[Intro]
Hi Reddit, I wanted to make a post to get some thoughts on my current financial situation and also advice on how to move forward in case there are better opportunities with what to do with my money that I may be missing out on. I'm going to be extremely transparent with my income, expenses, and savings allocation because I'm looking for specific thoughts on how to improve.
[Context]
I am 26 years old and have been living & working full time in tech sales for exactly 3 years in NYC.
[Income]
My first year salary was 44k + commissions, which totalled 49k pre-tax, 35k post-tax.
My second year salary was 46k + commissions, which totalled 57k pre-tax, 41k post-tax.
My third year salary was 48k + commissions, which totalled 90k pre-tax, 57k post-tax.
This comes out to 196k pre-tax, 133k post-tax.
[Expenses]
I have kept track of every single penny I have spent in the past 3 years in my personal expenses spreadsheet. In total of those past 3 years, I have spent roughly $92k, details as follows:
| CATEGORY | TOTAL SPENT ON CATEGORY | % OF POST-TAX INCOME (133k) SPENT ON CATEGORY |
|---|---|---|
| APPAREL | 5440.03 | 4.09% |
| DRINKS | 2820.89 | 2.12% |
| EATING OUT | 17252.07 | 12.97% |
| GIVING | 9689.94 | 7.29% |
| GROCERIES | 4682.57 | 3.52% |
| RENT/UTILITIES | 25849.17 | 19.44% |
| EVENTS/ELECTRONICS/ENTERTAINMENT/HOME NECESSITIES | 21341.91 | 16.05% |
| TRANSPORTATION | 4524.12 | 3.40% |
| ~92k | 68.87% |
[Cash/Savings/Investments/Retirement Portfolio]
Given my math, I have made ~$133k total post-tax, and spent ~92k in the past 3 years, which equates ~41k leftover, which I have allocated as follows:
| $ | notes | % OF TOTAL ALLOCATION | |
|---|---|---|---|
| CHECKING ACCOUNTS | 18,000 | 36% | |
| HIGH-INTEREST SAVINGS ACCOUNT | 5700 | ally, 1% interest rate, deposit $25/wk | 12% |
| BETTERMENT AUTO INVESTING | 5100 | deposit $50/wk, up 2% all time (started 2 years ago) | 10% |
| BETTERMENT ROTH IRA | 2100 | deposit $25/wk, up 2% all time (started 2 years ago) | 4% |
| ROBINHOOD STOCKS | 11100 | spontaneous deposits, up 25% all time (started 2 years ago) | 23% |
| BITCOIN | 1800 | $100/bi-weekly, break-even (started 1 year ago) | 4% |
| 401K | 5500 | $323/monthly, contribute max to get full employer match of 4% | 11% |
| TOTAL | ~49.3k | 100% |
Altogether, everything I have comes close to around 50k, but I guess the Roth IRA and 401k should not be included, which would be closer to 43k.
[Conclusion]
I hope this is not taken the wrong way or as if I am coming across as boastful. I share because I would love any thoughts from the PF community on how I can improve in any way when it comes to
- my income (making more),
- expenses (spending less), and
- current allocations (cash/checkings, investments, retirement funds).
Totally open to any and all criticism and feedback!
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