Need advice on saving big - I am 30

[rhetoricalphd]

I bring home about $7,000 a month (with the exception of 2 months out of the year); My primary goal is to pay off my student loans and save (I am trying to do both consecutively). Right now, my total living expenses (including all bills - fixed and unfixed) are approx. 2000 per month. I put 500 a month into my betterment.com portfolio (70% stocks, 30% bonds), 200 a month into a Capital One 360 savings account, about 300 a month into a Way2save savings account; 360 a month goes into my 403b (my company contributes 615 per month -for a total of 975 a month).

I do rent out my home, but I don't make much on it - about 100 a month but rent covers my mortgage so it will pay off in the long run. I also never let my checking account sink below 1000 dollars. No car loan, no CC debt. I have some savings built up but nothing much - about 10k liquid savings built up. 33k in my 403b so far.

I pay 250 a month towards my loans (sallie mae) (the minimum is only $84) but I am paying extra to pay them off (6.55 interest rate and $12,757 owed). I also pay another 300 a month towards another student loan. I am focusing on paying off my sallie made loan which is $12,757

What else can I be doing to save money? where can I be putting my money other than the above? (or maybe I am doing a good job, not sure?) Also, any tips/ tricks to getting this Sallie Mae loan paid off quickly? Am I doing a good job? I am 30 years old.

[bjl584]

You're doing well. The only thing that sticks out is that you may want to be more aggressive with your one account. You are young enough to do a 80%/20% stock/bond mix. Maybe even 90%/10%.

Other than that, great job.

One question, you say you rent out your house? So, where do you live? Do you own a duplex?

[Petunia 100]

Sounds like you have about 3k per month not allocated someplace? If you throw that at your student loans, in addition to the payments you are already making, your 12.7k loan will be gone in less than 4 months. Why not do that and get it over with?

How much do you owe on your other student loan? How much on your mortgage?

What are your goals? You have a big enough shovel to become financially independent in 10-15 years. That's powerful, because once your nest egg is big enough to cover your basic living costs, you can do whatever you choose with the rest of your life.

[ua_guy]

Seems to me like you're doing well. You're doing right by nuking your student loans and also being able to save an emergency fund and contribute a steady stream to retirement.

As stated, your investment mix seems slightly conservative. I'll be 32 this year and I'm 90% stocks 10% bonds for the majority of my retirement funds.

Maybe post up a full budget so we can see where all the money goes? That might help spawn some additional questions or tips.

[rhetoricalphd]

You're doing well. The only thing that sticks out is that you may want to be more aggressive with your one account. You are young enough to do a 80%/20% stock/bond mix. Maybe even 90%/10%.

Other than that, great job.

One question, you say you rent out your house? So, where do you live? Do you own a duplex?

I live in apartment - where rent is a lot cheaper than what my house was. Rent is 700 a month

[rhetoricalphd]

Sounds like you have about 3k per month not allocated someplace? If you throw that at your student loans, in addition to the payments you are already making, your 12.7k loan will be gone in less than 4 months. Why not do that and get it over with?

How much do you owe on your other student loan? How much on your mortgage?

What are your goals? You have a big enough shovel to become financially independent in 10-15 years. That's powerful, because once your nest egg is big enough to cover your basic living costs, you can do whatever you choose with the rest of your life.

I use the extra for travel and I pay off the balance on my CC's every month (which is usually between 700 to 1000 dollars). I love saving but can't give up living life so I try to travel at least once a month (even if it is a road trip or a three hour flight). I just have a hard time reconciling putting all that extra money towards student loans !!! I know I should … thanks for the kick in the butt and advice.

[Permanent Temp]

I use the extra for travel and I pay off the balance on my CC's every month (which is usually between 700 to 1000 dollars). I love saving but can't give up living life so I try to travel at least once a month (even if it is a road trip or a three hour flight). I just have a hard time reconciling putting all that extra money towards student loans !!! I know I should … thanks for the kick in the butt and advice.

Trips are nice but not having that noose around your neck is better. You make a great deal of money so you wouldn't have to take a break from that for too long just about 4 months. How much is the other student loan? At that could you put the money you were putting toward Sally Mae to the other loan and get it paid off quickly?

Imagine how nice that trip would be without that debt weighing on you and it's not like you have to choose between that and saving, debt payoff, retirement or even buying a home.

[autoxer]

Why bother with the way2save savings account? The interest earned on that account is a fraction of what you are getting with capital one 360.

You seem to be doing a lot of good things, but if you define your goals a little better, you might be able to refine your plan a little bit. With loans at 6.55%, you might be better served to reduce how much you invest each month, knock out the loans quicker, and then increase your investing. You are also missing out on a tax deduction, by not contributing more to your 403b, but refining your goals will help you decide where to save. The most logical order to do things, according to the numbers would be to pay off the debt first, then max out the tax advantaged accounts (403b & Roth IRA), and then use an after tax brokerage account for additional investing. That is with a more longterm approach, but you have to make room for your short term goals. So what are your goals? Buying real estate? a car? a wedding or children? financial independence?

[Eagle]

I bring home about $7,000 a month (with the exception of 2 months out of the year); My primary goal is to pay off my student loans and save (I am trying to do both consecutively). Right now, my total living expenses (including all bills - fixed and unfixed) are approx. 2000 per month. I put 500 a month into my betterment.com portfolio (70% stocks, 30% bonds), 200 a month into a Capital One 360 savings account, about 300 a month into a Way2save savings account; 360 a month goes into my 403b (my company contributes 615 per month -for a total of 975 a month).

I do rent out my home, but I don't make much on it - about 100 a month but rent covers my mortgage so it will pay off in the long run. I also never let my checking account sink below 1000 dollars. No car loan, no CC debt. I have some savings built up but nothing much - about 10k liquid savings built up. 33k in my 403b so far.

I pay 250 a month towards my loans (sallie mae) (the minimum is only $84) but I am paying extra to pay them off (6.55 interest rate and $12,757 owed). I also pay another 300 a month towards another student loan. I am focusing on paying off my sallie made loan which is $12,757

What else can I be doing to save money? where can I be putting my money other than the above? (or maybe I am doing a good job, not sure?) Also, any tips/ tricks to getting this Sallie Mae loan paid off quickly? Am I doing a good job? I am 30 years old.

Welcome Rhetoricalphd!

Seems like we need more information to get a better understanding of where your money is going.

Income for May 2014: 7000?

What is your mortgage balance, monthly payment, and interest rate?

What were your monthly expenses for May 2014?
Rent/Mortgage: $700/?
Utilities: ?
Groceries: ?
Eating Out: ?
Entertainment: ?
Travel: $1000
Gas: ?
Car Insurance: ?
Cell Phone: ?
Internet: ?
Cable/Satellite: ?
Sallie Mae Loan: $250 (12.8k at 6.55%)
Betterment.com: $500
CapitalOne360 Savings: $200
Way2Save: $300
403b: $360
Other: ?

[jamiesmoneyadvice]

A Few Suggestions

You're doing ok with diversity. Make sure to keep a balance and don't let too much of your money get into any one bucket. Investing in businesses or private lending would be my next step.

[ESMonitor]

Rhet,

Sounds like you have a good plan in place. I would encourage you from my own mistakes in life to double down on paying off your student loans.

There is a fine line between saving loads of $$ or paying off loads of debt and having or not having a life in the balance. Only you know what that line is to you. Get your traveling in, to an extent, but make sure you still pay up on the loans. All things in moderation.

That's my suggestion if any help.

ES

[autoxer]

You're doing ok with diversity. Make sure to keep a balance and don't let too much of your money get into any one bucket. Investing in businesses or private lending would be my next step.

You don't need to invest in private businesses or private lending to have diversity. The OP's betterment account will provide all of the diversity they need.

[rhetoricalphd]

Welcome Rhetoricalphd!

Seems like we need more information to get a better understanding of where your money is going.

Income for May 2014: 7000?

What is your mortgage balance, monthly payment, and interest rate?

What were your monthly expenses for May 2014?
Rent/Mortgage: $700/?
Utilities: ?
Groceries: ?
Eating Out: ?
Entertainment: ?
Travel: $1000
Gas: ?
Car Insurance: ?
Cell Phone: ?
Internet: ?
Cable/Satellite: ?
Sallie Mae Loan: $250 (12.8k at 6.55%)
Betterment.com: $500
CapitalOne360 Savings: $200
Way2Save: $300
403b: $360
Other: ?

Thank you everyone for your information and help! I am new to this and I know saving is good but I feel like I have a surface level understanding of where to actually put my money.

I use the way2save account because it forces me to save my money without trying. Its an automata savings plan - so less for making money off of interest and more for a method of passively saving my own income. Every 3 - 4 months I am planning to take the lump sum and throw it towards my student loans. Right now my way2save account have 2000 in it.

Here is a little more information:

What is your mortgage balance, monthly payment, and interest rate? My house, for everything including taxes, insurance is 1200, my tents pay me 1300 a month. So everything house related is covered. (unless there is a repair thats needed - which isn't often)

For the month of May, I brought home 6300
For the month of June I will bring home 8300

Rent: $650
Utilities: 50 (the only utility we pay is cable and have the cheapest cable package possible- no gas, water or electric)
Groceries: 300
Eating Out: way too much! I can't get a fixed number on this - guesstimate = 400
Entertainment: 200
Travel: $1000
Gas: 200
Car Insurance: 500 every 6 months (I pay in full every 6 months)
Cell Phone: 90 a month
Internet: included in cable price - see above)
Cable/Satellite: see above
Sallie Mae Loan: $250 (12.8k at 6.55%)
Betterment.com: $500 (with a total of 6100 dollars in it as of today)
CapitalOne360 Savings: $200 (with a total of 1200 in it as of today)
Way2Save: $300 (with a total of 2000 as of today)
403b: $360 (my employer contributes 600 and some change a month)
Other: 200 a a month

THANKS FOR FORCING ME TO DO THIS!

I like the suggestions of having clearer goals, I am going to work on that today.

My betterment portfolio consists of investing in the following (although I have a very superficial idea of what all this means)

STOCK ETF'S

BOND ETF'S

[Petunia 100]

The budget categories you have listed add up to $4945. (I used $85 for the car insurance). Where is the rest of your money going?

Are you just guessing at what you think you spend, or are you actually tracking what you spend? From your "eating out" comment, I am guessing you aren't tracking. Most people find tracking to be an eye-opening endeavor. I recommend you give it a try.

Betterment's portfolios are nicely diversified. The fees are low, though you can get a bit lower by opening a brokerage account someplace which allows free trades. Still, not a bad way to go.

[rhetoricalphd]

The budget categories you have listed add up to $4945. (I used $85 for the car insurance). Where is the rest of your money going?

Are you just guessing at what you think you spend, or are you actually tracking what you spend? From your "eating out" comment, I am guessing you aren't tracking. Most people find tracking to be an eye-opening endeavor. I recommend you give it a try.

Betterment's portfolios are nicely diversified. The fees are low, though you can get a bit lower by opening a brokerage account someplace which allows free trades. Still, not a bad way to go.

Can you recommend a brokerage account? I am not familiar with this area of investing? I do have money in Tradeking (though I don't contribute to it regularly).