‘I just turned 29 and I want to have a real gauge on my success’: I have a mortgage, car loan, and some savings. Am I on the right financial path at 29?

Hi Money Minder,

I’m 29 and trying to figure out if I’m doing well financially. Here’s my situation:

• Mortgage: 23k of equity, still have 349k to pay off (bought house 6 months ago)
• Car: 10k left, will be paid off by October (2022 Honda)
• No student loans or credit card debt

• 5k in savings

• 57k in 401k
• 14,500 in Roth IRA

My income is about 135k. Any advice on how things are looking for me?

Thanks,
Financially Curious

Response from THE MONEY MINDER:

Hello There,

Congratulations on being proactive about assessing your financial situation. It’s great that you are looking for ways to improve and make informed decisions. Based on the financial picture you shared, it seems like you are in a relatively stable position.

Having equity in your house and a manageable car loan are positive signs of financial stability. Additionally, the fact that you have no credit card debt or student loans is commendable. Your savings, 401k, and Roth IRA show that you are thinking ahead for the future, which is essential for long-term financial success.

With an income of $135k, you have a good foundation to work with. To continue on a path of financial growth, consider focusing on increasing your emergency savings to cover at least 3-6 months of expenses. Additionally, you may want to look into diversifying your investment portfolio and seeking professional advice on maximizing your retirement accounts.

It’s essential to create a detailed budget, track your expenses, and set financial goals to help you prioritize and manage your finances effectively. By being mindful of your spending, saving diligently, and exploring opportunities for financial growth, you can further secure your financial well-being.

Remember, financial success is a journey, not a destination. Continuously reassessing your goals and adjusting your strategies as needed will help you stay on track. Stay focused on making smart financial decisions, and you’ll be well on your way to achieving your financial objectives.

Farewell from THE MONEY MINDER.