help making a plan
Hello everyone. I often read the advice here, but have only posted once. I would like some advice about where to start with my savings, considering my personal situation. I am really a newbie to the financial world, so I will just lay it all out there. That seems to be the best thing to do for the most exact advice.
I moved back to the US from Europe in the summer, and have my first "real" job in the US. I'm 28 years old and am currently making 32,000 a year; this will change to 37,000 in August. Starting in August I can begin making contributions to a TIAA-CREF, with a 5% match from my employer. I live with my boyfriend, who is working and in graduate school. We are getting married in a year or two. We would really like to move back to Spain in about 3 or 4 years.
My partner and I each contribute 50% of our paychecks to a shared account, from which we pay all of our bills. We pay $550 in rent, about $60 dollars a month on gas and electric, $400 a month on food/fun, and $210 a month on our car loan, which is for 5 years with a 7% interest rate.
I have no credit card debt, my partner has about $2000 with a 5% fixed interest rate. We both make student loan payments, but I know this is "good" debt, and don't worry too much about that.
So, my questions:
1) We have $1000 in our joint savings account as an emergency fund- but the interest rate there is so low. Should we move that to a money market fund, or something else? We are adding to that $1000 each month.
2) I have about $3000 extra dollars on hand, and from now on each month I should have about an extra $700. What would be the smartest thing to do with it? Pay off a chunk of the car loan? Help my partner pay off his credit card? Open a Roth IRA? Save it to invest in the TIAA-CREF in August? Cut down my student loan debt?
I am sure I am forgetting some things, but that should be a good start. I really appreciate any advice you can share with me. Gracias!
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