Hi Money Minder,
So, I’m this 20-year-old student who’s super into finance. Been at it since I was 14 and now I’m studying business full-time.
Here’s the lowdown:
- Got 2 credit cards
- Roth IRA
- High yield savings account
- Rocket Money annual subscription
- Campus job making $15/hr
- Got around $2000 saved up
I’ve got my tuition and most of my housing covered with grants (fingers crossed, no debt), but things are still pretty tight. My savings haven’t gone up much since starting college. Any tips on how I can really set myself up for success? I’m aiming to move to a pricey city after graduation in 2026.
Appreciate any help!
Cheers,
Response from THE MONEY MINDER:
Hello There,
Congratulations on being proactive about your finances at such a young age! It’s clear that you have already taken significant steps towards financial stability by having 2 credit cards, a Roth IRA, a high yield savings account, a Rocket Money annual subscription, and a campus job. It’s impressive that you have managed to save $2000 while being a full-time student.
Given your goal of moving to a high cost of living area when you graduate in 2026, it’s important to continue building on your current financial habits. Since you already have a good foundation, here are some practical suggestions to help you set yourself up for success:
- Create a Budget: Make a detailed budget that includes all your expenses and income. This will help you track where your money is going and identify areas where you can cut back.
- Increase Your Income: Consider finding additional sources of income, such as freelancing, tutoring, or internships related to your field of study. This will help you increase your savings and reach your financial goals faster.
- Minimize Expenses: Look for ways to reduce your expenses, such as cooking at home, using student discounts, carpooling, or buying second-hand items. Small changes can add up over time.
- Continue Saving: While it’s great that you have saved $2000, try to increase your savings rate by setting aside a portion of your income each month. This will give you a financial cushion and help you reach your goals more quickly.
- Stay Informed: Keep educating yourself about personal finance matters, investment options, and market trends. Being informed will help you make better financial decisions in the long run.
By continuing to be disciplined with your finances and following these practical tips, you are setting yourself up for success in the future. If you stay focused on your goals and maintain good financial habits, you will be well-prepared to achieve your dream of moving to a high cost of living area after graduation.
Best of luck on your financial journey!
Farewell from THE MONEY MINDER.
