Hi Money Minder,
So, I just graduated and landed a job with a $120,000 salary, sweet $30,000 bonus, and $12,000 relocation package. But here’s the kicker – I borrowed $6,000 on credit cards at a crazy 30% APR and took $2,250 from friends to cover moving costs. Rent for a 1b1b apartment near work is $2,000-$2,500 per month, I have $10,000 in student loans hanging over my head, and need a car to get to work.
My bro offered me a spot in his 2b2b apartment an hour away for $1,600 per month, but we’re already butting heads after just a week together. I’m thinking of ditching the drama and moving closer to work, even if it means paying more in rent.
I’m new to this whole adulting thing, and this job opportunity is a game-changer for me and my family. I wanna make smart money moves and start building my financial future. What should I tackle first? Any tips or advice would be super helpful.
Farewell from Anxious Grad,
Response from THE MONEY MINDER:
Hello There,
Congratulations on landing such an incredible job straight out of graduate school! It’s truly a remarkable accomplishment and a testament to your hard work and dedication. However, I can understand that the financial aspects of relocating and starting a new job can be overwhelming.
First and foremost, I recommend prioritizing paying off the credit card debt with the 30% APR as soon as possible. High-interest debt can quickly spiral out of control, so it’s crucial to tackle it head-on. Consider creating a budget that allows you to allocate a significant portion of your income towards paying off this debt every month.
Next, if the $2,250 in loans from friends is not under a strict repayment timeline, you can focus on paying them back gradually while also considering the repayment of your student loans. Student loan debt is a long-term financial obligation that should be addressed strategically over time.
Regarding your housing situation, living closer to work can save you time, money, and stress in the long run, despite the higher rent. However, if living with your brother is a more financially feasible option and you can navigate the family dynamics, it could be a temporary solution to help you build a financial cushion.
As for purchasing a new car, consider exploring your commute options, such as public transportation, carpooling, or biking, to minimize the immediate financial impact of purchasing a vehicle. Given your current financial commitments, prioritizing essential expenses and debt repayment should take precedence over a new car purchase.
Remember, financial independence is a journey that requires careful planning and disciplined decision-making. Take advantage of the opportunity ahead of you, but also approach it with a clear focus on managing your finances effectively. Setting aside a portion of your income for savings and emergencies can provide a safety net as you establish yourself in your career.
Best of luck as you navigate this exciting new chapter in your life, and don’t hesitate to reach out for further financial guidance as needed.
Farewell from THE MONEY MINDER.
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