. . .. you didn't post your expenses, which is probably why people aren't biting. It's hard to give advice when just the high lights are given. Some ideas
Alright, here are my expenses as budgeted currently:
Net monthly income (2 regular paychecks, no night shifts or OT)=$2750
Rent=$480 (just moved- we are house sitting for a professor for a year- all utilities included)
Car insurance=~$65
TV=$50 (I budget $50 in my spread sheet but it is actually closer to $20. After going 1 year without any cable, we stupidly got into a 2 year contract with a satellite company when I started working. We hardly use it and have it down to the cheapest package, but we will cut it in a year when the contract is up)
Food=$140
Gas=$250 (this is the killer, when we moved into this lovely house for such cheap rent it made my commute go from 7.5 miles to 30 miles. We have only been here just under a month so this figure is a generous estimate. For this month it looks like I will only hit ~$180)
Emergency=$250 (this is my catch-all category... lately with car trouble and moving expenses, I have been going over...)
Fun=$200 (includes eating out, etc. I hardly ever max this out)
Savings=$1315
ETA: You will notice I do not budget for a phone. I currently have a dumb phone that is still on my parents' plan. This will change soon and I will be looking into very cheap options.
I think it really sounds like you are off to a great start. Have you looked into maybe starting some side jobs for extra money? It's a great idea if you have free time!
Thanks, that's good to hear! I have started looking into it. I work in healthcare, 2nd shift 5 days a week. I'm trying to figure out the logistics of adding a per diem job at another hospital. Because of our schedule differences, I don't get much time with my SO so I'm really not digging the idea of routinely giving up my 2 days off a week. I should also add that while house sitting, we are caring for the professor's dog and HUGE lawn at a discount of $200/month rent.... this takes time and I guess is sort of a side job. I do cover night shifts and get OT when it is offered at work to increase my salary. This isn't terribly often, though.
You are off to a great start! If you want to learn more about investing, I recommend Andrew Tobias's The Only Investment Guide You'll Ever Need That will help you decide where to put your house downpayment savings (and, I recommend that you anticipate buying your next car out of those savings too if your car will need replacement in the next 5 years).
I like putting my E Fund into my Roth because I can withdraw principal without penalty and it keeps it out of reach enough that I would never count on it to use towards non-emergency spending. Although you don't have a withdrawal penalty, you do lose your opportunity to make a contribution that year. (e.g., if you contribute in 2013 and 2014, and withdraw those principal amounts in 2015, you can never put the money back in a s your 2013 and 2014 contribution). Because you will also have your actual savings somewhat accessible, and that looks like it would be significant, I would put your E Fund into a Roth.
Thanks for the suggestions and book recommendation, I will definitely look into that! The book that I read 8 months ago that got me started budgeting and saving was Suze Orman's The Money Class. It was a good starting point, but I find myself wanting to learn more.
Balance these based on your house purchasing timeline.
+1 on being so financially mature @24! Good on doing the 403b. I agree with smalllife that you should max it out, assuming the funds, yearly charges, and expense ratios are decent. If you post that information, you will get opinions there too
I should note that I am actually contributing to my 403b as roth right now. Should I not be?
Also, should I really focus on contributing so much beyond my match to the point of not being able to invest in other ways? If I max out my 403b ($17500) that eats up almost all of my annual savings and I can't touch it for 40 years...
Emergencies do happen so IMO keep saving up to your goal of 8 months expenses.
If your vehicle will need to be updated, save ahead for it; then, when it is time, you pay cash. I would do this ahead of your Roth because car expenses can be a big downer financially. I know you are Jonesing to invest; that is good, but you need to batten down the household more before entering the financial world more. Besides, you will have a fully funded 403b!
Are you experiencing household budget and fun expenses creep now that you are working and making good money? Since your SO is still in the student life, pretend you both are and keep your expenses low. When he gets a job, try living on his income. Hell, just keep your expenses low and be like MMM.
Thanks for the advice, I think I will work toward the full 8 months in cash savings especially since a new-to-me car is on the horizon.
For a couple of months after I started working, I did experience fun expenses creep. I bought a new TV, we locked into a 2 year satellite contract, etc. Luckily after only a few months I wizened up. I personally get much more joy and exhilaration out of saving. SO and I split most mutual expenses 60% me, 40% him. I do most of the shopping and spending so I really do try to keep costs low because he doesn't have much money to work with. This is good because it in turn keeps me from spending too much on a whim just because I can.