[jIM_Ohio]

Originally Posted by MaverickSB

Hello-

This is my first post on this forum. I recently graduated college with a BA, and am in my firt year of work at a software development firm. I am always stressing about money (who isn't). I would like to list my current financial situation, and see if anyone has any advice to areas I can trim, invest more, etc.

Welcome

Originally Posted by MaverickSB

Investments:

-401K- I invest 6% of each check (max matched by emplyer)
-Roth IRA - I just opened this, $100/month auto withdrawn for now.
-Stock Purchase Plan- Given company stock at 15% strike price, I devote 5% of each check to this.

The stock might be a good deal. I might consider dropping this to 1% and adding more to a Roth.

Originally Posted by MaverickSB

Debt:
Installment: $3,100 of student/personal loan debt.
Credit Card Debt: $200.00 (I pay all balances in full).

Note sure what loan is for, consider paying off with commissions once Roth is fully funded (4k for 2007 and 5k for 2008).

Originally Posted by MaverickSB

Savings: I have $5k in an HSBC online savings at 4.75% that I keep for an emergency fund.

Because your income fluctuates month to month, consider upping this to around 6 months expenses.

Originally Posted by MaverickSB

Income: Pre-taxed: av. 56-60k annual. I work in sales so this varies, my base salary gross is $2,750/month. Comm. usually doubles or triples that, depending on how well I do, although I also have a month or two where I make very little.

You have an "income risk" you might want to protect against. Consider holding more cash because income fluctuates.

Originally Posted by MaverickSB

I rent. No home ownership yet. My car is cheap, only $2,800 in value, which I will be selling. once sold, I will take out appx: 15k loan and buy a 2002-2003 car and run it into the ground. I hate debt, but I need a car and have a decent commute.

Keep out of car debt if possible. Get a second used car. Drive one car into ground and keep the second for use the day after the other one is buried. Car debt (even for a traveling salesman) should be avoided.

Originally Posted by MaverickSB

My monthy budget is this:

Rent: $850
Utilities: $100
Phone/Blackberry: $123.00
Loan: $135
Food: $360
Car Insurance: $110.00
Roth: $100.00
Netflix: $15.00
Gym: $40.00

Total: $1,833.00
If comm is Good, my post tax is 3500ish, if bad, is around 2400.

you have $1700 of surplus- where does this go? I would suggest $500 to a Roth any month where you can, plus keep the stock purchase to 5%, maybe increase 401k to 10% or so.

Originally Posted by MaverickSB

Basically, I want to know if I am off to a good start in "the real world." Should I invest more? Should I not take out an auto loan? Am I making enough money for a guy my age? Saving enough? Just looking to ease the worries.

Thanks.

Regards,

-Mike

The start is good, but keep in mind how you finish is just as important. Enjoy life now, and look to set aside around 10-20% of income for retirement or future spending.