Hello everyone! First post here and new member, so if this is badly written, let me know! I’m looking for tips to improve my budget and advice on what to do with spare money. I am currently 19 years old and take home about $1200 bi-weekly without overtime. My current expenses are as follows: Car: $200 monthly, Insurance: $110 monthly, Rent/Utilities: $500 monthly (sharing with people), Phone: $50 monthly, Gym: $25 bi-weekly, Food: $300 monthly, Entertainment: $100-250 monthly, Gas: $50-100 monthly. I have $13k in checking/savings, $3k in debt (car), $0 in investments, and I contribute 6% to my 401k. Any advice would be appreciated!
Sounds like you’ve got your finances set for the most part. Start tracking your expenses and if this budget works for you, then great! Depending on your car’s interest rate, you might consider paying it off or using your extra money to pay it off faster if you’re risk-averse. After that, look into investing in a Roth IRA. Find some mutual funds that interest you and consistently invest. If you max out your Roth IRA, increase your 401k contributions. The earlier you start investing, the better off you’ll be, but feel free to treat yourself occasionally!
You’re doing great—congrats on being so diligent at 19! Start working on a financial vision to help determine what to do with your spare money. For instance, plan for a six-month safety net in case of job loss. Think about your long-term financial goals. Establish a target amount, like $20,000, and figure out a timeline to reach it. Pay yourself first to prioritize savings. Continuously assess your budget to see if there are areas you can streamline. Remember, your 401k contributions are often matched, so consider increasing yours! Investing and saving early is vital—don’t let your investment total sit at $0.