I was lucky enough to get a remote offer for a software engineering job that pays 90k annually, after I graduated this December, and I just want to have the validation of others to make sure I'm doing this right. I've been following the flowchart and the wiki. I might be switching to another job that pays 110k and a 7% 401k match but I'll make a different post about that lol)/
Just some information about me if it matters (I want to lay it all out to see if there is anything someone recommends changing):
- I am a 22m that is still listed as a codependent, I currently live with my mother at a relatively LCOL area (Florida) with no state income tax.
- Growing up, my family has been on the lower income side. Making lower that 50k a year.
- Graduated college debt-free with a computer science degree
- My father passed away 5 years ago and the house is currently under my name, but my mom just pays it every month
- My car insurance, health insurance, utilities, phone bill, and grocery bill is covered by my mom.
- My main expenses:
- Gym membership ($18/month w/ $60 annual fee)
- Weekly volleyball sessions ($28 monthly fee)
- Bills:
- Been covering the internet bill for the house ever since college (for some reason lol): $90/month
- Pay mom monthly rent of $300
- Monthly take home pay after taxes(I get paid biweekly): About $5.5k
- Pay after my expenses are taken into account: 5073
- My only credit card is: Chase Freedom Unlimited® Credit Card
My plan:
- I want to be financially stable and go on trips with my girlfriend
- HYSA (w/ Wealthfront): I have 2.5k in it. Will contribute money until it reaches 8k-ish. Using as my emergency fund.
- Traditional 401K: Employer doesn't offer any match. I want to to try to reach the limit 23.5k. If I don't switch jobs, I will have to put roughly 2k a month into my 401k.
- HSA: Can't have one because I am under my moms insurance (?)
- Roth IRA (w/ Fidelity): Max out Roth IRA for 2024 and 2025 ASAP. Invest 100% into VTI
- Once I reach my HYSA and Roth IRA goals:
- I want to save $1k a month and put towards a travel budget so i can travel with my gf around Japan once she graduates this may. This money will just be put in my HYSA, but I'll just keep track of it.
- Put the rest of my extra money into HYSA into I get to this point and decide what to do it later (don't want to plan to much to overwhelm myself and things can change). However, I will limit myself to only using $500 dollars a month on hobbies/personal items, but I doubt I'll spend this much because volleyball/watching TV/video games/gym is my main source of enjoyment.
- Always have 4k in my checking account
Things I think I could change / Questions I have:
- Change internet providers (?). It seems like my promo has run out and they have slowly increased the bill ever since
- Do I need to increase my HYSA? I live with my mom currently so I'm not sure how the 3-6 month of expenses apply to me? I don't plan on staying here for a long time, so might as well build it up?
- Because I am under my mom's insurance, I'm not eligible for a HSA right?
- Should I change my 401k to Roth or should I keep it traditional? I hear that most people do traditional 401k and Roth IRA.
- Is there a credit card that I should using or should I be opening more accounts to get more benefits?
- I worked at my internship last year that made me over 10k, that means I can contribute to the 2024 IRA fully right?
Any advice is welcomed, and thank you in advance! My family isn't financially literate so I'm just trying my best to prepare myself for the future. I know its a lot information, and I appreciate anyone that takes the time to read it. If there is a more appropriate place, please redirect me :))
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