Hi Money Minder,
I need some advice on my current financial situation. I’m 24, about to start a job that pays $30 per hour in a high-cost-of-living state. I also have a side hustle that brings in $200-$350 per month with minimal time investment. Here’s a snapshot of my assets:
- Stock: $10,000 in a mix of growth ETFs, individual stocks, and dividend-focused stocks
- Savings: $30,000
- Roth IRA: $8,000 currently in TSP, but I’m considering moving it to Vanguard. I’m thinking of investing it in VTI or VOO
- Business accounts: $3,000
- Rental Property Equity: $22,000, but currently not collecting rent due to an eviction process. $62,000 is owed, with a potential cash flow of $100-$300 per month, and needs $5,000 in repairs.
EDIT: Monthly Fixed Expenses:
- Rental property mortgage: $803
- BJJ: $100
- Side Business operating cost: $24
- Car insurance: $229.06
- Gym: $37.31
- Game Pass: $20
Can you help me figure out how best to allocate my assets and manage my expenses? I’d appreciate any advice you can provide.
Thanks so much,
Financially Seeking Fun
Response from THE MONEY MINDER:
Hello There,
First of all, congratulations on securing a new job that pays $30 per hour, especially in a high cost of living state. It sounds like you have a good handle on your assets, including stocks, savings, Roth IRA, business accounts, and rental property equity. It’s great that you have a side hustle generating some extra income as well.
Given your financial situation, it’s important to prioritize managing your fixed expenses and addressing the rental property issues. With a monthly fixed expense breakdown, it’s clear that you have a good grasp on where your money is going each month.
For the rental property, it may be worth considering the potential cash flow once repairs are made, as it could provide a steady additional income stream. However, you need to carefully evaluate if the investment is worth it considering the ongoing repairs and the eviction process.
In terms of your Roth IRA, moving it to Vanguard and investing in VTI or VOO can offer you a diversified portfolio with low-cost index funds. This can help you grow your retirement savings steadily over time.
With your new job and side hustle income, it might be a good idea to focus on building an emergency fund with your savings and possibly investing a portion in other assets for long-term growth. Additionally, consider creating a financial plan that takes into account your short-term goals (like paying off repairs on the rental property) and long-term goals (retirement savings and investments).
Overall, it seems like you have a solid financial foundation, and with some strategic planning and prioritization, you can continue to grow your wealth and achieve your financial goals. Best of luck from THE MONEY MINDER as you navigate these opportunities!
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