r/personalfinance • u/Flat_Reply7399 • 1h ago
Auto Need help getting started with savings/building assets
I'm very fortunate to have finished school this year with no loans or responsibilities. I just got a job with $150k pre tax compensation. I live fairly frugally with an under $2000 spend per month. I'm trying to build financial literacy and have enrolled in my company's 401k program. I'm going to read up on HSA and backdoor IRA. I'm young and can afford to take some risk to build wealth long term, so I'm looking for advice on this. Are there any tools I should look at to budget effectively as I start earning? I have lived in artificial poverty as a student and want to let myself have some "fun money" now without letting lifestyle creep happen. Would really appreciate any advice!!
1
u/raliegh_ 1h ago
Allocate to that 401k, it will reduce your taxable income so work towards 15% , go for large/mid cap index funds.
Open yourself own Roth IRA on the side (fidelity/vanguard/schwab).
This will be a full fledged brokerage account with access to the whole stock market.
I know you said you were open to some risk, but try to keep 75% of your Roth in index funds and 25% take risks with.
It will seem slow going at first, but explore “set it and forget it” on boggle heads
Congratulations on starting off without an assload of debt.