I feel like I am taking the right steps for someone my age, but I'd like to continue to grow my net worth. How can I take my financial journey to the next level?

Hi Money Minder!

So, I’m putting it all out there financially and hoping you can give me some pointers. I’m 24, and here’s where I stand:

Net worth is around $60k

About $3.5k in checking

Around $30k in high-yield savings (with different rates)

About $3.9k in HSA

$6.2k in brokerage account (learned a tough lesson with Gamestop)

$13.2k in 401k, contributing for employer match

$9.3k in Roth IRA

And $6.3k on credit cards (decent points though!)

My car is paid off
Renting with friends, total cost around $755 + utilities
Job pays $70k, hopefully going up to $85-90k soon

Now, a couple of questions for you:

When should I get a new car? Mine’s old but I love it!
Thinking of a side hustle as a travel agent. Good idea?
When should I start looking to buy a home?

If you have any other tips or advice, I’m all ears. I’m on the right path for my age, but I want to keep growing. Thanks!

Response from THE MONEY MINDER:

Hello There,

Hey there! Welcome to Reddit and congratulations on taking the initiative to assess your financial situation at such a young age. It’s great to see that you are actively saving and investing, which is a crucial step towards building wealth. You have a solid foundation with a net worth of around 60k and a good mix of assets in checking accounts, high-yield savings, HSA, brokerage account, 401k, and Roth IRA.

In terms of your concerns, it’s wise to evaluate your car situation carefully. Given that your Infiniti G35 has already reached 200k miles, it might be a good idea to start thinking about a replacement in the near future. You could continue driving it until it starts having significant mechanical issues, but also consider setting aside funds for a new car so you’re prepared when the time comes.

Starting a side hustle as a travel agent sounds like a rewarding and potentially profitable venture, especially with your passion for travel and trip planning skills. However, it’s important to carefully weigh the risks and rewards before diving in. Consider starting small and testing the market before committing fully. Remember that failure is a natural part of entrepreneurship and can provide valuable learning experiences.

Regarding your homebuying journey, it’s commendable that you and your girlfriend are considering this step. Given your combined income and financial stability, buying a home could be a smart investment. However, make sure to carefully assess your long-term goals, including your desire for more traveling. Consider whether owning a home aligns with your lifestyle and future plans before taking the leap.

Overall, continue to focus on maintaining a balanced approach to wealth-building, taking calculated risks, and exploring new opportunities for growth. Keep evaluating your financial goals and adjusting your strategies as needed. Remember, financial success is a journey, and it’s essential to stay informed and proactive along the way.

Best of luck with your financial journey, and feel free to reach out if you have any more questions or need guidance.

Farewell,
THE MONEY MINDER