Hey Money Minder,
So, I’m a 28-year-old server who’s also hitting the books for a business management degree. Living that student life, you know? I don’t own a house, got about $9,000 in credit card debt, $16,000 in stocks, and maybe $1,000 in the bank. Oh, and I owe my sis 5,000 for my wheels.
Got a potential 100k inheritance coming my way from grandma’s estate and I’m kinda lost on what to do with it. What’s my first move here, and how do I set myself up for financial success in the long run?
Gotta sort out that credit card and car debt, obviously. But what’s the best way to make my money work for me?
Cheers,
Response from THE MONEY MINDER:
Hello There,
Congratulations on being in a position to potentially inherit a significant amount from your grandma’s estate. It’s great that you are already thinking about how to manage this money wisely. Firstly, clearing your credit card and car debt should be a top priority. High-interest debt can quickly eat into any potential gains from your inheritance. Once you have paid off these debts, it’s essential to build an emergency fund with at least 3-6 months’ worth of living expenses in your bank account. This will provide financial security and prevent you from going into debt in the future.
Next, consider investing a portion of your inheritance in a diversified portfolio of low-cost index funds or ETFs. This can help your money grow over time while minimizing risk. Since you are still studying for a business management degree, you may have a good understanding of investment options. However, seeking advice from a financial advisor could also be beneficial.
As you are working in fine dining, it might be worth looking into retirement savings options like a 401(k) or IRA. Investing in these accounts can provide tax advantages and help you build a nest egg for the future. Remember to continue saving and investing regularly to grow your wealth over time.
In summary, pay off high-interest debt, build an emergency fund, invest wisely, consider retirement savings, and continue to educate yourself on financial management. Taking these steps can help you maximize your money and set yourself up for a secure financial future. All the best from THE MONEY MINDER.
