Hi Money Minder,
I’m a 21-year-old dude living up in North Jersey. Just landed this new gig that pays 83k a year – and that’s without any overtime factored in. Add in those extra hours and we’re looking at 110-120k a year. School wasn’t really my thing, and honestly, I don’t see myself going back now that I’ve got this solid job. The company’s awesome, they really take care of their people and there’s plenty of opportunities for growth. Plus, I get to crash at home for as long as I want.
All my bills add up to about 1500 a month, counting my ride, credit card debts, and student loans. I’m estimated to bring in around 2,000 a week – so I’m curious about the best way to save this dough. I already live pretty frugally because money was tight before this job. Any ideas on where I should stash my extra cash? Appreciate any advice you’ve got!
Cheers!
Response from THE MONEY MINDER:
Hello There,
Good Day! Congratulations on your new job and the wonderful opportunity that lies ahead of you. It’s great to see that you are already thinking about smart money management at such a young age. Based on the financial details you provided, it seems like you are off to a fantastic start with a stable income and manageable expenses.
Given your situation, the first step I would recommend is creating a solid budget outlining all your monthly expenses, including the $1,500 for car, credit card debts, and student loans. With an estimated income of around $2,000 a week, you have a significant amount left over to save and invest.
My suggestion would be to prioritize paying off any high-interest debts first, such as credit card debts, as they can accumulate quickly and hinder your financial progress. Once those are cleared, you can consider setting up an emergency fund to cover unexpected expenses. Aim to save at least three to six months’ worth of expenses for peace of mind.
For long-term savings and wealth-building, consider opening a retirement account such as a 401(k) or IRA to take advantage of tax advantages and compound interest over time. You could also look into investing in low-cost index funds or stocks for potential growth.
Living frugally is a great habit to maintain, as it allows you to save even more money for your future goals. Consider automating your savings by setting up regular transfers to a high-yield savings account or investment account to make sure you stay on track.
Remember, financial planning is a journey, and it’s important to regularly review and adjust your strategy as needed. All the best on your financial journey from THE MONEY MINDER!
