I am probably your parents age....mid 50's. I think you are doing fine.

When I first started out (earning less with a PhD), my expenses were similar.

The big thing is to keep putting the money in the 401K. And to not take on any (additional) debt.

At 25, not many things can go wrong (health wise), except avoid pregnancy.

The reason for the safety cushion of 6 months is because 1) the time it takes to find a new job, and 2) what happens if you get sick and can't work? The medical bills will blow past 10K in no time -- except your insurance probably has a maximum out of pocket.

(that happened to me at 48, but I had disability insurance).


When your car is paid off, pocket the extra money. Your rent is reasonable. Hair care? I am not one to ask; I get a $15 haircut every three months.

Health insurance, don't touch.

The only way I see for real saving is to increase the income or move home.

Anonymous wrote:Is your car insurance a true monthly payment, or are you paying it every 6 months (in full)? The 6-month at once option saves you money. You can manage to set aside the fuller amount, and overall, you'd be setting aside less.

But if you are already doing the 6 month payment, good job.

In my experience, the six month, pay your car insurance all at once, doesn't save much in the grand scheme of things. If the OP can do that, great, if not, most insurance providers have a monthly payment plan, or half now, half in 3 months going, or something else.

I get why the OP would want to almost double up payments to pay the car off sooner, but maybe lower that slightly, and still manage to pay the car off sooner until a new job arises.

Anonymous wrote:

Anonymous wrote:
Thank you for your feedback. I feel very fortunate that my parent's paid for my education, and I don't have student loans added to this mix.

To all those saying that I should cut back on the blowouts - you have me convinced. But I'm an early-20s, single woman and my appearance is pretty important both in the professional world and when going on dates - does this make a difference to you?

Can you get Keratin treatment to get straight hair? It is one time cost but then you do not need to get a blowout for a few months? There are some DIY treatments too. Research online and on youtube.

+1 I am also curly and 28. I used to get blowouts, bought myself expensive dryers and irons. When I started traveling internationally on a regular basis for work I switched to Keratin. Price depends largely on your length. Mine is nearly to my waist and was over $300. My neighbor has shoulder length and it's $100. I get my roots touched up every 4-6 months for $100. Even if you're on the high end like me, that's less than your monthly blowout cost.

Anonymous wrote:
Thank you for your feedback. I feel very fortunate that my parent's paid for my education, and I don't have student loans added to this mix.

To all those saying that I should cut back on the blowouts - you have me convinced. But I'm an early-20s, single woman and my appearance is pretty important both in the professional world and when going on dates - does this make a difference to you?

Can you get Keratin treatment to get straight hair? It is one time cost but then you do not need to get a blowout for a few months? There are some DIY treatments too. Research online and on youtube.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

Interest rate is very low at 1.49% APR. Just hate the debt.

You're right, I need to start giving up my weekends for babysitting.

Don't give up your weekends but babysit 1-2 nights a month. That will help build a small cushion.

With that low interest rate I would wait til the end of the month and split half your leftover funds between savings and paying off the car loan.

Are you planning to stay at this job? How are your prospects for raises, bonuses etc?

What is your savings like?

I would love to stay at my job, but its budget is so tight I don't think there is much potential for raises. I need to find a new one. (I could probably make $55k elsewhere.)

Savings is about $7k in retirement, $1k in cash savings.

I would definitely advise you to build your emergency fund- 6 months of expenses- before paying off your car.

Also definitely start looking for a new job where you can earn more money.

Honestly, your budget is in decent shape. I made much less than you in my 20s and paid higher rent- and I had student loans.

I disagree on the emergency fund of six months. First off, op is eligible for unemployment if she's laid off. At her age and level it's much easier to find a new job. She doesn't have a mortgage and can't be responsible for any repairs to her rental. Really there is no reason to have a large sum of money sitting around in cash. She could probably use another 1-2k in case she ever had a car repair but that's really all she could use it for.

That is so not true. I cannot believe you are advising her to stop saving at 2k. What about an emergency health issue, down payment on a house, etc?

How is 10-20k going to help in an emergency health situation? It won't get her anything. There's honestly no point.

An emergency fund is very different than a downpayment fund. And once she owns a property she will need an emergency fund for repairs and other things that can happen to her property.

OP, please don't listen to this crazy person. OF COURSE having 10-20K on hand will help you during an emergency health situation. Everyone needs a good emergency fund in place and not just home-owners. This PP has no clue what he or she is talking about.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

Interest rate is very low at 1.49% APR. Just hate the debt.

You're right, I need to start giving up my weekends for babysitting.

Don't give up your weekends but babysit 1-2 nights a month. That will help build a small cushion.

With that low interest rate I would wait til the end of the month and split half your leftover funds between savings and paying off the car loan.

Are you planning to stay at this job? How are your prospects for raises, bonuses etc?

What is your savings like?

I would love to stay at my job, but its budget is so tight I don't think there is much potential for raises. I need to find a new one. (I could probably make $55k elsewhere.)

Savings is about $7k in retirement, $1k in cash savings.

I would definitely advise you to build your emergency fund- 6 months of expenses- before paying off your car.

Also definitely start looking for a new job where you can earn more money.

Honestly, your budget is in decent shape. I made much less than you in my 20s and paid higher rent- and I had student loans.

I disagree on the emergency fund of six months. First off, op is eligible for unemployment if she's laid off. At her age and level it's much easier to find a new job. She doesn't have a mortgage and can't be responsible for any repairs to her rental. Really there is no reason to have a large sum of money sitting around in cash. She could probably use another 1-2k in case she ever had a car repair but that's really all she could use it for.

That is so not true. I cannot believe you are advising her to stop saving at 2k. What about an emergency health issue, down payment on a house, etc?

How is 10-20k going to help in an emergency health situation? It won't get her anything. There's honestly no point.

An emergency fund is very different than a downpayment fund. And once she owns a property she will need an emergency fund for repairs and other things that can happen to her property.

Embrace your curls. You'll save money and not look like every other girl in the bar.

Sign,
A curly-haired sister.

Anonymous wrote:Your take home does sound very low but it's good you are putting 10% in a 401k. Do not pay more than $240/month on the car - that is a super low interest rate and you need to be saving more than $100/month. A healthy 401k or paid off car isn't going to help you if you have no emergency fund.

Definitely definitely babysit on weekends to fund your hair! I make 2x what you do now, but made 45k out of college and still to this day babysit for spare cash.

Thanks for the feedback. Although I'd love to knock out the car loan in the next 8 months, instead I think I'll save $350 a month (plus any baby sitting money) and pay only the $240 on the car loan. When the loan is paid off in seventeen months, I'll be able to divert that to my savings.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Is your car insurance a true monthly payment, or are you paying it every 6 months (in full)? The 6-month at once option saves you money. You can manage to set aside the fuller amount, and overall, you'd be setting aside less.

But if you are already doing the 6 month payment, good job.

It's truly a monthly payment. My bank offered me the loan and does a monthly auto-deduct from my checking account; it doesn't give me a 6-month option. (I'm not really sure what you're talking about.)

NP, but I think pP was talking about car insurance not car loan.

Ah, you're right. Thanks for pointing that out. I will look into a 6 month option and see if that saves money!

Anonymous wrote:Your take home seems very low for $45k/year. Are you sure that your aren't withholding too much for taxes?

PP is correct. Your 401k reduces your taxable income down to $40,500. Your gross pay after federal taxes should be a couple hundred a month more. Check //taxformcalculator.com/.

Are you in DC, MD or VA? Do your parents use a CPA who could take a quick look at your pay stub and guide you?

Anonymous wrote:

Anonymous wrote:Is your car insurance a true monthly payment, or are you paying it every 6 months (in full)? The 6-month at once option saves you money. You can manage to set aside the fuller amount, and overall, you'd be setting aside less.

But if you are already doing the 6 month payment, good job.

It's truly a monthly payment. My bank offered me the loan and does a monthly auto-deduct from my checking account; it doesn't give me a 6-month option. (I'm not really sure what you're talking about.)

NP, but I think pP was talking about car insurance not car loan.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What is your interest rate on car? Unless it's very high I wouldn't pay that aggressively.

I would really try to work on the blowouts cost...would even permanently straightening your hair be cheaper in the long run? Or figuring out a cut that works for curly hair?

What are your long term prospects for increasing your income? Can you babysit for extra cash on the weekends? I did that when I was in my 20s and made an extra $200-$500 bucks a month that way.

Interest rate is very low at 1.49% APR. Just hate the debt.

You're right, I need to start giving up my weekends for babysitting.

Don't give up your weekends but babysit 1-2 nights a month. That will help build a small cushion.

With that low interest rate I would wait til the end of the month and split half your leftover funds between savings and paying off the car loan.

Are you planning to stay at this job? How are your prospects for raises, bonuses etc?

What is your savings like?

I would love to stay at my job, but its budget is so tight I don't think there is much potential for raises. I need to find a new one. (I could probably make $55k elsewhere.)

Savings is about $7k in retirement, $1k in cash savings.

I would definitely advise you to build your emergency fund- 6 months of expenses- before paying off your car.

Also definitely start looking for a new job where you can earn more money.

Honestly, your budget is in decent shape. I made much less than you in my 20s and paid higher rent- and I had student loans.

I disagree on the emergency fund of six months. First off, op is eligible for unemployment if she's laid off. At her age and level it's much easier to find a new job. She doesn't have a mortgage and can't be responsible for any repairs to her rental. Really there is no reason to have a large sum of money sitting around in cash. She could probably use another 1-2k in case she ever had a car repair but that's really all she could use it for.

That is so not true. I cannot believe you are advising her to stop saving at 2k. What about an emergency health issue, down payment on a house, etc?

Your take home does sound very low but it's good you are putting 10% in a 401k. Do not pay more than $240/month on the car - that is a super low interest rate and you need to be saving more than $100/month. A healthy 401k or paid off car isn't going to help you if you have no emergency fund.

Definitely definitely babysit on weekends to fund your hair! I make 2x what you do now, but made 45k out of college and still to this day babysit for spare cash.

Your take home seems very low for $45k/year. Are you sure that your aren't withholding too much for taxes?

You should check out the curly girl group on Facebook and read Lorraine masseys book.