I grew up poor, receiving zero education on personal finance. I have an offer for a position that pays more money than I have ever had and I would like to get a firm handle on my finances.
I am 23 y.o. and set to graduate university next May with BS Computer Science. I have accepted a job offer where my net salary is $42k as a Software Developer in the Midwest and this will increase considerably over the next 3 years. I know that it will increase because this is a Fortune 100 company with structured performance reviews at regular intervals that allow for increases.
My only source of debt is a student loan balance of $17k and I want to pay it off as soon as possible. I’m in the process of saving $5k for a used car that I will drive into the ground. I do have plans to max out my 401k and Roth IRA in the future but I want to build a 3-month emergency fund (~$5000) first.
Finally, here are my expenses: My girlfriend (2 years) and I will rent an apartment not too far from our respective jobs and evenly split the following expenses: Apartment, Food, Utilities, Cable/Internet and Entertainment. So, for example, we each put in $500/month for a total rent of $1000/month.
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Expense: Per Month/Per Year
Student Loan: 500/6,000 (total loan balance = $17,000)
Food: 200/2,400
Entertainment: 150/1,800
Utilities: 150/1,800 (gas, electric)
Cable/Internet: 30/360
Apartment (includes water): 500/6,000
401k: 190/2280 (contribute enough to get company match)
Vacation: 200/2,400
Gas: 170/2,040 (workplaces are very close, so we share commute)
Car Repairs: (used car) 125/1,500
Phone: 70/840 (my employer might give me a work phone, so I may not need this)
Gym: 30/360
Car Insurance: (new driver, < 1 yr) 200/2,400
Total expenses: ~ $2,545/$30,530
Remaining: ~12k
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If I receive my year-end performance bonus (~ $3,750 net), then I will put all of it towards my student loan. Also, since I have 7k unaccounted for (after e-fund), I may put a few thousand more towards the student loan.
Is this a good approach? Could I use my money more wisely in certain areas? Am I over/undershooting any expenses? Any advice is appreciated.