| Category | Monthly amt. | Comments | Annual |
| Salary/Wages | $3,917 | $47,000 | |
| 401(k) / 403(b) / 457(b) / TSP /etc. | $200 | Room to increase? | $2,400 |
| Federal Adj. Gross Inc. | $3,717 | $44,600 | |
| Federal tax | $371 | 2014 rates, stand. ded., 1 exemption | $4,448 |
| State/City tax | $204 | Guess, using 5.50% * Fed. AGI | $2,453 |
| Soc. Sec. | $243 | Assumes 1 earner paying | $2,914 |
| Medicare | $57 | $681 | |
| Total income taxes | $875 | $10,500 | |
| Income before other expenses | $2,842 | $34,100 | |
| Monthly Expenses: | |||
| Miscellaneous | $1,200 | $14,400 | |
| Non-mortgage total | $1,200 | $14,400 | |
| Loans: | |||
| Student Loan | $296 | $3,547 | |
| Car | $296 | $3,547 | |
| Total Expense | $1,791 | $21,494 | |
| Available for taxable investment: | $1,051 | $12,606 | |
| Summary: | |||
| "Gross" income | $3,917 | $47,000 | |
| Income taxes | $875 | $10,500 | |
| After-tax income | $3,042 | $36,500 | |
| IRA+401k+ESPP+529/other | $200 | $2,400 | |
| Living expenses | $1,200 | $14,400 | |
| Non-mortgage loans | $591 | $7,094 | |
| After-tax investable | $1,051 | $12,606 |
Sorry forgot to answer the car question. The car is a necessity for the job. Also I tend to travel a bit for the job (which is reimbursed, but still). I probably should have gone for an older, used one. Foolish purchase at the time I guess.
I would sell the car and get a much cheaper car, and put the rest toward the student loan. I think you have to earn your comfort. Maybe once you have paid off your student loans and have no car debt, then you can rent a studio. But if you can rent a room for 900, that's an extra 300 you could be investing a month. For compounding your age is your most valuable resource.
I would say that my main issues are spending money on clothes (first year at this job, so i've REALLY revamped my wardrobe), spending money every day on lunch (lets say between $7-10) and occasional weekend outings. I do not have a set consistent amount I spend every weekend, but tend to stay in more than I go out anymore. I will splurge on other things such as sporting events ($200 for an NFL game the other week). I will probably eat out 2x a week for dinner. Other nights, I am an absolutely miserable cook, but will eat cereal for dinner if i have to.
One question I cant seem to make sense of: Why does it not make sense to invest in Mutual/ Index funds? Is that not where I want my $$? Sorry if that is a dumb question. I thought the 5200 in the mutual fund was a good idea.
If you prioritized your savings to the student loan, how long would it take to payoff?
I understand the benefits of the IRA, but if I contribute to that I can only take out my earnings and not my contributions (without penalty), right?Generally speaking, no, you can't make penalty-free withdrawals from a Traditional IRA at all (whether your contribution or the growth).
Thats why I chose to go the mutual fund route.I think you meant to say "That's why I chose to go the taxable brokerage account route."
I figured I could snag all of that $5200 whenever I needed it.I think most people here would advise that you not consider your tax-sheltered accounts (whether IRA, 401k, whatever) as something you can draw on outside of an extreme emergency. Most of us highly value the favorable tax treatment these accounts provide, and we wouldn't want to diminish the relatively small amount that we can put in them (because of the yearly contribution limits).