I just got a bump in my hours at work and my pay is now $25 per hour for 30 hours a week, which is super exciting but also a bit overwhelming. I’ve only been at this job for about three months, and this is my first gig. After taxes, I’ll be taking home around $617.56 weekly. My current expenses are pretty low, since I pay $500 a month to my mom for rent and bills, and I have a few other expenses like my dog’s insurance and streaming subscriptions. After all my bills, I think I’ll have about $1,841.28 left over each month. I also need to pay off around $1,101 in credit card debt. Can anyone give me some tips on how to manage my money? Should I focus on paying off my debt, saving for a car, or maybe even investing a bit?
Congrats on the new pay rate. I would recommend prioritizing paying off that credit card debt first. It can definitely free up some cash for you once it’s gone.
Reagan said:
Congrats on the new pay rate. I would recommend prioritizing paying off that credit card debt first. It can definitely free up some cash for you once it’s gone.
Totally agree. Try to put around $600 to $700 towards it each month, and you could clear it in just a couple of months. Then you can focus on savings and investment.
@Koa
Thanks for the tips. I wasn’t sure how aggressive I should be with paying it off. That makes sense.
I feel you, budgeting can be tricky. I use an app called Habit Money to track where my money goes. It helps me see patterns without manually sorting through everything. You might find it useful.
Zander said:
I feel you, budgeting can be tricky. I use an app called Habit Money to track where my money goes. It helps me see patterns without manually sorting through everything. You might find it useful.
Does Habit Money require a subscription like Rocket Money? I like the breakdown features in Rocket Money, but I’m open to trying something else if it’s better.
@Leith
No, it doesn’t have a monthly subscription. It’s great for tracking without the extra cost. You should give it a shot, especially if you want to see where your money actually goes.
You should definitely follow the 50/30/20 rule, where you allocate 50% for needs, 30% for wants, and 20% for savings. Since your living expenses are low, you can adjust this as you see fit.
Nile said:
You should definitely follow the 50/30/20 rule, where you allocate 50% for needs, 30% for wants, and 20% for savings. Since your living expenses are low, you can adjust this as you see fit.
That makes sense, thanks for breaking it down. What about an emergency fund? Should I keep that in a regular savings account or look for something with a higher interest rate?
@Leith
A regular savings account is usually best for emergency funds because you can access it anytime. It’s good to have that flexibility.
Definitely prioritize paying off your credit card debt. Once that’s out of the way, you can focus on building an emergency fund and saving for a car. It’s a good mix.
Quinn said:
Definitely prioritize paying off your credit card debt. Once that’s out of the way, you can focus on building an emergency fund and saving for a car. It’s a good mix.
Got it, I’ll make paying off the debt my top priority. I’ve also been considering whether to contribute more to my 401k or start a Roth IRA. What do you think?
@Leith
Definitely contribute at least enough to get your employer match in your 401k. That’s free money. After that, a Roth IRA is a great option for long-term investing.
Another thing to think about is how to manage the extra money you’re making. Once your credit card debt is paid off, consider setting aside some for fun and some for savings, but don’t let lifestyle inflation sneak in.
@Orion
Thanks for that advice. I want to make sure I’m not spending just because I have more money. I’ll keep my expenses in check.