‘I am using my money wisely and looking for advice on what I can be doing better to set myself up for my 30s and onwards.’: I feel lost in conflicting financial advice. How can I plan for a secure future at 26?

Hi Money Minder,

I’m kinda lost when it comes to figuring out what to do with my money. It seems like everyone is giving me different advice, and the internet is all about selling rather than helping. Here’s where I’m at:

Age: 26

Income: $75,000

Rent: $1200 ($2000 total, Fiancé pays $800)

Car: Owned

CC Debt: $3000 0% apr until June 2025

Student Loans: $0

Education: Associates Degree

Credit Score: 760

Property: None

401k: $9000 (25% match up to 15% income, contributing 11%)

Stock Portfolio: $22,000 (inherited from grandparents)

Crypto: $500

Bonus: $3,000 (will pay off CC debt)

Collectibles: $25,000 (coins, trading cards, etc.)

Fiancé in graduate school, will start making $70k in 2 years

I feel like most of my money goes towards bills and unnecessary expenses. I’m putting 11% into my 401k, trying to cut back on unnecessary spending. I want to make sure I’m setting myself up well for the future without missing out on enjoying life now. Is it worth talking to a financial advisor?

Farewell,
Financially Confused

Response from THE MONEY MINDER:

Hello There,

Hello,

It’s great to see you taking proactive steps to secure your financial future. It’s completely understandable to feel overwhelmed with conflicting advice and information from various sources. First of all, congratulations on your sound financial habits, such as contributing to your 401k and having a solid credit score.

Given your current financial situation, it’s commendable that you plan to use your upcoming bonus to pay off your credit card debt and become debt-free. This is a crucial step in creating a solid financial foundation. Additionally, it’s impressive that you have a diverse portfolio, including stocks and other collectibles.

To optimize your financial health further, you may want to consider reallocating some of your disposable income towards building an emergency fund. Having a safety net of 3-6 months’ worth of expenses can provide peace of mind and financial security in case of unexpected circumstances.

Since you mentioned that a significant portion of your income goes towards covering bills and going out to eat, it might be beneficial to create a budget and prioritize your spending on essential expenses while also setting aside a portion for savings and investments. Meal prepping is a fantastic way to save money and reduce unnecessary expenses on dining out.

Considering your fiancé’s future income potential after graduating, it would be wise to discuss your combined financial goals and develop a strategy for managing finances jointly. Engaging with a financial planner or advisor could provide valuable insights tailored to your specific circumstances and help you optimize your financial plan further.

In conclusion, continue with your prudent financial decisions, pay off your remaining debt, build an emergency fund, and maintain a balanced approach towards saving and spending. Personalized financial advice can offer additional guidance in aligning your financial goals. All the best from THE MONEY MINDER.