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pharmagirl26 OP t1_j6ko8cr wrote

Reply to comment by Rave-Unicorn-Votive in Am I saving enough for retirement? by pharmagirl26

I just got this position in May of past year. I was a student before and was making less than 20k.

I have a ROTH that I plan on maxing out via the backdoor. Wasn’t sure I could do both the roth and IRA.

I thought 2k for allowance was small. I could adjust to 1.5k

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Rave-Unicorn-Votive t1_j6kpalt wrote

>Wasn’t sure I could do both the roth and IRA.

A Roth IRA is an IRA.

>I thought 2k for allowance was small.

You thought 20% of your net pay on entertainment was small? That's more than your housing expense. That's a dangerous level of lifestyle creep for someone who was making $1500 a month just 9 months ago.

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alwayslookingout t1_j6ktmwz wrote

$2K/mo for allowance/fun is a lot especially when you have $54K of debt, even if they’re low-interest debts. You’re essentially borrowing at 1.49 to 3.49% each year for fun money by just keeping those loans around to spend 10% of your take home every month.

At your income level there’s no reason why you cannot max out your 401K and IRA unless you’re paying off high-interest debts or saving for a big purchase.

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