Newly Debt Free - Where do I go from here?
23f and spent the past year wiping out student + car loans. Now that I’m not throwing every penny at debt I’m a little lost trying to figure out what to do with my money going forward and would appreciate some advice.
My net income is $3660/month, $1830 every 2 weeks. I live at home and pay the household internet and utility bill in addition to my own bills. Right now I match a 3% employer contribution to my 401k. This is what I’m working with:
- car insurance $217 ($1300 every 6 months)
- $90 gas
- $104 phone
- $100 utilities
- $92 internet
- $20 subscriptions
- $350 grocery
- $50 misc
- $40 toll tag
This leaves me with $2597 a month
Here are some things I know I should do: set aside money for car maintenance, set aside money for a future car purchase, make an emergency fund, max out a Roth IRA, increase 401k contributions, invest in a brokerage account.
Here are some things I want to start doing: tennis and dance classes, traveling
The only major upcoming financial commitment I have is splitting the purchase of a 3rd, “backup” household car with my mom. This car will be a Honda civic or Toyota Prius and won’t be purchased for at least another 1-3 years
Finally, I will have a 4 month emergency fund by the end of the month. This amount does not include rent ($1560) since I don’t pay it, but I am wondering if it would be prudent to add this expense in.
How would you budget for these goals with the amount that I have to work with? What should I prioritize?