Financial Management: Spending and Saving
January 26, 2014 12:54 AM Subscribe
For the first time in my life I'm actually making decent money! How do I balance spending and saving?
posted by masters2010 to Work & Money (14 answers total) 10 users marked this as a favorite
Hi Hivemind, I come to you for your wisdom. I find myself actually making money for the first time in my (young) life and it's awesome yet strange. However, it's difficult to be sure what I should be doing with it, with regards to spending and saving.
Checking - $22,000
Roth IRA - $11,000
Investment - $15,000 -- mostly mutual funds, with some individual stocks
Annual Income - $40,000
I'm confident in my investment knowledge, so I don't need help in that realm. I max out my annual Roth IRA contribution, and I throw money into my investment account here and there -- nothing scheduled.
If I'm able to contribute to my savings, should I treat myself to occasionally large expenditures, or should I aggressively save? Last fall, I spent about $7,000 on a trip to Asia. This spring, I was thinking about buying a motorcycle, which will cost around $7,000 when all said and done. Is this a fine idea, or should I continue to save? I am looking to go to business school in 2015, so perhaps I should start to save up for tuition? Or should I enjoy what I have, so long as I continue to contribute to my savings?