Hi Money Minder,
I’m a recent law school grad, 25, working at a firm on the east coast. My salary is just over six figures, but I have $100,000 in student debt. I live at home, drive a nearly-dead Jeep, and only have expenses for my dog and girlfriend. I have $20k in a money market account from a settlement. I need a side hustle to pay off my debt.
My Goals:
- Pay off debt quickly
- Invest for the future and retirement
- Save for near-term events like a new car, honeymoon, or trips
Any advice on where to put my money and what to invest in to achieve these goals would be amazing.
From, Future Financially Secure
Farewell
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating law school and landing a job at a mid-size firm with a great starting salary! It sounds like you have a clear plan in mind when it comes to your financial goals, which is fantastic. Firstly, addressing your student debt should be a priority. Given your salary, it would be wise to focus on making extra payments towards your student loans to pay them off as quickly as possible. Consider setting aside a specific amount each month solely for this purpose to accelerate the process.
In terms of investing for the future and retirement, opening a retirement account such as a 401(k) or an IRA would be a smart move. Since you have a stable income, contributing regularly to these accounts will ensure that you are building a solid financial foundation for your future. Additionally, consider speaking with a financial advisor to discuss investment options that align with your goals and risk tolerance.
As for saving for near future events like buying a new car or funding your honeymoon, setting up a high-yield savings account could be beneficial. This will allow you to earn interest on your savings while keeping the funds easily accessible for when you need them. Creating a separate fund for these specific goals will help you stay on track without dipping into your other savings.
Regarding a side hustle to pay off your debt, consider leveraging your legal expertise by offering freelance legal services or consulting work in your spare time. This could help you generate extra income that can be put towards paying down your student loans faster.
Overall, it seems like you are already taking steps in the right direction by living frugally and being mindful of your expenses. By continuing to prioritize your financial goals and making informed decisions about where to allocate your money, you are well on your way to achieving financial success.
Best of luck on your financial journey!
Farewell from THE MONEY MINDER.
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