Hi Money Minder,
I’m a 30-year-old guy from Los Angeles with around $200,000 spread across different investment and savings accounts. I bring in $6,500 a month after taxes thanks to my job in tech sales, where OTEs can vary wildly year by year.
These past three years have been my most financially rewarding since I started working 8 years ago after college. I made $129,000 in ’22, $139,000 in ’23, and I’m on track for $125,000 this year.
I live with family and chip in for the mortgage (which has a rate from 14 years ago) and other bills.
Here’s a breakdown of my expenses:
- House bills and other costs ($900)
- Car payment ($350)
- Car insurance ($160)
- Student loan ($205)
- Food and dining out ($350-400)
- Phone ($90)
- Random purchases ($150-200)
Debts & miscellaneous:
- Student loans ($12,000)
- Car loan ($13,500)
- Expecting a $25,000 settlement by the end of the year
I’ve been living with my family since finishing college, which has helped me save a lot. But now, I’m ready for a change. I’m eyeing travel or living on my own, but I want to make smart, calculated choices and not just act on impulse. I’ve saved up quite a bit at this point and would appreciate any thoughts or recommendations.
Farewell,
Taking the Next Step
Response from THE MONEY MINDER:
Hello There,
Congratulations on achieving such significant financial milestones! It’s clear that you have been diligent in saving and managing your finances over the years. Your willingness to seek advice and make thoughtful decisions is commendable.
Given your current situation, where you have saved a good amount and are looking to move towards independence, it’s essential to create a strategic plan for your future. Firstly, focus on paying off your debts, especially the student loans and car payment. By eliminating these financial obligations, you will free up more funds for your future endeavors.
Next, consider creating an emergency fund that covers at least three to six months’ worth of expenses. This fund will provide you with a safety net in case of unexpected expenses or changes in your income.
As you aspire for travel and living independence, start by setting specific financial goals and timelines for achieving them. Determine how much you need to save for your desired lifestyle and create a budget that aligns with these goals. Consider exploring investment options that can potentially grow your wealth over time.
Lastly, when making decisions about moving or changing your living situation, evaluate the practicality and feasibility of such choices. Consider factors like the cost of living in different locations, job opportunities, and your long-term financial goals.
Remember, financial independence is a journey that requires patience, discipline, and strategic planning. By staying focused on your objectives and making informed financial decisions, you are laying a strong foundation for a secure and fulfilling future. All the best from THE MONEY MINDER.
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