Hello, r/personalfinance. I graduated last May and found a job in a new city. Before I could even get settled in here to my new place and job, someone rear ended my car into an intersection, and it looks like I might need to get a new car (insurance + possible repair still up in the air). This has been complicating the whole transitioning thing as one might expect.... I mainly need advice on three things: budget, 401k, and what to do about my car.
Budget
Income:
- ~$2950/mo [~$1475 every two weeks (after taxes). Not currently taking anything out for 401(k) as I don't qualify until I've been at the company for 60 days.]
Expenses:
- Rent: $780/mo (includes internet)
- Utilities:~$110/mo
- Phone: Currently on a "business" plan with my family who I will start paying for once I'm settled in.
- Renter's insurance: Paid for a year
- Auto insurance: $100/mo (was ~$600 for 6mo, will expire in December)
- 401(k): $125?*
- Food: How much should I be allowing myself? I can and have lived off ramen & pb&j's but at some point I would like to move on from that.
- Gas: How should I estimate this if I'm buying a new car? Calculate it from an average/more than average mpg and my commute? My commute is somewhat sizable at 20min one way.
401(k)
My company matches 3% at 100% and the next 2% at 50%, so I know I need to be contributing at least 5% so I can get all my free money. Should I be putting more than that in? Should I be putting more in once I have my car situation resolved? There are a lot of different options, do any of you know of more detailed resources than what's in the wiki? It mentions a lot about bonds, but of the near 30 investment options available to me, only one is a bond. There is an option to have a managed account for about $25/year in which someone will change what's allocated there quarterly based on how things are doing/your personal information. I am considering this service for at least one year, during which I can monitor things and become more familiar with the different options.
And the car :(
Best case scenario, I can get it repaired with the insurance money I'll be getting (other driver was 100% at fault).
However, there is also a chance it's totaled and I'll need to get a new car. How much can I afford to spend on a car? I do not have any significant savings yet (college wiped me out) so I will be relying on the insurance money & possibly a loan. I do have a good credit score (mid 700's) so I could speak to some local credit unions-but I'm a little concerned about doing so. Would it be better to just stick to a budget of whatever the insurance company gives me? I 100% plan on buying something used but I also would like something that will last a little while, and not be a huge down grade from my old car.
Thankyou for taking the time to read all this, as stated earlier any advice is greatly appreciated.
Submitted July 27, 2018 at 09:13PM by couldgoforsomeadvice https://ift.tt/2uR5Rht
