Recent College Grad - Advice on Investing/Saving
Hi! I am a recent college grad and am wondering if anyone has any hindsight advice on determing where to draw the line between investing and saving. I'll be starting a job that pays pretty in-line with the IB industry and renting in a market where I can expect around $1,200-$1,400 for at least the first two years. I know obviously this varies for everyone significantly, but I am wondering if anyone has advice looking back on what they did right, wrong, etc. I'm definitely hoping to max my 401k, but assuming I can keep my expenses down I am wondering what is reasonable to invest versus save. Hard to say what long-term goals are, definitely buy a place in the medium to long term future and hopefully retire by 60. I appreciate any advice!
Honestly, just graduated college myself so I'm not necessarily the best person to give advice but assuming you have student debt, I would invest 40% of my discretionary income after food, rent, and clothing into etfs or mutual funds and spend 60% paying it off. The other aspect you need to worry about is job security. If there is a chance that you could get laid off or switch jobs in the next few years, I would save 10% of my paycheck every month. For renting, honestly just find a place that's decent and stay there. Again, I don't know your circumstances but with WFH over the next year and possibly over the next several years you are going to want to enjoy the place you spend 95% of your time at.
Thank you, I appreciate the insight!
also consider investing in a Roth while you can
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