I have recently gotten a new job as a software engineer where I went from a $95,300 base plus about $12k in bonus (it varied) to a $125k base, $10,000 sign-on bonus, and up to 10% yearly bonus (depending on a lot of various factors) that I will get at the end of 2023. I will be immediately putting the $10k sign-on bonus into my emergency savings which are in a high-interest account at 4.1% and that should bump me up to a solid 6 months. I have $26,800 in student loans that I refinanced this year with an interest rate of 2.91%. I don't carry a credit card balance from month to month and have no car payment. I have a mortgage for a one-bedroom condo with a balance of $154k at 2.875% which is valued at around $220K.  My new job has a 401K that matches 100% up to 3% and 50% for the next 3%. Initially, when I started the new job on Dec. 19th, I put contributions at 10%. I have about 20K in the 401K from the old job that I am in the process of putting in a Rollover IRA. I also have about $3800 in a ROTH IRA that I opened in 2022. I have a 6 emergency fund once that sign-on bonus is deposited. I am looking for advice on what I should do with the new money coming in. I really want about a year in emergency savings but I also really want to max out my 401k contributions but not sure where I should focus or how I should split it. Maxing out the 401k would be contributing around 20% based on my calculations. 

&amp;#x200B;

I am also experiencing some lifestyle creep. I use YNAB and have been combing over my budget for the last year pretty closely. It seems that the biggest places I could see savings are eating out, groceries, clothing, and pet supplies. I got a puppy last year so there were a lot of expenses for that that should calm down. But my problem is that if I have the money for something expensive that I've been wanting (like new furniture this year :(  - I will buy it in cash and then not be able to save as much. I have never made this kind of money before and I want to be responsible but I am not sure how to balance the wants that I have and socking everything into savings. Any advice on how to manage this and budget for big expenses while also saving enough is welcome too. Or if there is anything else that I should be doing that I haven't thought of, please let me know! I just want a plan moving forward this year so that I can track my progress well.
Congratulations on your new job and increased income! Here's a plan that might help you balance your goals:

1. **Emergency Savings**: Since you already have a solid 6-month emergency fund, start slowly building towards a year. You don't need to rush this, as 6 months is already a good cushion. You could allocate a small portion of your monthly income towards this.

2. **401k Contributions**: Maxing out your 401k is a great idea as it provides tax advantages and your employer matches a portion of your contributions. The 2022 contribution limit is $20,500, so you may need to adjust your contribution percentage to hit this amount if you can afford it. 

3. **Roth IRA**: Since you're already contributing to a Roth IRA, try to max this out as well, which is $6,000 for 2022. This provides post-tax benefits and can be a good complement to your 401k.

4. **Student Loans and Mortgage**: Your interest rates are quite low on both, so while you should continue to make your regular payments, it's not necessary to prioritize paying these off early over maxing out your retirement accounts.

5. **Lifestyle Creep**: It's important to enjoy your increased income, but also to save and invest for the future. Consider setting a budget for discretionary spending each month and stick to it. You could also start a separate savings account for larger purchases, contributing a small amount each month.

6. **Budgeting for Big Expenses**: Set specific savings goals for big ticket items and save towards them gradually. This will prevent you from depleting your savings at once for a single purchase.

7. **Investing**: Once your retirement accounts are maxed out and you have a comfortable emergency fund, consider investing in a taxable brokerage account. Diversified index funds are a good place to start.

8. **Regular Check-ins**: Regularly review your spending, savings, and investment. This will help you stay on track and make necessary adjustments.

Remember, personal finance is personal. These are general suggestions and you should adjust them to fit your lifestyle and financial goals.
### Human
I have recently gotten a new job as a software engineer where I went from a $95,300 base plus about $12k in bonus (it varied) to a $125k base, $10,000 sign-on bonus, and up to 10% yearly bonus (depending on a lot of various factors) that I will get at the end of 2023. I will be immediately putting the $10k sign-on bonus into my emergency savings which are in a high-interest account at 4.1% and that should bump me up to a solid 6 months. I have $26,800 in student loans that I refinanced this year with an interest rate of 2.91%. I don't carry a credit card balance from month to month and have no car payment. I have a mortgage for a one-bedroom condo with a balance of $154k at 2.875% which is valued at around $220K.  My new job has a 401K that matches 100% up to 3% and 50% for the next 3%. Initially, when I started the new job on Dec. 19th, I put contributions at 10%. I have about 20K in the 401K from the old job that I am in the process of putting in a Rollover IRA. I also have about $3800 in a ROTH IRA that I opened in 2022. I have a 6 emergency fund once that sign-on bonus is deposited. I am looking for advice on what I should do with the new money coming in. I really want about a year in emergency savings but I also really want to max out my 401k contributions but not sure where I should focus or how I should split it. Maxing out the 401k would be contributing around 20% based on my calculations. 

&amp;#x200B;

I am also experiencing some lifestyle creep. I use YNAB and have been combing over my budget for the last year pretty closely. It seems that the biggest places I could see savings are eating out, groceries, clothing, and pet supplies. I got a puppy last year so there were a lot of expenses for that that should calm down. But my problem is that if I have the money for something expensive that I've been wanting (like new furniture this year :(  - I will buy it in cash and then not be able to save as much. I have never made this kind of money before and I want to be responsible but I am not sure how to balance the wants that I have and socking everything into savings. Any advice on how to manage this and budget for big expenses while also saving enough is welcome too. Or if there is anything else that I should be doing that I haven't thought of, please let me know! I just want a plan moving forward this year so that I can track my progress well.

### Assistant
Congratulations on your new job and increased income! Here's a plan that might help you balance your goals:

1. **Emergency Savings**: Since you already have a solid 6-month emergency fund, start slowly building towards a year. You don't need to rush this, as 6 months is already a good cushion. You could allocate a small portion of your monthly income towards this.

2. **401k Contributions**: Maxing out your 401k is a great idea as it provides tax advantages and your employer matches a portion of your contributions. The 2022 contribution limit is $20,500, so you may need to adjust your contribution percentage to hit this amount if you can afford it. 

3. **Roth IRA**: Since you're already contributing to a Roth IRA, try to max this out as well, which is $6,000 for 2022. This provides post-tax benefits and can be a good complement to your 401k.

4. **Student Loans and Mortgage**: Your interest rates are quite low on both, so while you should continue to make your regular payments, it's not necessary to prioritize paying these off early over maxing out your retirement accounts.

5. **Lifestyle Creep**: It's important to enjoy your increased income, but also to save and invest for the future. Consider setting a budget for discretionary spending each month and stick to it. You could also start a separate savings account for larger purchases, contributing a small amount each month.

6. **Budgeting for Big Expenses**: Set specific savings goals for big ticket items and save towards them gradually. This will prevent you from depleting your savings at once for a single purchase.

7. **Investing**: Once your retirement accounts are maxed out and you have a comfortable emergency fund, consider investing in a taxable brokerage account. Diversified index funds are a good place to start.

8. **Regular Check-ins**: Regularly review your spending, savings, and investment. This will help you stay on track and make necessary adjustments.

Remember, personal finance is personal. These are general suggestions and you should adjust them to fit your lifestyle and financial goals.<eos_token>