Quote:
Originally Posted by jIM_Ohio
You need to know your income- net is $1700, guessing you gross about $30k per year. List income in terms of gross, as some of retirement savings options are pre-tax (like 401k).
Investing in a 401k up to the match is a good place to start (for retirement savings) and adding a Roth is a good step to continue. It is probably not going to be enough, unless you verify a few things.
1) Look to save 20% of gross pay per paycheck. Put 15% to retirement and another 5% towards house savings. Then learn to live on 80% of gross (which might be 50% of net).
If 401k is 6%
can you put 9% into a Roth (if you gross $30k then another $2700/year into Roth would be 9% of gross pay).
2) Learn how to invest money and understand the risks involved with the choices you make.
3) Always focus on spending less than you earn, and as you get raises, maintain the percentages and risks listed above.
If you have questions- ask them in this thread.
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I don't think its necessar to save 1/5 of your income in the initial stages. Right now, your expenses must be high and aiming to save that much will just put pressure on you.