In what ways could I improve my current financial situation? Also, am I on the right track?
Hey everyone,
I’m looking for some advice to see if I’m on the right track to financial freedom and how I can improve my financial situation. I’m 27 and want to make sure I’m managing my finances more effectively.
Here’s where I stand:
Assets:
- 401k: $48.7k
- Investments: $6.9k
- High-yield savings account (HYSA): $15.5k
- Emergency pet fund: $500 (building this up weekly)
- No debt!!!!
Monthly fixed-ish expenses:
- Rent: ~$1,400 (depending on utilities)
- Car insurance: $84
- Gym: $18
- Phone plan: $45
- Food, fun, misc: $400 - $1,000 (depending on the month)
Fixed savings:
- $800/month into savings (Once I reach $20k in savings, I’m planning to increase my retirement and investment amounts)
- $25/week going into emergency pet costs until I hit $2k
- $225/week auto-invested into a Fidelity account
- $200 every 2 weeks into company stock
- $323 every 2 weeks into Roth 401k (not eligible for match until August)
Income:
- Net pay: $1,880 every two weeks (this is after 401k, company stock, gym, insurance, and $768 in taxes)
- Gross pay: $3,230 every two weeks
Plans:
- MBA in the near future
- Maybe a house? (Work will help with down payment if I choose to relocate)
- Nothing beyond that
One thing I want to mention is that my "Food, fun, misc" expenses can vary month-to-month, but any leftover money from that category usually just goes straight into my savings. However if my misc spending is heavy that month, it impacts the final number I deposit for savings.
My biggest downfall is that I don’t track or budget beyond my monthly savings and expenses you see here. Nothing in detail. I don’t track any of that, I just fill out an excel sheet at the end of the month to see how I did that month overall.
I am also very proud of my progress. I started my 20s with a 12k car loan and 5k in credit card debt. Then, I stupidly bought a brand new Camry in 2021. Was finally able to pay the last of that dumbass purchase in August 2024. Don’t be me and buy a new car when you get a raise. Lifestyle creep will get you.
I know I could be saving more, but I’m just trying to get a feel for whether I’m managing things well overall or if there are any changes I should make. Are there other areas where I could optimize my savings or investments? Should I beef up my savings/emergency fund to accommodate the MBA expenses?
Any advice would be greatly appreciated!
Thanks!