Help with Finance

[Roupey03]

Ok so I just recently graduated college and have started my first full time job. I need a little bit of help with my finances. From my internship during school I was able to save a little bit of money.

I have currently:

Checking 2k
ING Savings 5k
Ohio Public Employee Retirement fund 5k

Car I paid for in cash.
I am currently living at home.
My school loans are about 19k at 4%. Which my payments are 115 a month.

My monthly expenses right now are:

Student Loan 115 a month
Car insurance 100 a month
Gas 100 a month roughly.
Cell Phone 10 a month.
Plus any misc costs I have and fun I want to have.

My pay looks like its going to be roughly 550 a week. With Overtime on some rare occasions.

My only plans the possibility of moving out and getting my own place and buying an engagement ring for my gf of 3 years. I plan on spending 2k for that.

Any Advice?

[safari]

Is your pay 550 a week after taxes or before taxes? What is the average monthly rent in your area?

When you move out, you'll have many additional expenses that you're currently not paying because you're living with your parents. I will list just some of the major ones:

- Electric/water/gas bills
- Landline phone
- Cable
- Internet
- Food
- Miscellaneous items (toilet paper, shampoo, etc.)

You'll need to buy furniture for your new apartment and other stuff. Also, don't forget to save for retirement. Is your gf working? You'll need some help with the bills.

[Roupey03]

My pay is 557 a week after taxes and everything is taken out

And yes the GF is working. She makes about 350 to 400 a week after taxes and everything is taken out.

I just realized I meant to put this in the personal finance forum. Sorry Guys.

[humandraydel]

Advice?

Continue to live like "a poor college student" for a couple of years
Save and invest as much as possible (it's MUCH easier when young!)
Consider a Roth IRA
Do not pay off the student loan early (it's cheap debt!)
Start living within a budget now so it becomes a good habit.
Pay your credit card off in full every month. Save for large purchases.

Oh, and congrats! You are in a pretty good financial situation for just graduating. I don't know many that came out of college with 7k in cash and a paid for car!

[genmed]

Your probably going to get a few different opinions -- mine is:

You've done a great job so far. Congratulate yourself!

Before you move out, try to figure out/"estimate" what those expenses are going to be
Rent/Mortgage $xxx
Groceries $xxx
Fun $xxx
Student loans $xxx
Come up with a budget and try to live within it -- that way it won't be such a shock when you move out. Keep in mind no budget will be "perfect" before you move out and actually know what those expenses are, but at least you'll be a bit better prepared.

The extra money you don't need for things like Rent, etc. put towards savings (the ring, a Roth IRA, and wedding expenses/house downpayment) and paying off your student loan debt asap.

I'd think about saving for the following:
(a) Engagement Ring
(b) Roth IRA/Retirement
(c) Future expenses such as: Wedding expenses?, Downpayment for house?, New car? You might not know exactly what these are yet, but they will come up and having the money will be nice when you do.
(e) Emergency Fund

Maybe focusing more heavily on the emergency fund and engagement ring in preparation to move out. You'll always have unexpected expenses (car repairs, etc.) and having some extra money in the bank just for the expenses would be great.

Although the student loan is "cheap debt" as the previous poster has said... that's still 10% of your income and your still paying a lot of interest on that money -- about $60 a month. See if you could pay double payments and get it paid off as quickly as possible while your expenses are low. Then you'll be one of the few without debt. I have a few student loans and I'll tell you getting them (student loans) paid off is a GREAT feeling.

Good luck to you.

[Roupey03]

I believe my interest rate for the student loans are 4.5%.

I was considering opening up another online savings account that has a higher rate than ING. I have also been looking at Vangaurd to start a mutual fund. I am not really concerned about another IRA for now. I have one already with 5k in it that I can add to when needed.

Do you have any recomendations for Vangaurd Mutual funds or starting another Online savings account?

[Ima saver]

I have a vanguard Index 500 account for many years and I am very happy with it.

[kv968]

I was considering opening up another online savings account that has a higher rate than ING. I have also been looking at Vangaurd to start a mutual fund. I am not really concerned about another IRA for now. I have one already with 5k in it that I can add to when needed.

Do you have any recomendations for Vangaurd Mutual funds or starting another Online savings account?

I have an account with GMAC which currently has a APY of 5.30%. I don't know how long the rate will last but I've been happy with them.

What is the 5k you already have in a Roth invested in?

[project15]

Well, the thing about a Roth IRA or any retirement account, is that the more you put in at a young age, the more time it will have to grow. It's better to continue to put money into it now than start putting money into it again when you're 30 or 40.

[humandraydel]

I am not really concerned about another IRA for now. I have one already with 5k in it that I can add to when needed.

No offense, but why ask for advice if you don't even give the advice consideration? Nearly everyone on this board would suggest a Roth IRA and to start saving regularly for retirement. Do you know the advantages of a Roth?

[mom-from-missouri]

I'd continue to live at home as long as possible, BUT, I would suggest you give your parents at least $200 a month as a token for your rent, laundry, water and other utilities. I'd double up on what payments I could first, and get them knocked out of the way.

[Vapors]

My wife's friend got married 5 or 6 years ago to a guy who lived with his parents for I think 7 or 8 years. He was able to buy their first house with the cash he had saved. So if you can take living with them a while, I would keep doing it =)

[Roupey03]

I have heard stories like that. I dont think I want to live with my parents that long. However I do plan on living with them atleast 6 months to a year. Making what I do now that should allow me to save quite a bit.

I was just considering a vangaurd fund to increase my return rate on the money I am saving.