I’m a 26-year-old male, unmarried, and I’m hoping to get some feedback or advice on my budget and lifestyle. I’ve never made a budget before, so I’m not really sure what a decent amount to have leftover each month is or if there are any categories where I could cut back. My monthly income is about $3,962 after taxes, insurance, and retirement from my 9-5 job, plus I make an additional $400 post-tax from a side gig, which gives me a total of $4,362 each month. My ‘needs’ expenses are about $1,946 a month, which includes rent and utilities, a student loan payment, groceries, internet, clothes, my cell phone bill, and toiletries. My ‘wants’ expenses are around $134 a month, which is mostly for eating out and video game subscriptions. I don’t have any other debts aside from my student loan. I’m lucky enough not to need a car since my workplace is within walking distance, and my job has a pension plan instead of a 401K, where I’m forced to contribute 7% of my paycheck. I currently have an emergency fund built up for 5 months in a high-yield savings account. With about $2,300 left over each month, I’m wondering if this is considered comfortable and how much of this I should be saving, investing, or splurging on. I don’t go out much, and I mainly play the same video game every day for entertainment. I don’t have any immediate goals like saving for a house, and I don’t want kids. I do enjoy traveling occasionally, but not super often. Thanks for any advice.
Personally, I would save the remainder. You never know when an emergency may come up or if there’s a larger expense for the month.
I think your budget looks pretty good. With that leftover cash, you might want to consider investing a portion of it, especially if you don’t have immediate goals.
I get that you don’t have immediate goals, but it might be wise to think about saving for travel or a fun experience. Having a little splurge fund can help keep your budget enjoyable.
Since you don’t have a lot of wants, it sounds like you’re in a good position to save and invest. Just make sure you don’t cut back too much on enjoyment.