<prompt> Human: I just graduated college and will be starting full time this summer in Houston. I know I need to invest in my companys 401K plan but what else should I do to set myself up in the short term and in the long term. Ill be making 70,000 in the first year with a 10,000 signing bonus. I have no loans at the current moment. Also, should I rent or buy? TIA.  <response>: I assume the 10,000 signing bonus is a way to reimburse you for your relocation. With that in mind, I would use the net bonus to reimburse yourself for relocation, use some of it to update your wardrobe if necessary, for your job and put the rest in a secure savings account to serve as your emergency fund. With your 70k a year, if you contribute 1037; to your 401k, you should net around 55k this may be low since TX has no state or local income taxes, but I think its close. If we round down to 54k, its easier math for monthly budgeting. Lets assume youll bring home 4,500 a month.I would not buy; a first job out of college is one that you will stay at for a few years and then move on. Having a house would potentially limit your ability to grow your career through location changes. A salary of 70k would mean you shouldnt get a place more expensive than 200k anyway, which would, itself, be very limiting. I would rent until you build up your major purchase war chest and grow your income.In terms of budgeting, pay yourself first. Save at LEAST 1037; preferably higher, but 1037; is a nice round number for your 401k. Utilize other tax shelters such as an HSA if you have a high-deductible health plan, so that your expenses can be paid with pre-tax dollars. And make sure you are saving after tax, as well. Personally, 1037; of take-home pay is my target; set up an automatic transfer for 450mo 225 per pay if youre paid semi-monthly. You will likely want to take fun vacations and make a few frivolous purchases. This is completely, 10037; okay if you save up for it and dont take on unnecessary debt. As you build that account up, look into other options like investment or CDs to store your money for longer-term purchases like a home.Follow some rules of thumb. For example, dont spend more than 13 of your take-home pay on housing; if rent includes utilities, then feel free to spend up to 1,500; otherwise, keep rent at or below 1,100. Roommates are great to keep housing costs down, so Id recommend exploring that. Most people drive in Houston, so if you need to get a car, try to put 2037; down and take on a four-year or shorter loan with payments of 450mo or less. 