My situation: Longtime reader finally giving in and asking the community for help. I'm currently 24 and just moved out from my parents' house into a rental in Baltimore. I'm having doubts about my situation, so I was hoping some more experienced mustachians could help me assess my situation and allay my fears.
Now, my financial situation is relatively good, and I plan on keeping it that way. An outline:
Assets:
$5k cash
$30k in high yield savings account (CapitalOne360)
$11k in a high-yield savings account that only my parents have access to (leftover college savings; scholarships mitigated a lot of those costs. They will probably only grant me access in the event that I buy a house or have a medical emergency).
$16k in 401k (split between my old and new jobs' 401ks)
$10.5k in Vanguard Total Stock Market Index Fund (all VTSAX)
$8.5k in Vanguard Roth IRA (all in Target 2055 Retirement)
Debts:
$10k on a 2012 Toyota Camry, purchased new in May 2012 (dumb, I know, but at the time I was commuting in DC traffic with a dying clutch and panic and prodding from my parents convinced me to buy new).
Income:
$2500 gross per pay, on the nose.
$500 goes into my 401k per paycheck, and after taxes my net pay is about $1400.
Approximating to 2 pay periods per month, this comes to about $2800 net income each month, with a bonus 3rd paycheck twice a year.
Fixed monthly expenses:
$800/mo rent
$30/mo for phone
$300/mo for car payment (just under $10k left on loan at 2.24%)
$8/mo for Netflix (this technically counts as my utility bill contribution, everything else is included in rent)
$100/mo for car insurance
$50/mo for gas (highball estimate; 1.3 mile commute to work, usually a weekend trip to visit a friend or family once or twice a month)
$50/mo for various hygiene essentials (soap, haircuts, dry cleaning, etc)
SOON TO COME: $4400 tuition per 2-class semester for Masters program, twice a year. This will begin either this spring or next Fall, depending on if the classes I'm looking at are filled before the college approves my enrollment. It's all reimbursable by my company, but I do have to pay up front and get a B or higher before I get the money.
Total: $1,338 (Soon to be 2071 when the academics kick in)
Typical discretionary expenses:
Restaurants: $80/mo
Dates: $100-$150/mo (This is for me covering both my and my gf's meals/tickets/entertainment when we go out. Other than that, we share no expenses.)
Video Gaming: $50/mo HARD MAXIMUM. I'm a nerd, but I do keep it in check.
Alcohol/Bars: $100/mo (I should really try to reign this in, I know. I'm a sucker for trying new beers.)
Public Transit: $20/mo (I take the light rail or bus whenever I know parking will be a pain where I'm going)
Miscellaneous fun: ~$100/mo. This is a rollercoastery category; sometimes I spend none of it, sometimes I'll blow through $150 on a weekend in NYC. This is more or less a "treat yo'self" category.
Total: About $475
Grand total of expendatures: $1813 ($2546 w/tuition)
Takehome after expenses: ~$900 (~$170)
Now that we have all the basic information out of the way, my big question: What should I do with that big hunka change in my savings account? Obviously a good chunk (I was thinking $10kish) should be dedicated emergency money. I was tentatively planning on buying a house a few months back, but embraced the wild world of renting to maintain flexibility (I don't know if I'll want to stick with my current job after I gradutate from my Masters program). The old "throwing money" adage does keep creeping into my mindset though -- would it be implausible for me to buy a live-in rental and save more money that way? Am I best off sinking the money into wiping out my auto loan and freeing up another $300 a month that I can direct towards my retirement accounts? Should I throw $20k into VTSAX and forget about it? Some combination of the above? I feel like I have a world of possibilities before me but I'm overwhelmed. An impartial eye would go a long way toward helping me make a rational decision in this matter, so I welcome any and all input from the community.