I’m finishing my bachelor’s degree debt-free this December. I already have a June–July internship lined up that feeds into a full-time role paying around $70k/year. The internship itself will pay about $8k over two months.
Current situation:
• Monthly income (now): \~$1,000
• Monthly expenses (now): \~$500
• Current savings: \~$3,000
By graduation, I expect to have $10–15k saved. Post-graduation:
• Monthly expenses: \~$900
• That’s roughly \~20% of my take-home pay
Plan once full-time starts:
• Max employer 401(k) match (5%)
• Fully fund a Roth IRA
• After that, I’ll still have roughly $3,500/year available to save/invest
I’m very fortunate that my parents put me in a position where my expenses will stay low for the first year or two after graduation, and I want to take full advantage of that window.
Goals:
• Build a strong long-term investment base
• Save for a future mortgage
• Save for a dream car (S197 Mustang, 6-speed)
Ovc the mustang is taking the back seat but it’s still something I’d like to save towards
What kind of percentage split would you recommend between:
• Cash savings (house/car)
• Taxable investing (index funds, etc.)
• Any other buckets I should be considering early on?
Mostly looking for general allocation advice rather than exact picks. Appreciate any insight.
About to graduate debt-free, how should I split savings vs investing early on?
byu/Kitchen-Instance-398 ininvesting
Posted by Kitchen-Instance-398