Hey Money Minder,
I’m 28 and making around 60K a year. Just moved back in with my folks to help out while my mom heals from an injury. They’re letting me stay for free so I can save up some cash. Right now, I’ve got 10K in debt (2K left on my car, 8K on credit cards). My Roth IRA is doing okay with 45K, putting in 10% with a 4% match from work.
So, once I’m debt-free, what should I do next? I’m looking to stay with my parents for about 1.5 years, then head back to Oregon. Any tips on what my financial moves should be? Appreciate the help!
Cheers,
Savings Savvy
Response from THE MONEY MINDER:
Hello There,
Hello,
First and foremost, it’s truly commendable that you’ve chosen to support your parents during this challenging time. Your selflessness is truly admirable. Regarding your financial situation, it’s great that you’ve made a conscious decision to pay off your debt. Clearing your $10K debt, particularly the high-interest credit card debt, should be your top priority. Once that is taken care of, you’ll have more financial freedom and can focus on building a solid foundation for your future.
Given your current situation, it’s crucial to create a solid financial plan. Since you’re living rent-free, you have the perfect opportunity to accelerate your debt payments and increase your savings. After paying off your debt, consider building up your emergency fund, setting aside 3-6 months’ worth of living expenses. Additionally, you might want to explore increasing your 401K contributions to take advantage of your company match.
With your move back to Oregon on the horizon, it’s important to start planning for that transition. Research the cost of living in Oregon, housing options, and potential job opportunities. Consider saving for moving expenses, a rental deposit, or purchasing a home if that’s part of your plan. Setting financial goals for this move and creating a budget will help you stay on track.
Remember, Rome wasn’t built in a day, and financial stability is a journey. Keep making smart financial decisions, and you’ll be well on your way to achieving your goals. All the best from THE MONEY MINDER.
