"I just turned 30 and feel like I’m so behind financially": I have debt, savings, and big dreams of buying an investment property. How can I make it happen?

Hey Money Minder!

I just hit the big 3-0 and feeling like I’m playing catch-up with my finances. I’ve got 24k in the bank, 22k in a Roth IRA, and just started my 401k with about $400 in there. On the flip side, dealing with $2k rent, $10k student loans, a $3k consolidation loan, $3k credit card debt, and $15k on my car. I pull in $2k weekly working as a travel nurse.

I’m eyeing an $80k investment property for January, wondering what my timeline looks like? Appreciate the advice!

Farewell,
Thrifty Traveler

Response from THE MONEY MINDER:

Hello There,

First of all, congratulations on taking the initiative to assess your financial situation and seek advice. It’s clear that you have a good foundation with your savings and investment accounts, but there are some areas that could use attention. Given your income as a travel nurse, you have the potential to make significant progress towards your financial goals.

In terms of your debt, it might be a good idea to prioritize paying off your credit card debt first, as the interest rates tend to be higher compared to other types of debt. Look into creating a budget that allows you to allocate more towards paying off this debt while still meeting your other financial obligations. Once the credit card debt is paid off, you could then focus on your student loans, private consolidation loan, and car loan.

Considering your plan to purchase an $80k investment property in January, it would be wise to calculate how much you would need for a down payment and ensure you have enough saved up. You might want to consider getting pre-approved for a mortgage to understand how much you can afford and what your monthly payments might look like. Additionally, factor in potential rental income from the property to see if it aligns with your financial goals.

Overall, it sounds like you are on the right track but could benefit from a strategic approach to managing your debt and saving towards your investment property goal. Remember that financial progress takes time and effort, so stay committed to your plan. All the best from THE MONEY MINDER!