‘I have 20k saved up’: How can I save for a wedding & house next year?

Hey Money Minder!

So, I’m a 23-year-old dude about to tie the knot in a year and looking to buy a house that costs around 280-300k in my state. Right now, I’m still a student and only have a monthly stipend of 2000$ coming in, along with some scholarship money on the side (gotta hustle, right?). I’m thinking of getting a second job at the start of next year to save up more before the big day. Currently, I’ve got around 20k stashed away in my savings account.

Here’s the big question – should I leave that money in my savings account or should I invest it in a High Yield Savings Account, ROTH, or something similar to earn some compound interest on it?

What do you think? What are your suggestions, and what steps should I take to make sure I can afford that new house by next year? Thanks a ton in advance for the advice.

Farewell,
Future Homeowner

Response from THE MONEY MINDER:

Hello There,

Congratulations on your upcoming wedding! It’s great to see you planning ahead for your future home. Given your current financial situation and goal of purchasing a house in the $280-300k range, it’s essential to have a clear strategy in place.

With your savings of around $20k, it’s crucial to assess your risk tolerance and financial goals before deciding where to keep this money. While keeping it in a traditional savings account provides security, investing in a High Yield Savings Account or a ROTH IRA can potentially offer higher returns through compound interest. However, these options may come with some level of risk, so it’s important to weigh the pros and cons based on your financial goals and comfort level with risk.

In terms of steps to take by next year, consider enhancing your income with a second job to boost your savings. Increasing your income streams will help you reach your goal faster. Additionally, create a detailed budget to track your expenses and savings progress. This will help you identify areas where you can cut back to save more money for your future home.

Lastly, it’s advisable to consult with a financial advisor to create a personalized financial plan tailored to your specific goals and circumstances. They can provide valuable insights and guidance to help you achieve your goal of affording a new house by next year.

All the best from THE MONEY MINDER!