Hello all. Thank you for taking the time to read over my situation, and offer any advice that you may have.
I am currently a 19 year old sophomore at a large public university. I am studying actuarial science and economics if this is relevant. Below is my current financial information:
Roth IRA: ~$5,000
Checking: $9,200
Student Loan Debt: $12,500 (covers first 4 semesters) at an average of 4% interest rate.
Rent/Parking/Utilities: $925/mo
I have no other monthly expenses, but I must pay for food/gas/clothing and anything else that I may need. I just started tracking my expenses, but my estimates right now are:
Gas: $70/mo
Food: $250/mo
Entertainment/Dates: $75/mo
Household needs/other shopping: $100/mo
Total Expenses: $1420/mo
I am about to start an internship making $28/hr which I will work about 12 hours a week. This is flexible, and could work 6 more hours a week if I would like, but I am also taking 17 credit hours, so I'm not sure how much time I will have. This will provide ~$1,100/mo in income.
Part of the reason my checking is so high is because my financial aid was just dispersed, so ~$4,700 is money that was just awarded. I plan to use this to cover the $925 in rent for the next 5 months which school is in session.
I would like some advice from you guys regarding if you think I should be doing anything differently.
1. How much of an emergency fund should I keep? I know the default is 3-6 months expenses, but this is typically said about people which jobs that they depend on to sustain themselves.
2. How aggressively should I be paying on my student loans right now? I am not required to make any payments until graduation, but most of the loans are unsubsidized, so interest is accruing. I just recently paid off $330 in interest that had accrued over the past 16 months, but would like to know if this is of more importance right now, or if contributing to my IRA/Savings would be more optimal.
3. Is there anything about my financial situation that is alarming, or anything I should change?
4. What would you do differently if you had started your journey earlier? I want to start as early as possible towards a path to financial independence, so any advice is greatly appreciated.
I have been lurking for a few weeks, and this is my first post so if anything is wrong or if I need to give more information, please let me know.
Thank you!