I have finally paid off my credits cards ($8k) car ($16k) and personal ($6k), so I have all this free money and need help giving it a place to go.
2 major goals – emergency fund and contributing to a Roth IRA.
I’m 33 and finally taking my finances seriously. I have a 401k but not much is in there.
Income – $3600/month take home
Bills
Rent – 1450 including water
Utilities- $120
Phone – $136
Car insurance -$100
Spotify – $12.71
Apple Space – $3.08
Expenses
Gas – $100
Groceries- $300
Personal – $100
Home – $50
Savings
Travel ???
Gifts ???
Travel ???
ER fund ??
Investing ??
Where should my money go????
byu/Maleficent-Access760 inpersonalfinance
Posted by Maleficent-Access760
2 Comments
Get the full employer match on your 401k, then fully fund Roth IRA ($7500 annual or $625 monthly). Total retirement contributions between 401k and Roth IRA should total 15% of your gross income. The rest into emergency fund until it’s 3-6 months of expenses. IMO gifts and travel sinking funds do not get funded until your emergency fund is fully funded.
Step one is get 6months of living expenses into a HYSA. Then do some research while your saving to figure out how to invest in a Roth IRA