So I've got a lot of goals currently and am feeling like I'm overwhelming myself and not able to do all of them.
Here's what I want:
-Individually save 15% of my gross income in my 401k (Currently saving 10%...my company also puts in 10%, so I need to do 5% more myself. Current 401k balance: $20k)
-Max out my ROTH IRA (Opened one two months ago..currently doing 200/month...plan is to raise it to 416/month starting 2/2014)
-Save $20k for a house (or condo) ($15k would be downpayment on a home around $65k with a 15 year mortgage, plus an additional $5K for closing costs and initial furnishings). Plan is to have a roommate once purchased to pay the majority of the mortgage. Currently have $0 saved for this.
-Save to buy a car cash (10k) - Currently have $0 saved for this.
-Have an emergency fund equal to 6 months of expenses, which is $7k (Currently at $1k)
Here is what my revised budget will look like in order to get me to these goals IN 36 MONTHS, which is my preferred timeframe:
student loans 300
electric 40
cell 50
groceries/household 150
transit card 100
laundry 30
extra 5% into 401k 250
rent+gas 873
car 275
house 550
me 150
travel 150
roth ira 416
emergency fund 166
Total: 3500 (Net monthly income: 3500)
A couple of notes:
-Single, age 34 (turning 35 in two months), no kids, no car currently
-Living in Chicago area...planning to move back to Atlanta suburbs in about 3 years (would need a car there)
-Currently renting a 500 sq ft studio that's about a 45 minute commute to work
-"Me" category is for things like: eating out/drinks, going out with friends, cab fare, hair appointments, gifts (usually at work), clothes, etc.
-This is a planned budget, so to get to this the cut backs I'd still have to make at this point would include reducing cell phone plan, cancelling my cable, cutting grocery expenses in half, and limiting travel to once a year holiday visit to my family in South Carolina
A couple of questions:
-Does this seem like a realistic budget?
-Between the 15% to the 401k and maxing out the ROTH IRA, am I putting enough towards retirement?
-Should I save more than $5k out of the $20k for house-related stuff (furnishings, closing costs, unexpected expenses, etc.?)
-If in 3 years when I'm ready to purchase a home, I would like to put more down than the $15k I've saved, would it be wise to use funds saved from my ROTH IRA or 401k by chance (feel free to slap me for asking this question lol)?