19F trying to get my finances together… what would you do in my situation?
I just turned 19 a few days ago and I’m looking for some financial advice. I want to set myself up well early, but I’m not really sure what I should be prioritizing right now.
I moved into a one bedroom apartment in March. It was kind of a quick decision because I had to move for a job. I originally planned on renting with a friend, but they backed out and I couldn’t find anyone else in time. I ended up taking a one bedroom for $1,250 a month. That includes everything, which is decent for my area, but still expensive for me.
My total monthly bills come to about $1,638. That includes rent, insurance, phone bill, subscriptions, and other fixed expenses. I don’t have any debt besides a credit card I’m using to build credit, and I pay that off every month. (rn it’s been hard to pay off)
My income:
About $1,200 per paycheck
About $2,400 per month without bonuses
My last bonus, my paycheck came to about $1,400
My most recent paycheck with bonus came to about $1,900
Sometimes I may not get a bonus, so I try to base everything off the $2,400 just to be safe.
After bills, I’m left with around $700–$760. Then I still have:
Gas: about $150–$200 per month
Groceries: about $300–$400 per month
So after everything, I don’t have much left over.
My boyfriend stays with me a lot and we split groceries. He does send me about $500 a month- he originally offered to pay half of rent, but I chose to live here and it’s my place, so I feel like I should be able to afford it on my own. I don’t want to become dependent on him financially. That’s also something I could use advice on, like how to handle that situation.
Right now I want to:
-Build an emergency fund
-Save and put aside money for a new car
-Start investing
-Still have a little spending money (especially for my NASM course)
I recently opened a Fidelity account and started a Roth IRA. I put $50 into my Roth IRA and about $20 into an individual account just to start and learn. I know it’s not much, but I wanted to start somewhere.
I’m locked into a one year lease, so I can’t really lower my rent right now. My plan is to hopefully move somewhere cheaper or get a roommate when my lease ends.
So I guess my main questions are:
-What would you do in my situation?
-Should I focus on building an emergency fund first?
-Should I still invest small amounts?
-Is my rent too high for my income?
-How much should I realistically try to save each month?
-And how should I handle the situation with my boyfriend helping financially?
I’m trying to build good financial habits early and just want to make sure I’m doing things the right way. Any advice would really help.
I’m kind of on my own with this stuff, I don’t have many connections with family or people to go to for advice so I thought I’d ask the reddit fam 🙂
Young and trying to get my finances together… what would you do in my situation?
byu/Mission-Clock5037 inpersonalfinance
Posted by Mission-Clock5037
2 Comments
You listed those priorities pretty well. Good start! And AWESOME that you’re putting thought into this now, and esp at 19YO.
Read. A lot. Don’t try to time any market or investments. You’re starting so early you have tons of time on your side. And while flashy people have made gobs quickly, those are the exception rather than the rule. Don’t let the flash drug you into making some rash decisions.
Compounding is your friend. Put whatever you can away (but don’t forget to live 😉 and let time work for you. Your putting away small bits as you can, at your age and income/expenses is spot on.
Feedback on what you wrote above – you’ve started off well. Total monthly including rent $1600-ish? On ~50k/yr net? You’re right where you should be IMHO.
Let your boyfriend pay his half of the rent. He wants to, and you’re making things harder on yourself by refusing. If you feel ‘you should be able to afford on your own’ then take his portion of the rent and put it in savings for a rainy day.
Second advice (basically following the wiki) is you need a budget.