Backstory: After taking an internship for ibm over the summer, I had to move from nyc to Boston MA. During the duration, all expensive was covered by me. I learned the hard way the value of saving money real quickly. Eating rice and cereal for breakfast lunch and dinner isn’t pleasant. I know I have formed the savings habit, currently saving 40% of my small income. But right now, I’m in a cross road. My checking accounts keeps deflating. Even after opening another account for bills. I can’t seems to build a comfortable checking account. I’m stuck in an endless cycle of border line broke in respect to my checking account. I do not want to keep taking loans from my savings account. Help me blind. My goal is to be able to manage money like the elites. Am I saving too much? I also put in 50 dollars a month in an investment portfolio. Am I spending too much? Or just not making enough money? I only work 16 hours a week rn (internship) and currently live off campus.
It's great to try to save while you're an intern, but not practical....
Why not? Shouldn’t I learn how to save now?
College is a time of exploration, read books on real estate investing and when you can explain why it’s the best investment without thinking then you will be able to manage your money like the elites!
You save 40% but only invest 50 dollars? What? You aren't saving cash are you?
Yeah 50 dollars because that money won’t phase me. I much rather see 5k in my bank because of the confidence it instill within my mental attitude
That 5k in your bank is losing value every day. Don't keep more than 6 months cash. It's throwing money away.
Work more hours
Listen to Choose FI podcasts
Most Americans graduate college with huge amounts of debt. So if you’re saving anything before you graduate, somehow, it means you’re lucky to have well off and supportive parents. You should call them and thank them for your savings account and tell them you appreciate their hard work and support.
I understand, but I go to a public university my debt isn’t bad only 20k. I worked during my duration in college.
Pay off student loans before savings account and investing. What’s the interest rate in your loans? The most a savings account gives right now is like 2.3%
Invest your money instead of putting it into a savings account
I save the amount I do because I want to fix this habit into my dna.
Creating habits is great, but if you aren't working full time and you don't have any hard need not mentioned here, don't stress yourself with savings yet, money will come and when you are managing a bigger income then have a plan. Now you should better have money available for your short term decisions, what if you get a job in DC and you have to start there with some out of pocket expenses, like real estate fees? Have margin for important decisions now, and be patient about savings, it will get you further mid and long term in my opinion
Thank you best advice yet
If you need specific help post your detailed budget and income info