I've been lurking around GRS for the past few months and have fallen in love. Your community is awesome: interesting, motivating, knowledge building. I thought I was doing a good job before I found GRS because I used mint and was aware of my current state. I now realize I have a lot of work to do if I would like to reach my financial goals.
I thought this would be a great place to hold myself accountable, organize my thoughts and track my progress. Hopefully I'll be able to bounce some ideas off others as well.
I am 24, single, and a bit over a year into my career. I am finally settling into my permanent assignment and will be relocating for it next month. I'm very excited to re-do my fixed expenses because I fell victim to lifestyle inflation with my previous move as you will see with my breakdown below.Current State:Assets:
Freedom Fund: $935 (cash savings for vacation, etc)
Roth IRA: ~$1500
Mutual Fund: ~$3500 (hopefully this will be for a down payment on a home)
My Roth and Mutual fund are both set up through an Edward Jones broker and are in the american funds mutual funds. I haven't touched them since they were set up when I was 18. I would like to transfer them over to fidelity accounts where my employer has our 401K plan. I would like to get the money out of actively managed mutual funds(american funds) and put them into either ETF's or funds that just track indexes and are not actively managed.Liabilities:
Student Loan balance: $2381 @ 6.8% (actively working to assassinate this bugger)
Credit Card: $400 - Paid of in full each month. I use my card for day to day expenses for points and I get paid monthly so I'm able distribute my savings/expenses when I get my check without having a large balance after I'm done.Budget:
Income: $3250/mo after tax, 401k contributions and insurance
401K Contribution: $666 - woah, never did the math on that one not a nice number to come out to ($476+$190 match)
Food: $420 (includes groceries, restaurants, and lunches)
Gas: $120 A large part of my job includes driving so work gas is reimbursed so I struggle to keep track of this number
Misc/Fun: $450 (Includes bar, entertainment, clothes, etc)
S-Loans: $250Remaining Monthly Balance: $580
I have been breaking even or having small surpluses (<$100) each month so my budget needs to be re-worked and after I get settled in my new job and home it will be. Right now it seems the extra money goes to gas, food, beer, and weekend activities.
Now I know I am paying waaay to much for rent, I would like to get that number down below $1000 and I need to figure out something else for cable. However, being young, single and moving to a town where I know very few people I put a lot of priority on location of apartments. I want to be around lots of people like me in a hip part of town where I do not have to drive if I go out to the bar(DUI = fired). I think the only way I'm going to be able to accomplish this is either finding a steal on criagslist or getting a roommate.Future State:
I will get some money with my relocation which I plan to use to kill my student loan, get some second hand bedroom furniture (time to get my box spring off the floor and get a proper dresser). After that I should have some money left over to kickstart refunding my mutual fund, IRA, and freedom fund. Which brings me to my future state goals...Goals:
Build E-fund to 10K - $150/month
Begin funding Roth IRA - $100/month to start
Build freedom fund to 2K - $100/ month
Build 30k down payment for house in 3 years - $100/month to start
All that totals $450/ month so after I kill my student loan and if I reduce my rent to under $1000 this is a feasible plan which I will automate.
Here is the part where I hold myself accountable:Action Items
-Find out more about edward Jones Fee's and cancel if they are unreasonable
-Find out if I can set up Roth and mutual funds with fidelity for free or small fee
-Find perfect apartment for under 1k per month
Wow, that is long winded and disorganized! I hope you guys made it all the way through... and those that did THANKS!
I appreciate any and all comments/input. Feel free to be brutally honest with me... I do better with harsh realities and things that aren't sugarcoated.