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First of all, I do not spend my bonus (which is a multiple of my base) at all – it gets put away entirely.

Most of my monthly paycheck right now goes towards the basic cost of living, which includes regular mortgage payments, maintenance payments to my condominimum and real estate taxes, my student loans payments and bills. Similar to Craig, I allow myself $1000 for other “basics” such as food, the cost of cabs and public transportation, i.e. stuff I have to buy, and then $1000 per month on “extras” such as salon manicures, new clothes, purses, weekend trips here and there. If I go over this “extras” budget, I have to wait for the next month before I spend again. I use online software to track it. The balance of my paycheck, which comes down to about 15 hundred, goes to savings.

When it comes to managing my savings, paying down my mortgage is my #1 priority and I am hoping to own my home outright in 3 years. That way I can live cheaply and possibly get a roommate and even make some money off of it if things get bad. Also, it is in the up-and-coming area so hopefully it will appreciate quite a bit.

I do not intend to pre-pay my student loans early and will ammortize them over the longest period of time possible. This is because my priority is being able to stay afloat if I lose my source of income – and there’s an option to suspend your student loans payments in the event of economic hardship. So, they won’t tank me. Everyone with the same concerns as I should know that.

I keep a substantial amount of cash in liquid investments. I do NOT contribute to my 401K. The reason is that investment options are very limited (a bunch of stupid mutual funds) and since I invest money for a living, I can handle it much better myself. I do max out my IRA for tax purposes though.

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