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How much money should I be saving from my monthly income?
Posted on 3/23/17 at 8:43 am
Posted on 3/23/17 at 8:43 am
I just got a new job and I'm looking at apartments, so I'm trying to determine what my max rental rates should be. In order to do that, I'd like to have a safe figure of how much I should be saving each month.
Let's say, for example, I make $5.5K a month. After monthly expenses, how much should I safely have leftover?
And I don't know if this helps, but I am in my mid-20s, single and no kids.Thanks in advance for any input
Let's say, for example, I make $5.5K a month. After monthly expenses, how much should I safely have leftover?
And I don't know if this helps, but I am in my mid-20s, single and no kids.Thanks in advance for any input
10
Posted on 3/23/17 at 8:47 am to oncealurker
Strive to save 12-15 percent and put into a 401k or other retirement savings. As for rent, I would stay under $1350 and make that your maximum amount.
Posted on 3/23/17 at 8:50 am to Paul Allen
Awesome, thanks!
Posted on 3/23/17 at 8:50 am to Paul Allen
If your next task will be saving for a down payment on a house, you should save every penny you can find. The 12-15% rule works if you have your financial foundation and the first few big steps of your financial life in place.
Posted on 3/23/17 at 8:51 am to oncealurker
First critical question is if the $5,500/month is gross or net. If net, you need to immediately start maxing out Roth. Plan on retiring by age 50 hoss!
Posted on 3/23/17 at 8:56 am to TheBoo
quote:
f your next task will be saving for a down payment on a house, you should save every penny you can find.
Good point. Where you live is the next biggie question. Followed by job security. If you're planning on being there longterm - at least seven years - buying should be a top item. I still say max out Roth first, though. At your income, you can easily do that and still save for downpayment.
Posted on 3/23/17 at 9:00 am to rpg37
Any more details you could provide me on how much I should be putting in a Roth? I'm a youngster so this is all new to me 
And I really appreciate the advice.
And I really appreciate the advice.
Posted on 3/23/17 at 9:23 am to oncealurker
The most you can contribute to a Roth is 5.5k per year. You should do that.
Are you contributing to the full 401k match of your employer?
Are you contributing to the full 401k match of your employer?
This post was edited on 3/23/17 at 9:26 am
Posted on 3/23/17 at 9:28 am to oncealurker
- max roth IRA
- match employer 401k match
- another 10% to personal savings or investments
you should be able to do this easily with your salary as a single guy
- match employer 401k match
- another 10% to personal savings or investments
you should be able to do this easily with your salary as a single guy
Posted on 3/23/17 at 9:33 am to Epic Cajun
If you're just starting your financial base, start with saving for these goals in order.
-Match employers 401k contributions if any.
-Save 2-3 months reserves
-max Roth IRA $5500/yr.
-pay down any debts highest interest rates first.
-build to 6 months liquid reserves
-increase percentage towards 401k
-start savings for big items ex. (house, car if you need a upgrade at some point, and vacations.)
-Match employers 401k contributions if any.
-Save 2-3 months reserves
-max Roth IRA $5500/yr.
-pay down any debts highest interest rates first.
-build to 6 months liquid reserves
-increase percentage towards 401k
-start savings for big items ex. (house, car if you need a upgrade at some point, and vacations.)
Posted on 3/23/17 at 9:44 am to HYDRebs
I would move vacation savings up the list. It is very difficult to stay the course if you do not take an occasional vacation and treat yourself. If you already have that money set aside, you won't feel guilty for splurging a little on yourself.
Posted on 3/23/17 at 10:04 am to oncealurker
Anything you don't put in retirement savings now will just be spent by your wife when you get married.
Posted on 3/23/17 at 10:40 am to Weekend Warrior79
quote:
I would move vacation savings up the list. It is very difficult to stay the course if you do not take an occasional vacation and treat yourself. If you already have that money set aside, you won't feel guilty for splurging a little on yourself.
This. Travel the world. Once you begin to take on my responsibility, it becomes much more difficult.
Posted on 3/23/17 at 10:50 am to oncealurker
Not to hijack the thread, but I'm in a pretty similar scenario as OP. I know there are topics on it, but I want to try and max out a roth for the 2016 tax year as quick as possible before tax day comes, because I may be priced out after 2017 income is said and done.
Best way to do it? I've seen a lot of Vanguard stuff. Is it is simple as just going to the site and saying take my money? Or should I hire someone to select the best options for me?
Time sensitivity is really my only issue because I'm looking to file my taxes soon.
Any quick advice is much appreciated.
Best way to do it? I've seen a lot of Vanguard stuff. Is it is simple as just going to the site and saying take my money? Or should I hire someone to select the best options for me?
Time sensitivity is really my only issue because I'm looking to file my taxes soon.
Any quick advice is much appreciated.
Posted on 3/23/17 at 11:33 am to Epic Cajun
No hijack but most people in here have said to max Roth and match 401k.
Am I doing it wrong by putting in 15% to 401k with company match 6%, and only 5% into Roth?
Am I doing it wrong by putting in 15% to 401k with company match 6%, and only 5% into Roth?
Posted on 3/23/17 at 11:38 am to Zoltan
quote:
Is it is simple as just going to the site and saying take my money?
Pretty much, as long as you have an account open. Fidelity offered me the option to contribute for 2016 or 2017 when I did my 2017 contributions on Jan 1.
Once the money is in the account, you can choose an investment plan that meets your needs.
Posted on 3/23/17 at 2:04 pm to Zoltan
quote:
Not to hijack the thread, but I'm in a pretty similar scenario as OP. I know there are topics on it, but I want to try and max out a roth for the 2016 tax year as quick as possible before tax day comes, because I may be priced out after 2017 income is said and done.
Best way to do it? I've seen a lot of Vanguard stuff. Is it is simple as just going to the site and saying take my money? Or should I hire someone to select the best options for me?
Time sensitivity is really my only issue because I'm looking to file my taxes soon.
Any quick advice is much appreciated.
Last week, I walked a friend of mine through setting up a Vanguard account, setting up a Roth, selecting a fund, and setting up a transfer to said fund.
Maybe took 10 minutes.
If time sensitivity is an issue, just sit down right now and do it. Shove it all into the Vanguard Target Retirement 2060 Fund (VTTSX). You can always move it into something else later, but this gives you instant diversification into, practically, every stock and every bond on the planet.
Posted on 3/23/17 at 2:43 pm to Joshjrn
Read the sticky. We have covered this topic a million times.
Posted on 3/24/17 at 7:23 am to oncealurker
Do you desire financial independence? Does early retirement appeal to you? If so, the answer is as much as possible.
Posted on 3/24/17 at 9:07 am to SCndaBR
quote:
Am I doing it wrong by putting in 15% to 401k with company match 6%, and only 5% into Roth?
Does your 401k have better funds, ER's, etc. than ROTH? doubtful. Max the ROTH. You have way more control with a ROTH.
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