‘Be honest, how am I doing?’: I make $50,000 a year, unsure about future career and financial goals. How can I optimize my assets and plan for the future?

Hi Money Minder,

I would love an honest assessment of how I’m doing finance-wise and any recommendations you have for me in the future.

I don’t have any older trusted person in my life that I feel comfortable sharing my full economic picture with, so I’m reaching out to see if you can help me out. Thank you in advance!

I am 26F with a masters degree in counseling. I’m currently working in a food service position that pays me around $50,000 a year. I’ve tried working in my field briefly, but it’s not for me (expensive mistake, I know).

I don’t want to stay in this food service position forever, but I’m not sure where to go next. I’m undecided if I need to invest in additional education or take a pay cut to switch industries.

Here’s a breakdown of my finances:
– Income: net $50k a year
– Debt: none
– Retirement: $7,500 (Roth IRA)
– Stocks: $3,500 (Robinhood)
– Bitcoin: $1,350 (Coinbase)
– Cash: $1,000
– Silver: $10,630
– Checking account: $4,900
– Savings account: $17,900

I don’t have my expenses fully calculated, but I can cover them each month. My rent is $850/month.

I rent an apt. with no plans to save for a house at the moment, but who knows what the future holds. Any tips on saving for a house as a contributing partner would be great!

My situation isn’t dire, but I’m not sure how it compares to others my age. I’d love advice on how to optimize my assets. Any comments or suggestions are welcome! Thank you!

Seeking Help

Farewell sought and declined.

Response from THE MONEY MINDER:

Hello There,

Thank you for reaching out and sharing your financial situation with us. It’s great to hear that you are debt-free and have a comfortable amount of savings at your age. However, it’s also understandable that you are looking for guidance on how to optimize your assets and plan for the future.

Firstly, kudos to you for having a clear view of your current financial status and goals. Your income and expenses seem to be well-balanced, and it’s excellent that you don’t have any outstanding debt. Having a stable job that pays you decently is a significant advantage, and it’s wise that you are considering your next career move proactively.

In terms of your investments, it’s commendable that you have started building your retirement fund through a Roth IRA and invested in stocks, Bitcoin, and silver. However, it’s essential to diversify your portfolio further and ensure that you are keeping up with market trends and making informed investment decisions.

When it comes to planning for buying a house in the future, it’s great that you are already thinking about it. Start by setting a savings goal for a down payment and consider factors like location, property prices, and mortgage options. As a contributing partner, it’s recommended to save at least 20% of the property’s value for a down payment to avoid private mortgage insurance and secure better loan terms.

Moving forward, it might be helpful to create a detailed budget to track your expenses accurately and identify areas where you can save or invest more. Consider seeking advice from a financial advisor to get personalized recommendations based on your goals and risk tolerance.

In conclusion, you are in a good financial position for your age, and taking a proactive approach to managing your finances will set you up for long-term success. Keep up the good work and continue to educate yourself on financial literacy to make informed decisions. Remember, it’s not about how you compare to others but about building financial stability on your terms. All the best from THE MONEY MINDER!