Two 21 year-olds - Are we making the right choices?

[ArmyNavyBrats]

Hey everyone! My fiance and I are both 21 years of age and would like to know if there are any other ways we can more effectively invest and build our wealth. Everyone tells us that us starting young is awesome so we are trying to soak up all the money management knowledge we can. When reviewing the information below, please keep in mind that our wedding will be paid for 100% by my fiance's parents and the honeymoon paid for 100% by my parents. A BIG ONE: Our college tuition is already been paid for by our parents. Lastly, we have No Credit Card Debt.

Below are our current situations:

ME
Monthly Net Income
1) $1,493.00 (This is after taxes and after payroll deductions, such as a 401K: Monthly 401K Contribution = 6% of pre-tax income / Current Balance = $669.00)

Monthly Expenses
1) Fixed living expenses: $957.74 (includes $305 rent, $5.06 renter’s insurance, $50 utilities, $48.30 cell phone, $49.25 basic cable/internet, $250 car payment, $50.13 auto insurance, $125 groceries, $75 gas.)

2) Monthly Entertainment / Misc. Spending: $170.00 (Whatever I spend here is paid for on a credit card so that I can build a good FICO score, and it is paid off in FULL each month. If I do not spend the entire $170 one month, the remaining balance is put into the emergency fund savings account.)

3) Roth IRA:Monthly Contribution = $70.00 / Current Balance = $660.00

4) Savings Account for House Down Payment: Monthly Contribution = $110.00 / Current Balance = $410.30

5) Emergency Fund Savings Account: Monthly Contribution = $180.00[ / Current Balance = $6,169.54


Additional capital:

Checking Account: $1,258.34 (I only leave a small balance, enough to pay the fixed bills, since the savings accounts receive higher interest.)


MY FIANCE
Monthly Net Income
1) $1,800.00 (This is after taxes and after payroll deductions, such as a 401K: Monthly 401K Contribution = 6% of pre-tax income / Current Balance = $10,044.00)

Monthly Expenses
1) Fixed living expenses: $1,065.61 (includes $305 rent, $5.06 renter’s insurance, $50 utilities, $48.30 cell phone, $49.25 basic cable/internet, $323 car payment, $60 auto insurance, $125 groceries, $100 gas)

2) Monthly Entertainment / Misc. Spending: $180.00 (Whatever she spends here is paid for on a credit card so that she can build a good FICO score, and it is paid off in FULL each month. If she does not spend the entire $180 one month, the remaining balance is put into the emergency fund savings account.)

3) Roth IRA: Monthly Contribution = $70.00 / Current Balance = $667.25

4) Savings Account for House Down Payment: Monthly Contribution = [$230.00 / Current Balance = $445.40

5) Emergency Fund Savings Account: Monthly Contribution = 250.00 / Current Balance = $2,980.83

Additional Capital:

6-Month CD: $2,016.45

Checking Account: $1,200.00 (she only leaves a small balance, enough to pay the fixed bills, since the savings accounts receive higher interest.)


TOGETHER
Stocks: $1,200 invested / Current Market Value = $1,039.99 (We are no longer contributing to these, but the stock is in DRYS, CY, GM, F, URRE, STP.

[jIM_Ohio]

If you are married, start measuring things as one income, one expense.

Make sure 401k+Roth is 15 percent of GROSS income. I think you are short of this now.

Add 5 percent of gross to short term savings.

Keep this 15/5 plan regardless of one income or two, and regardless of raises or job loss.

Spend less than you earn from this point forward and you should o OK. Measure savings based on pre-tax numbers, because things like 401k make 10 percent of gross look like 6 percent of net... there are many other tax savings you can find in this regard (health care, child care are two common ones).

[Seeker]

In addition to what Jim says:

1) I'd recommend saving 6 months of expenses and putting together an emergency fund.

2) Anything extra each month, I'd put into the house fund. Seems like that's a future goal that probably should be a priority after you've got the EF accounts setup.

[anonymous_saver]

(1) I would say that each of you should get a credit card. Only to use and to help out your FICO score. Make one purchase a month, and pay it off that same month.

(2) Stop putting money into the combined stocks thing. First, you guys are engaged, and until you are married, I would keep things seperate. Second, you have other savings that should probably have much more priority than this. For example, what are each of your car loan rates at? It doesn't make much sense to be putting away money into a General Savings Account that is likely earning you tops 2.5-3.0%, when you are probably paying more on your car loans. Pay off your car loans as soon as possible if the rate is more than your General Savings Account (which by the way, do you have it ina high interest online banking account?).

(3) When you have a 6 month emergency fund, start putting that money towards increasing your down payment fund.

(4) So your "basic" cable costs almost $100? That sounds insane to me. Is there a way to choose a cheaper option? Could you guys also get one of those family cell phone plans to save some money? The cell phone bills sound fairly high to me too.

(5) The two of you are certainly doing well, but I would suggest that if one of you could feasibly take public transit to work and get rid of one of your cars that would be an excellent idea. Save a ton of money, and get going on your goals much faster.

Good luck!

[ScrimpAndSave]

From a person who has recently had a broken engagement...please do keep things separate until you are married.

[ArmyNavyBrats]

ScrimpAndSave:

Hey! Thank you for taking the time to check out our posts. You'll be happy to know that the only combined financial aspect of the two of us is the couple stocks we invested in. All other accounts are 100% separate.

Thanks again!

[Alex_Adviser]

Examine employee benefits
As you both work, examine the benefits you each have at work to see if making changes will save you money or improve your rewards.

For example, does it cost less for each of you to have your own health insurance, or would you save by switching to one employer's plan? Likewise, all 401(k) plans are not alike. If one spouse's employer matches a higher percentage of contributions, you may want to invest more heavily in that plan.

Regards