‘I don’t know what I should do with my money’: I just got a 70k job at 23 with no expenses. How can I plan for buying a condo and financial stability?

Hey Money Minder,

Just landed a job that pays 70k a year! I’m 23, debt-free, and just started building credit with my first credit card. Living with my folks, so no rent to worry about. I’ve got 4k in savings and minimal expenses like gas, hanging out with friends, and eating out.

This is my first real job, and I want to make smart moves with my money. I’m thinking of buying a condo within the next 1-2 years with some help from my parents for the down payment. Any tips on what I should do with my income to reach my goal? Thanks in advance!

Catch you later,
Future Condo Owner

Response from THE MONEY MINDER:

Hello There,

Congratulations on landing your first job with a solid yearly salary! It sounds like you are in a great position with no debt, no rent payments, and a healthy savings account. Starting to think about buying a condo at such a young age is a commendable goal, and having your parents assist with a down payment will definitely be a big help.

Given your current financial situation and goals, it’s essential to start building your credit history with your new credit card. Make sure to use it responsibly by paying off the balance in full each month to avoid high-interest charges. This will help you establish a positive credit score needed for future mortgage approval when you’re ready to buy a condo.

Since you have minimal expenses at the moment, I would recommend focusing on creating a solid financial plan. Start by setting a budget that includes saving a portion of your income towards your condo goal. Consider opening a high-yield savings account where you can keep your savings for the down payment, ensuring it earns some interest while you continue to grow it.

Additionally, it might be beneficial to explore investment options to make your savings work for you over the next 1-2 years. Look into low-risk investment vehicles like a high-yield savings account, certificate of deposit (CD), or a short-term investment fund. These can help grow your savings safely while keeping your money easily accessible when you’re ready to make the condo purchase.

Remember, financial planning is a journey, and it’s essential to stay disciplined, make informed decisions, and seek advice from financial experts when needed. Good luck on your journey to homeownership, and feel free to reach out for more personalized advice as you navigate this exciting financial chapter in your life.

Farewell from THE MONEY MINDER.