What's my next step?

[Chitownfinest]

Hey everyone!

I'm new to the site, but have been wondering about my finances, what kind of position I'm in, and what my next steps should be.
My status:

• Age 24 in Chicago
• Monthly take home pay (after insurance, 401k, transportation): $2200
• Monthly rent, bills, groceries, car insurance: $865
• My 401k is set up and funds will be deposited with my next paycheck
• I have no debt of any kind
• I have $14,500 to my name

Am I in an ok position for a 24 year old? What should my next steps be? I'd like to be saving up for a house down payment within the next 5 years, but at the same time enjoy my youth.

Any advice would be greatly appreciated.

[Chitownfinest]

Thanks for the reply! I have two follow-up questions.

I can invest directly into a Roth 401k with a company match. Would you recommend doing that instead of putting anything in a traditional 401k?

Also, what is the best vehicle for saving for a house? Keep it in a savings account with a low risk, low interest rate? Or would you recommend finding a low risk mutual fund that has shown a consistent history of growth?

Thank you again!

[disneysteve]

I can invest directly into a Roth 401k with a company match. Would you recommend doing that instead of putting anything in a traditional 401k?

Yes, go with the Roth 401k.

Also, what is the best vehicle for saving for a house?

It depends on your timeline. If 5 years or less, use a money market account. If more than 5 years, you might want to put at least some of it into the market.

[llckll]

Hey everyone!

I'm new to the site, but have been wondering about my finances, what kind of position I'm in, and what my next steps should be.
My status:

• Age 24 in Chicago
• Monthly take home pay (after insurance, 401k, transportation): $2200
• Monthly rent, bills, groceries, car insurance: $865
• My 401k is set up and funds will be deposited with my next paycheck
• I have no debt of any kind
• I have $14,500 to my name

Am I in an ok position for a 24 year old? What should my next steps be? I'd like to be saving up for a house down payment within the next 5 years, but at the same time enjoy my youth.

Any advice would be greatly appreciated.

Monthly rent, bills, groceries, car insurance: $865??

Wow, that is low. Good for you. Seems like you're in good position and try to remain debt-free if you can.

Charlie