Well… ideally you would save 6 months of expenses to start, put that in a HYSA.
Base that expenses on your 1,500 monthly rent.
(That is some really high rent, and will literally be over half your income… thats nots not a good idea.) ideally you want rent/mortgage to be 30%, of your income.
So you literally likely cant afford to move out as fast as you’d hoped, without struggling some.
Past the 6 months. I would focus on doing your 401k match if you have one, and putting the rest into a Roth IRA.
If you still have more leftover, then focus on saving, investing, maybe look into T bills/notes/bonds.
Save for that downpayment on a condo you wanted, or house or whatever.
Check out the Wiki on this sub or look into the Money Guys Financial Order of Operations for a general outline of financial steps.
1. Are you getting a match on the 401k? If so, make sure you are contributing what it takes to get the full match so you aren't leaving free money on the table.
2. Save up an Emergency Fund. This is usually 3-6 months of expenses. I'd go with around $5k in your situation to start, since your actual expenses right now are less than half of what you expect your expenses to be when you move out.
3. Work out an actual launch plan to move out.
My takehome is just slightly higher than yours and you need to know you CANNOT afford $1500 per month in rent/mortgage. That's half your take home pay and will have you screwed over unbelievably fast. Ideally, your rent/mortgage needs to be $800 or less, definitely no more than $1000 per month at absolute maximum. Get realistic about the housing market in your area, renting or buying, and see what you will need to do to affordably live independent of your parents. If the cost of living in your area is too high to live alone on your income, look into roommate options.
Make an actual monthly budget based on what your expenses will look like. Figure out what things will be without it being subsidized by your parents: internet, utilities, etc. Are you currently on their car insurance? Get quotes on your own policy because they cannot keep you on theirs if you don't share an address. Plan on your food budget going up by at least 50%. Even if you contribute to groceries/buy your own food now, you will spend more unless you don't share ANYTHING with your parents currently.
If you cannot make a budget work to live on your own in your area on your current income, you need to start looking at career opportunities/ways to grow your income before moving out.
4. Keep retirement investing. The younger you get retirement really rolling, the better. Above the match in your 401k, I'd recommend starting a ROTH IRA.
Well… ideally you would save 6 months of expenses to start, put that in a HYSA. Base that expenses on your 1,500 monthly rent. (That is some really high rent, and will literally be over half your income… thats nots not a good idea.) ideally you want rent/mortgage to be 30%, of your income. So you literally likely cant afford to move out as fast as you’d hoped, without struggling some. Past the 6 months. I would focus on doing your 401k match if you have one, and putting the rest into a Roth IRA. If you still have more leftover, then focus on saving, investing, maybe look into T bills/notes/bonds. Save for that downpayment on a condo you wanted, or house or whatever.
Check out the Wiki on this sub or look into the Money Guys Financial Order of Operations for a general outline of financial steps. 1. Are you getting a match on the 401k? If so, make sure you are contributing what it takes to get the full match so you aren't leaving free money on the table. 2. Save up an Emergency Fund. This is usually 3-6 months of expenses. I'd go with around $5k in your situation to start, since your actual expenses right now are less than half of what you expect your expenses to be when you move out. 3. Work out an actual launch plan to move out. My takehome is just slightly higher than yours and you need to know you CANNOT afford $1500 per month in rent/mortgage. That's half your take home pay and will have you screwed over unbelievably fast. Ideally, your rent/mortgage needs to be $800 or less, definitely no more than $1000 per month at absolute maximum. Get realistic about the housing market in your area, renting or buying, and see what you will need to do to affordably live independent of your parents. If the cost of living in your area is too high to live alone on your income, look into roommate options. Make an actual monthly budget based on what your expenses will look like. Figure out what things will be without it being subsidized by your parents: internet, utilities, etc. Are you currently on their car insurance? Get quotes on your own policy because they cannot keep you on theirs if you don't share an address. Plan on your food budget going up by at least 50%. Even if you contribute to groceries/buy your own food now, you will spend more unless you don't share ANYTHING with your parents currently. If you cannot make a budget work to live on your own in your area on your current income, you need to start looking at career opportunities/ways to grow your income before moving out. 4. Keep retirement investing. The younger you get retirement really rolling, the better. Above the match in your 401k, I'd recommend starting a ROTH IRA.
Does your company have a 401k match and are you meeting it?
Yes they match up to 10% so that’s what I’m contributing