Looking for feedback specific to my situation. Two months ago, I got my first full time job paying $80k before taxes and moved out permanently for the first time. I am 23 living in the USA. I don't have any debt, and my expenses are relatively modest, so right now I'm dumping what I can into retirement savings just to keep the money out of my own not-so-frugal hands. I live with my girlfriend, who currently is working part-time to pay bills and maintain her savings, still unsure of her path towards a career. She has a degree but hasn't found any full time opportunities. I know I should shift a little towards saving for the short term, for an emergency fund and a down payment at some point, but I'm not sure how to balance it.
I feel tempted by the idea of having a huge retirement savings built up, but I also feel like I'd enjoy the money much more if it was spread out across my late 30's and 40's instead of hoarding away too much until I'm too old to enjoy it. I don't want to live lavishly.. I just need to figure out a balance where I feel like I am saving an appropriate amount, but don't feel too stressed about pinching pennies to my own detriment. For the most part, I recognize that I am set up to have an easy financial road ahead of me if I make the right decisions.. and for some reason that freaks me out a little bit.
Biweekly expenses:
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+ $3,077 gross biweekly income
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- $735 total taxes (24%) (unsure if I will be getting a refund at this point)
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- $60 HSA contribution (2%) (employer contributes $1100 annually)
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- $670 401k (10% traditional 12% roth, 100% of 6% employer matching, plus 0-4% extra matching at end of year) (22% + 6-10%)
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- $360 Roth IRA (contributing extra to catch up to 2018 max contribution) (7%)
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- $461 Short term savings (emergency fund, eventually down payment, marriage) (15%)
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- $390 Rent, Electric, Water, Internet (These I split 50/50 with my girlfriend) Car (0 interest, paying back my dad), day-to-day gas (13%)
This leaves about $400 biweekly for food, and recreational spending. A good chunk of it goes towards working on cars as a hobby. I haven't really created a budget for food because don't really understand how to do it, but I try to be frugal. (17%)
Balances:
IRA: $5k
401k: $2k
HSA: $700
Savings: $1k
Things I wish I were saving more specifically for: A wedding ring A down payment for a house (several years in the future) A few thousand a year for car projects Better apartment next May (probably $100-200 more a month)
Am I locking away too much too soon? I'm sensitive to the fact that my contributions will never be worth as much as they are right now, given the number of years left to accrue interest.
EDIT: formatting
Submitted July 30, 2018 at 02:55AM by alpinem https://ift.tt/2Lz4IFt
