5,947 remaining) 3.5%-4.5% various loans
Car Insurance: $71
Dog food/expenses: ~$50
Netflix/Spotify: $15
I have $11.5k in a 401k from an old employer and so far $0 in my current one (plan to contribute 20% starting with my first check, 1.5% match) in addition to $17.4k in savings.
My immediate goals are to save as much money as possible for a down payment on a house to get out of the rent cycle and start building equity in a home. I haven't been paying my student loans since the government shut off interest payments for covid but pay double on my car every month.
I feel like I'm in a decent spot financially but don't really know how to capitalize on this increased income and prepare for the future. What are my options in terms of saving/retirement saving? Is 20% too agressive? Should I start and IRA/rollover my old workplace plan? I'm not so sure how to proceed from here and any advice from the PF community is greatly appreciated!
Submitted February 04, 2021 at 07:21AM by spinach_richard https://ift.tt/2Mp4Lpf
