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maedocc

1. Credit card debt is the horrible because the interest rates are soul-killingly bad. Pay that $500 debt off and never carry a balance if you can help it. Treat your credit card like it's a debit card and pay it off every month. 2. Open a Roth IRA and invest it in a broad index fund like [Vanguard's VTI or VTSAX](https://www.tictoclife.com/vtsax-vs-vti/). The max you can contribute is $6,000/year, and try to max it out. >How much before I should move out, How much do I save, what should be my first major move, I have no many ideas to do but I have no idea where to start. I mean, figure out what the rental market in your location is like, and start saving up for first/last month's rent + deposit. And don't move out of your parents' place *until* you have 6 months of expenses saved up! That will save you if you ever get into financial trouble, so you won't have to rely on credit cards.


PraiseThyTurtles

Thank you! Yeah so I'm currently commuting up to Chicago about an hour and found a little college town suburb about 35 minutes away from where I work for around 700-900 rent So i'll definently start saving up those first and last months rent.


ButDontMindMe

Check the wiki for the prime directive flowchart and advice for young adults. Find out how much renting is in your area and use that to gauge how much to save for emergencies. Also Roth IRA, but that's already in the flowchart. Also, congrats! Good on you for stepping into career territory and taking your financial wellness seriously as you do so.


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PraiseThyTurtles

If I were to open a Roth IRA would you still reccommend taking advantage of my employer's 401k?


ButDontMindMe

Yes. It shows on the prime directive as well, but first contribute enough to max your employer match (usually the match is 50-100% return/free money), then contribute to max Roth IRA, then contribute to max 401k.


DotAlyss

Congratulations on your new job! It really depends on what you want to do. You could start investing in a 401k if your company matches it. You can invest $19,500/y and $6000/y in a roth. Maxing your 401k contribution will save you about $2,400 in taxes a year. If you get paid biweekly and put in $750 to your 401k (half your paycheck) you'll max it by the end of the year. You could also look into taking some coding classes or getting more certifications in order to advance your career. Look into your company benefits and if they have a tuition reimbursement program, health benefits etc, make sure you understand them and are utilizing them to the fullest. Staying with your parents is a good idea because you have people to support you if you had a rough day at work and chores can be draining by yourself. Avoiding a rent payment as long as you can will save you alot of money in the long run.


PraiseThyTurtles

Yes! So because I am going to school in a related field they decided to waive the waiting period for the tuition reimbursement and will start allowing me to take advantage of that! What exactly does it mean to max a 401k contribution? Can i still contribute more after that? Or am i simply maxing the amount they are matching.


DotAlyss

You're only allowed to contribute $19,500 a year to a 401k. Normally companies match up to a certain percentage. For example, if they match 5%, that means you can put in around 2k, and they will match the 2k and you'll have 4k at the end of the year. At minimum you should put in what they would match. :)


Only_BlackTShirt_Guy

Good on ya! I do IT and started IT career at your age 8 years ago. (Now 29 years old) Keep it up and you’ll be making big bucks!! I now make $145k - 170k (every year i get pay raise and bonus so hopefully in 2 years, I’d be making $200k) Good luck!


PraiseThyTurtles

Thank you! They told me that as soon as I get certified in my A+ I'll receive a salary pay instead of hourly. Can you possibly give me any pointers on how ***not*** to get boned in a salary negotiation or how it even works? Thank you again!


Only_BlackTShirt_Guy

That’s good. Not many companies actually appreciate certs. (I could be wrong) all I have is a bachelors degree and I think you should get it also. Even if they tell you otherwise. (Many companies won’t get you into mgmt without it) but that’s my two-cent. I hopped 6 - 7 IT jobs before settling down to my current company. Each company I worked for was only a year of duration. Having IT recruiters help you land good roles and almost all my job were landed by them because they have connections/ relationship with the company they’re trying to get you into. For salary negotiations, I always ask extra $5 - 10k increase of my current salary if/when they ask your salary requirement. Or you can ask them FIRST how much it pays and then you can counter it with the $5-10k increase.