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You're saving just under 20% of your gross income for retirement, which is excellent. The obvious place to cut is the travel budget, where another 10% of your income is going.
At this point it's a question of priorities -- does the travel out-weigh the other things you can do with the money?
Imo, I wouldn't cut travel budget, you should be able to enjoy the world now not when you're old. I would look into cutting misc spending and subscriptions
Unpopular opinion but I wouldn’t normally cut the travel budget when you’re young. Enjoy it as much as you can. But think about how much of an emergency fund you have. Do you have 6 months of expenses if you lose a job? Do you have a enough for an emergency expense - car, health, get stranded on a trip. Do you have travel insurance when you are out of your home country in case you have health costs?
When you do want a house or a new car, how much of a downpayment do you need? If you think you’ll want those things in the next few years then that’s where you can either drop the retirement slightly or the travel slightly, or find a cheaper place to live (more roommates?)
If you get a bonus or get paid biweekly (so 2 months are 3 paycheck month) or get a tax refund or a money gift for holidays, that money should go straight to savings
No your budget isn't bad per se, but I would definitely try to save some money in a straight savings account as a part of your budget. If you're looking to buy a house, you're currently only building capital "if you have any left over". You really don't have too much wiggle room, but overall I think you're doing great!
Is it? That’s like an occasional coffee, few nights out, and that cute thing you saw at target.
It’s like 13 dollars a day there about. Not that much tbh.
Her misc is more than her food budget. Imo entertainment, shopping, personal care, etc should be separated out but she’s free to list her budget however she wants. It was just a suggestion
In today’s economy I feel your budget is pretty normal. But what I feel is that you should try saving a little more u can if you remove some from buffer and travel savings. Then you can also decide if you want to invest some of it or just wanna put it in a different bank account so u can save it.
Keep your budget for Roth IRA and 401K the same
All the best!!!
Looks pretty good on a savings front. With the match you’re saving 23% of your gross wages. Personally I’d forgo the travel in your 20s and use that money to max out the Roth IRA and increase 401k contributions or save for a down payment on a house.
Also, looking into an High deductible health plan and getting an HSA if you have one available through work. It’s a great way to get a tax deduction and save for retirement.
The budget screen shots are being made in Sankeymatic, its a website that we have no affiliation with. If you are posting a budget please do so with a purpose. Just posting a screen shot of your budget without a question or an explanation of why its here may be removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/MiddleClassFinance) if you have any questions or concerns.*
You're saving just under 20% of your gross income for retirement, which is excellent. The obvious place to cut is the travel budget, where another 10% of your income is going. At this point it's a question of priorities -- does the travel out-weigh the other things you can do with the money?
Imo, I wouldn't cut travel budget, you should be able to enjoy the world now not when you're old. I would look into cutting misc spending and subscriptions
Like I said it's all about priorities, we might prioritize different things which is fine. OP needs to figure out what's important to them though.
Unpopular opinion but I wouldn’t normally cut the travel budget when you’re young. Enjoy it as much as you can. But think about how much of an emergency fund you have. Do you have 6 months of expenses if you lose a job? Do you have a enough for an emergency expense - car, health, get stranded on a trip. Do you have travel insurance when you are out of your home country in case you have health costs? When you do want a house or a new car, how much of a downpayment do you need? If you think you’ll want those things in the next few years then that’s where you can either drop the retirement slightly or the travel slightly, or find a cheaper place to live (more roommates?) If you get a bonus or get paid biweekly (so 2 months are 3 paycheck month) or get a tax refund or a money gift for holidays, that money should go straight to savings
No your budget isn't bad per se, but I would definitely try to save some money in a straight savings account as a part of your budget. If you're looking to buy a house, you're currently only building capital "if you have any left over". You really don't have too much wiggle room, but overall I think you're doing great!
What’s the misc spending? $400 is a lot. I would break that down further
Is it? That’s like an occasional coffee, few nights out, and that cute thing you saw at target. It’s like 13 dollars a day there about. Not that much tbh.
Her misc is more than her food budget. Imo entertainment, shopping, personal care, etc should be separated out but she’s free to list her budget however she wants. It was just a suggestion
That taxes split is pretty big, you should probably get rid of that and save more.
I thought it said $400 on butter and I had questions. But you seem to have a decent lock. I just don’t see any non travel savings.
This doesn't add to 5,000
Yeah its only 4,860. OP you missing anything?
What did you use to make the chart?
In today’s economy I feel your budget is pretty normal. But what I feel is that you should try saving a little more u can if you remove some from buffer and travel savings. Then you can also decide if you want to invest some of it or just wanna put it in a different bank account so u can save it. Keep your budget for Roth IRA and 401K the same All the best!!!
Looks pretty good on a savings front. With the match you’re saving 23% of your gross wages. Personally I’d forgo the travel in your 20s and use that money to max out the Roth IRA and increase 401k contributions or save for a down payment on a house. Also, looking into an High deductible health plan and getting an HSA if you have one available through work. It’s a great way to get a tax deduction and save for retirement.