Hey everyone, I’m 18 and I’m thinking about refinancing to get my dream car. Before I do anything, I wanted to get some advice from you all and see what I might need to adjust. (I haven’t refinanced yet, so if a lot of people think it’s a bad idea, I won’t go through with it.)
I make about $4k a month, and here’s how I’m currently spending my money:
$500-800 on car payments and insurance
$200 to help my mom with rent as we’re moving into a new place
$120 for gas and subscriptions (Xbox, DoorDash, Spotify, etc.)
$600 towards the future: $400 to a high-yield savings account, $100 to stocks, $100 to a Roth IRA
The rest is emergency or spending money. I’m young and still want to enjoy life, but I’d love to retire by 55, so anything that helps me plan for that is a big plus.
I usually have about $2.5-2.7k left at the end of the month, which feels like a lot. Any advice on whether refinancing is a good move or other tips on how to manage my money better?
r/PersonalFinance has a helpful wiki on financial planning
r/TheMoneyGuy has a solid financial order of operations
r/DaveRamsey has a well-known plan for debt management
r/YNAB (You Need A Budget) offers a free trial and great budgeting advice—many say it’s life-changing
r/MrMoneyMustache has a savings rate chart and good advice on living frugally
r/Bogleheads offers investing advice
Also, look into the different stages of FIRE (Financial Independence, Retire Early), like LeanFIRE or CoastFIRE if you’re thinking about retiring early.
If I were your age, I’d focus on maxing out my Roth IRA for the first few years. Compound interest is incredible, and starting young will make a huge difference. Try playing around with a compound interest calculator—it’ll blow your mind!
@Fin
Yeah, I was thinking the same thing. I feel like I could put more into my IRA and maybe only invest a small amount in stocks each month, like $10-20.