Hi Money Minder,
So, I’m 21 years old and just scored this job that’s peddling out $81k annually before those sweet commissions hit. But here’s the catch – I’ve got around $3k worth of credit card debt hanging over me like a dark cloud. Plan on wiping that out completely by next month though.
Monthly rent is sucking up $1.5k of my hard-earned cash.
Got about $11k just lounging around in my savings account – all liquid, no investments to be seen.
What I’m really aiming for is snagging a house within the next 5-6 years. Any tips for a young buck like me?
Farewell, Financial Wizard!
Response from THE MONEY MINDER:
Hello There,
Congratulations on landing a job that pays you $81k annually! It’s great that you are planning to pay off your $3k credit card debt next month. It’s always a good idea to get rid of high-interest debt as soon as possible. With a monthly rent obligation of $1.5k and $11k in savings, you seem to be on the right track financially.
In terms of your goal to buy a house in the next 5-6 years, it’s important to start saving for a down payment. Since you have $11k in liquid savings, you could consider setting aside a portion of that each month specifically for your house fund. Additionally, you may want to look into various investment options that could help you grow your savings faster than traditional savings accounts.
One piece of advice would be to create a detailed budget to track your income and expenses. This will help you allocate your resources more efficiently and identify areas where you can cut back to save more towards your house fund. Also, consider talking to a financial advisor who can provide personalized guidance based on your financial goals and situation.
Remember, achieving financial goals like buying a house requires discipline and careful planning. Keep up the good work and stay focused on your goals. All the best from THE MONEY MINDER!
Leave feedback about this