24yrs old, New job.. now what?

[CoryWM]

So far what i've done.

Created 3 ING Direct accounts.
House Savings
Emergency Fund
Car Fund

I have a normal checking account, and savings.

So far I've gotten 1 Paycheck, 20 dollars went into the fun savings. and 250 went to my car loan principle. Also this paycheck will come out cell phone bill and actual car loan payment.

My plan is to pay down my loan first. Then split money off into my emergency fund/house/car fund.

[anonymous_saver]

Originally Posted by ItsDubC

Ya I've always felt that 3 months-worth of living expenses in my checking account was a lot but that's one thing my parents have always adamantly drilled into my skull haha. I'm always afraid of being in a situation where I have to transfer funds out of my savings account to cover unforeseen expenses, so that's why I keep that much in checking. I may reconsider, given your advice.

As for the ING subaccounts, I was thinking of having one for a house, a car, and miscellaneous (which would include things such as entertainment and leisure expenses). Are those good categories to start with?

I think those accounts are fine!

The only addition I would have is that an Emergency fund is probably the most important. I would try to fund 1 month to start off with, then you could start putting extra money towards those other goals as well.

My personal goal is to eventually have 6-8 months of an emergency fund (my goal is to have 3 months by the time I have a house though).

By the way, I would try not to use the Emergency fund for leisure/entertainment expenses. If you ever find yourself wanting to, I would create another subaccount.

Good luck saving!

[Ini_g]

Excellent Ideas my friend.

You are smart to think in future. Maybe you may took a look with some other plans for retirement that the common. Now, you are young, maybe you can take a look to a new investments and begin to practice, but just with a little amount of money.

The major question is: Do you want to work all life?. Whic age will be perfect for your retirement.

Then with the goals, you can elaborate a best plan.

[ItsDubC]

I just started an Emergency subaccount at ING Direct and will start the other subaccounts another month. The reason being that I've already made a number of transfers to my ING account this month and any transfers between subaccounts count towards the six withdrawals-per-month federal regulation on savings accounts. Just take that into consideration when allocating funds amongst subaccounts every month.

[corns]

1. do not gamble. i learned the hard way by gambling all my fortune away and landed myself in huge debt.
2. do not invest in "high yield investment program". i fell for these scams because greed took over my mind.

[cptacek]

Do you have direct deposit of your paycheck? If so, you might be able to put a set percentage in your ING account and the rest in your working checking account. My employer allows up to 6 accounts that my check will be deposited in, but it is a set dollar amount instead of a percentage. You might create a "holding" account in ING that this is deposited into, and then transfer the money from there to the other accounts...it might be easier to keep track of that way.

You've gotten some good advice, and it seems like you are taking it (not everyone does). Don't forget about the rent, including set up expenses for the phone and electricity and water (depending on the apartment you choose, there may be up front costs to moving in)...make sure you budget that now instead of having to scrimp when the time comes.