ct-yankee t1_j6jizpk wrote on January 30, 2023 at 7:55 PM

I think you've done a pretty good job. Glad to see you baked in savings, that is important. Focusing on an emergency fund is wise. i would not delay contributing to the 401k at work ...secure any match. Don't leave that money on the table.

If you have after tax holdings in your brokerage account, consider leveraging those to establish your minimum emergency fund, and pay down loans... ultimately that will free up some of your income/capacity.

If I was in your shoes, I'd start every dollar budgeting. Know every dollar coming in and where it is going out. Track everything. Even a coffee. That practice will uncover any surprises you may have about your own behaviors that you arent considering. It is easy to overlook grabbing a sandwich, stops for coffee, .

400 a month is a lot of money for a single person to spend on food in a month (especially if this is additional on top of what is supplemented by parents). Do you brown bag? Does this 400 include eating out? You said max so being conservative is wise at first but you don't have much wiggle room here. Be sure to have clear rules about spend and consumption of groceries with your roommate.

You may want to establish a sunk cost funds for auto maintenance and basic non-emergency wear and tear like wipes, tires, oil and filter changes, etc.

Beachboo07 OP t1_j6krqwh wrote on January 31, 2023 at 12:47 AM

Thanks so much! I do want to contribute again this year, I was just thinking that after moving out I want to have all the money possible in case of any emergency. I will contribute again at some point soon.

I not familiar with what you’re saying in that second paragraph …. How would that free up my income more?

I agree the zero-based budget is going to help me a lot. I’m going to start that this month so I can get a feel of my exact ranges. I think knowing this will ease my anxiety a lot lol.

Once I reach my 20k emergency fund, I’m going to start some sinking funds to focus on! I lucky and my dad helps with those things, but I still think it’s important to have that just in case

ct-yankee t1_j6mxmwo wrote on January 31, 2023 at 1:57 PM

>I not familiar with what you’re saying in that second paragraph …. How would that free up my income more?

If you have money sitting in a brokerage, and there is enough to finish your emergency fund and/or pay off a loan you have, then you will have more income that would have been going to build the emergency fund, or going to that loan, that you could deploy elsewhere.

In short, fewer of your incoming dollars would have a "job" when the emergency fund is done and the loan is gone. That is then free capacity.

Beachboo07 OP t1_j6nj7dw wrote on January 31, 2023 at 4:23 PM

Ah that makes more sense, thank you! I’m excited for this stupid loan to be gone .. it’s going to be such a relief. I can’t imagine how much I’ll be able to improve my finances when I can allocate that $500 a month to something else.

Thank you for your help on all of this I appreciate it a lot!