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Any idea how to fix this?
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Any tips for being more patient, in general?
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Get the 401k match, save at least 10-15% for the future, and then pay off those student loans quickly with the rest. Once paid off, you can take the equivalent of your student loan payments and invest it for virtually no decrease in your quality of life. Good luck!! 😁
Do whatever has the highest ROI in terms of managing interest rates and where you get free money (e.g., 401k match)
High interest rate debt first, then 401k match, then either investment accounts (with tax advantaged priority) or low interest rate debt depending on your rates and risk appetite
I think it makes more sense to take the 401k match before doing high interest debt because you’re earning 100% on your money.
25. Similar order to what C1 described but I like prioritizing all debt first. I think getting the 401k match and throwing everything else at the student loan debt is the way to go. Starting with a basic emergency fund though (2-3k)
True, especially if it’s high interest debt. I was just saying if your monthly expenses are say $5k then $2k ain’t going to do much when you’re in an emergency so you should save at least $5k. That’s if you literally have no other savings to pull from at all. The mentality should be changed from $X to X amount of months of bare bones expenses.
High level approach that should work well for you because I was in a similar boat:
Emergency fund in HYSA or Money Market Acct (1-2 months based on your risk tolerance), high interest debt (10%+ interest rate), emergency fund (additional month), loans (with interest rate > 5%), more towards emergency fund if you need the financial security or start contributing big on investments, and after that any loans sub 5% since you can get savings that pay around the same almost nullifying the interest charged but more liquid cash.
Feel free to reach out if you want a referral for a HYSA or Money Market acct we both get a referral bonus :)
I put 30% into savings, 3% into 401K, buy one SPY share each paycheck (2 monthly), money into my brokerage, I have a whole life insurance, then I have a savings fund for a tesla in the future, furniture, future car insurance, and travel. I end up saving or investing 55% of my income.
Yessir go get that Tesla!
Depends on the interest rate on the loan and what your short term plans are. If you have a very high rate I'd focus on paying down the loan. But if it's relatively low like 3% then you could just put minimum payments towards the loan and then invest in a savings account that will yield 4-5%.
The way I've been allocating my income is by putting 6% towards my 401k (maximum company match), the minimum payment towards my student loans (2 loans, 4.45% and 3.25%), maxing out Roth IRA (550/month), 50% leftover cash into high yield savings account (4.75%), other 50% leftover cash to an individual brokerage account (Robinhood).
If you're trying to save up for a down payment on a home you could move more of the leftover cash towards the high yield savings account instead of a brokerage account.
Yeah there's an IRS limit of 6.5k. 550x12 = 6600. So in December you'd just have to put 450.
Also 24! I do 8% 401k for employer match, max Roth IRA, and do $500/month towards student loans (min payment is $350). Have about 10k in an emergency fund, and I put $400 towards building that each month as well
My bare bones expenses each month are about 2k, so I'm closing in on 6 months of emergency fund
22. I recommend a HYSA any with a 4%+ to get some monthly interest like American Express. Once you have that sorted with consistent weekly or monthly deposits that you set automatically, then focus on your ROTH. You can even have your interest pay for your student loans!
You can also start creating a spreadsheet that could be a little complex but have it calculate everything for you. Have it take money out of your paycheck and deposit it to each respective category. Then you can create other savings accounts with money your gonna use to travel, expenses, rent or mortgage.
I personally split my money between 3 different accounts so its seperate and im not going off budget.
Im 23 on 80k - expenses each month are 1.5k. I put 500k in roth IRA and 500 in my brokerage. rest go to emergency/cash savings account. Also 300 to 401k monthly
You mean 500 in Roth lol not 500k right
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FOLLOWING HARD! I just turned 24 lol, what im doing is maxing my 401k, to help me increase my tax return, and everything else is going to my HSA or Roth IRA if not it’s going my car payment ((-: #TeslaModelS gang, but pay off your student loans! Biden is a liar lol.
Join the investments, finance bowl!
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Invest Invest Invest now, reap the benefits later. Make monthly repayments on your student loan, or defer it.
best financial advise is to invest in yourself and if you get married make sure you are both net positive and growing / thriving together to buy a home you can see yourself or just rent out. Your home is typically x2-3 worth more than all your 401k savings!
I’m 23 on an 85K salary. I don’t get a 401K match my first year but I put 5% in my Roth 401K anyway. I have heavy student debt, I pay $900 a month in student loans and will be paying for 8 years. HCOL so high rent also.
My goal is after rent/food/student loans (60ish % of my paycheck) to split the rest 30/30/30 between spending/saving/investing. Honestly I’m not there yet but that’s my goal. I probably spend and save too much and invest too little, so some goals of mine are to get auto-invest and auto-save set up so I can see how much is left in my checking to spend.
My investing, id like to have a 80/20 split between various mutual funds (I’m all in the S&P500 right now, looking to diversify), and bonds (i bonds). So far have about 5K in stocks and 4K in bonds, so plan to keep buying stocks until the ratio gets where I want. My savings all go into a high yield savings account in a separate bank from my checking account, so it’s harder to access my money. I’ve got 26K tucked away there now. I’m trying to save for a house down payment with my partner so I’m still pretty far off.
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