I make 45K, I put 10% of my paycheck into retirement (ends up being about $250/month) and my employer matches 5%), and $400 toward student loans (minimum payment is $100 but it used to be $400 so I’ve just continued paying that much).
I have an emergency fund of 2K. I know it should be bigger but I have a stable job in the federal government and I would have to do something illegal to lose my job—and even then I would still have the job 2-4 months after being terminated—so the emergency fund is more for unexpected short-term expenses than for unexpected unemployment.
But with all that aside, I end up having almost no money left over by the time my next paycheck rolls around. I know I could cut some expenses but I live a very average middle class lifestyle. I used to be dirt poor and I really don’t want to have to live like that again just to put some money aside.
So… I guess my questions is, where do I draw the line? I want to increase my emergency fund and save for a downpayment on a house, but to do that I would have to live on like 25K a year. Do I put less money into retirement/debt repayment and divert it toward saving for a mortgage? Or do I need to live like I’m making minimum wage in order to prepare for my future?
Submitted April 06, 2018 at 08:25AM by Harry_Coolahan https://ift.tt/2uQTAfi
