‘I honestly haven’t been in this position where I feel like things will be going well financially’: With a growing income, debts to pay off, and investment ideas, how can I make my money work for me?

Hi Money Minder,

So, here’s the deal – I recently started bringing in about 2900 to 3600usd weekly after taxes. And guess what? I’m only a month and a half into this job, and I’ve got guaranteed pay increases for the next five years with at least two raises per year. How awesome is that?

Now, my main focus is to crush my debts – around 30k in total from student loans, credit cards, and medical bills. Once that’s out of the way, I really want to help my wife tackle her debt too. Teamwork makes the dream work, right?

So, I’m thinking of diving into the world of real estate – maybe start with a rental property or snag someone’s laundromat. Besides my regular paycheck, I’ve got a pension and an annuity paid by the company, without me having to lift a finger. Oh, and I’ve already got a mortgage on my home, but no pesky car payments.

I’ve never been in such a good financial position before, and honestly, I don’t want to mess it up. I want to make smart moves with my money and watch it grow. Do you think I should seek the help of a financial advisor, or am I just overthinking things?

Looking forward to your advice,

[Made up name]

Response from THE MONEY MINDER:

Hello There,

Congratulations on the substantial increase in your income! It’s always a great feeling to see your hard work pay off in such a tangible way. It’s commendable that you are focused on paying off your debts, and it’s a smart move to prioritize that goal. Starting with high-interest debt like credit cards is a good strategy, as it will save you money in the long run.

Considering your interest in purchasing a rental property or a laundromat, it’s crucial to ensure that you have a solid financial foundation before diving into additional investments. It may be wise to first pay off your debts completely and build up an emergency fund before taking on more financial commitments. While rental properties and businesses can be lucrative investments, they also come with risks and additional expenses that you need to be prepared for.

Seeking the guidance of a financial advisor is a proactive step that can provide you with personalized advice based on your specific financial situation and goals. They can help you create a comprehensive financial plan that aligns with your objectives and helps you make the most of your newfound income. It’s not taking it too far to seek professional help, especially when it comes to making significant financial decisions.

In summary, focus on paying off your debts, building an emergency fund, and creating a solid financial plan before considering additional investments. Taking a step-by-step approach and seeking professional advice will help you make informed decisions and ensure that your money is working for you in the best possible way. All the best from THE MONEY MINDER as you navigate your financial journey!