Hi everyone,
I’m 25 and work in the restaurant industry. I make around $4,500 a month, which I know is solid for the hours I work. I didn’t go to college, and this has been my main source of income so far.
Here’s my current breakdown:
• Rent: $1,200
• Car payment + insurance: ~$700
• Fixed expenses total: $1900-2000
• Remaining each month: ~$2000ish
I do save some money, but I’m very aware that I spend too much on daily stuff like eating out, daily coffee, random $30–$40 days that add up fast.
My goal isn’t just to save more but to eventually leave the restaurant industry and create another income stream that gives me more flexibility.
I’m looking for very concrete advice from people who’ve been in similar situations:
-With this income and expense structure, what would you prioritize first: aggressive saving, investing, or building a side income?
-Is it smarter to focus on building a larger
cash buffer before experimenting with side projects?
-For those who successfully left service industry jobs, what financial milestone made you feel safe enough to plan an exit?
-Are there spending habits you wish you had cut earlier because they felt harmless but slowed everything down?
Thanks in advance for the help
25 y/o making ~$4.5k/month in restaurants — how would you optimize this to eventually exit?
byu/Stunning_Lab_1450 inpersonalfinance
Posted by Stunning_Lab_1450
8 Comments
I’d recommend building an emergency fund (6 mo expenses, in a HYSA) and putting everything you would invest right now into skills/education. You’re doing ok, but you could do a lot better with the right degree/skills–engineering, nursing, law, sales will all pay a lot better than what you’re making now, but you need to be credentialed.
Learn the difference between good money and bad money.
Hang around investment forums and pick things up.
Start investing, dont listen to any YouTubers who are going to make you rich.
Maybe spend a couple of k and seek the advice of a professional financial advisor.
Ohh
And don’t listen to strangers on Reddit.
Definitely start investing. But invest wisely and keep some ready for a rainy day. 4500 is a fantastic income for no college great work but maybe look into something more secure. I’m not sure how secure or how long you want to be in the service industry (but that’s just me now knowing the industry)
My suggestion is put like 50% or more of what is left at the end of the month into registered investing account, put like 85-90% of what you save into stocks like XEQT or VFV, and put the remaining percent into bonds or a CASH stock that’s a little Less risky
Whatever you don’t invest put into a high yield saving account to be used for rainy day funds or goals
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I feel so bad that medicine cannot keep up, I wish my mid levels made this
Follow this sub’s prime directive.
>Here’s my current breakdown: • Rent: $1,200 • Car payment + insurance: ~$700 • Fixed expenses total: $1900-2000
How much do you spend on health insurance each month?
Dave Ramsey baby steps. Not that you are in debt, but lays out the basics very clear. They work really well in your phase.