| Don't spend >30% of your gross income on housing. Debt is evil. Unless you can get a higher rate of return than the interest rate of your debt, pay off the debt as soon as possible. Have at least 6 months of expenses in an easily accessible, liquid place like a bank account. Once you've got that rainy-day fund in place, plow the rest (at least 10% of income, 20% is probably a better target) into investments and take any tax advantages possible: Traditional IRA + Roth IRA ($5500 combined max/year) Traditional IRA contribution is tax deductible if you aren't covered by a work retirement plan or if you're under a certain earning threshold. Take advantage of 401(k) if your employer offers it, contribute at least enough to get any matching they offer. These are pre-tax dollars, but some plans have shitty investment options, so YMMV. $17,500 max/year. Put the rest in an individual brokerage account and invest regularly (monthly or quarterly) in low-cost, broad-market index funds or ETFs like VTI, VOO, or QQQ. The rest is your fun money...you're young, so make sure you're also investing in yourself by going on trips, having fun experiences, etc, just keep the future in mind and don't go TOO crazy! |