MT advice for 25 year old

Engineer myself and I will just share a few simple thoughts.

1. Was told at about your age it isn't about how much you invest but about how soon you start investing. While it is also about how much you invest, the point the person was trying to make was to not wait to start investing.

2. Personally, I would max out my Roth and never go less than a 10% match on my 401k. I would cut expenses before I would drop below 10%. (Really need a $21k car note).

3. I hate paying rent, but homes are expensive in that area. I know large towns are attractive after college, but if you have job opportunities in areas with lower cost of living and can have debt paid and more money saved, it makes living in a large city more enjoyable.

Great job on the no CC debt. Best of luck to you.

i'd make paying off the student loans my priority. you have a ton of disposable income right now, and that is only going to diminish as you get married and start a family (if you go that route). i'd shoot to pay at least $1k/mo. i'd also consider using the $10k in savings to make a large payment if your job is relatively secure. i had large student loans, and paying them off was the best feeling. the house can wait. you're so young and i assume unmarried. better to keep the flexibility of renting imo.

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Max hsa if you have one

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Should have added this to my advice... great point.

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Health Savings account you lose it. (Why i don't contribute, but i will be off my parents in a year)

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That would be a Flexible Spending Account (FSA); HSA’s carry over and can turn into essentially retirement accounts later in life.

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That would be a Flexible Spending Account (FSA); HSA’s carry over and can turn into essentially retirement accounts later in life.

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Find out if your employer health insurance is a high deductible health plan (HDHP) and offers an HSA. If it's not an HDHP, then you probably will not be elibible for the HSA and its associated benefits (not to be confused with the FSA described above... it may be called something else like a Health Spending Account.. different than a Health Savings Account).

If eligible, now is the perfect time to dump money into the HSA (savings) account while you are young and at low risk of having medical expenses. I wish it were available to me 15 years ago. See what the investment options are within it and max it out if you can (within the context of the other advice in this thread).

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I hate paying rent, but homes are expensive in that area. I know large towns are attractive after college, but if you have job opportunities in areas with lower cost of living and can have debt paid and more money saved, it makes living in a large city more enjoyable.

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Not that I know much about Atlanta, but $850/month seems very reasonable for rent. I mean a very average single bedroom apartment here in Mandeville would go for about $950. If you're talking something nice, over $1k

You're in a good situation. My only advice is to automate your retirement investments (and at least some of your taxable savings, too). Set up automatic monthly bank transfers to your roth, don't try to handle it 'randomly.'

With your salary, I'd also make a big effort to max out your 401 and roth.

We need to make a post that lays this out for anyone your age. Financial well-being at your age is a very formulaic process where there is a pretty clear pathway of do A/B/C/D in this order.

Don't worry about home ownership for awhile. Your total housing expense is less than $1K right now and you maintain the flexibility of neighborhood changes and/or job mobility if you desire.

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Currently keep 5k in checking and 10k in savings.

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That seems very reasonable.

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Contributing 7% to a 401K

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You definitely want to do enough to get your full match on the 401k.

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I have a 21k car note i'm paying on, and 20k in student loans that i'm currently paying 400 a month on @ 4.2%. (about 15k paid off in the last 3 years)

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I would focus on retiring the student loans, first.

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Paying 850 for rent in Atlanta area.

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I assume you figure to be moving a lot until you get settled in your 30s. That's fine. When the family time starts, you will feel compelled to buy a home. I would start saving that downpayment now. You can do that, to a degree, with a ROTH IRA.

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randomly put money in a vanguard roth that is at 3k

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You're young and ahead of the game, so this is not criticism - you need a plan outside of "randomly" - something you can stick with. If that's $20 a paycheck, fine. Do that until you can commit $30 or more. Ideally, you are putting 15 to 20 percent towards your retirement. That's a habit that will have you at least realistically planning retirement (if not actively contemplating it) in your 50s while your peers are sweating out if they can live until SS kicks in.

The difference is made now - with compound interest - and time in the market CANNOT BE MADE UP in your 40s and 50s. Your contributions will just get higher and higher to try to meet your goals then, when starting now would have made it all so simple.

Not An engineer but started out in oil and gas at 25 and put in 8-10% and have had a 8% match my entire career.
You will be fine on the path your on keep your 401k maxed out don’t stress out over a car note or the school debt but try to get school paid out in the next 3-5 yrs. Each year spilt your raises into thirds 1/3 long term savings 1/3 short term 1/3 hookers and blow. Jk on the last but use it for cost of living an better living. Don’t focus on retirement and building wealth so much that you miss on on the good stuff for the next 25yrs. If you continue excel in your career and do not get laid off do not get any debt other than House and car and don’t marry a big money spender or get a divorce you will be sitting pretty at 60.