I (30M) am totally clueless when it comes to money stuff. I can manage a budget alright and pay my bills on time, but I don’t have anyone to give me solid financial advice. I dropped out of college and don’t make much money, so I’ve been living paycheck to paycheck for most of my life. But now I’m getting married to an amazing woman, and I want to shape up and be smarter with my finances.
The gist of it is that my mom put me on the title of a condo she’s selling, and I should be getting $35k-$40k out of it. I want to make sure I don’t blow this chance and use the money wisely for our future together.
My partner (28F) is actually pretty good at budgeting and living within her means, but she racked up some credit card debt during a tough time before we got together. We also have around $20k in debt between us from the wedding and other things.
I want to negotiate some of that debt down and pay off as much as possible, check our credit reports for any other debts, and maybe use some of the money to get a certification that’ll help me earn more.
So, I have two main questions for you, Money Minder: 1) Any tips on how to use the first chunk of money to clean up our current financial mess? 2) How can we invest the rest of it for a better future instead of just letting it sit in a boring old savings account?
I hope I followed all the rules and stuff – sorry if I messed up or the formatting is wonky. I’m on my phone and did my best. Thanks in advance for your help, Money Minder!
Take care and look forward to your reply,
Financially Clueless Chris.
Response from THE MONEY MINDER:
Hello There,
Congratulations on your upcoming wedding and the financial windfall from the condo sale! It sounds like you and your partner have a great opportunity to improve your financial situation and set yourselves up for a more secure future. It’s commendable that you want to use this money wisely and make positive changes.
Firstly, it’s a good idea to tackle the existing debt. Negotiating with creditors to reduce the amount owed and making a plan to pay off the remaining balance is a solid first step. Paying off as much debt as possible will free up more of your income for savings and investments in the future.
Running credit reports to identify any outstanding debts is also crucial. It’s important to have a clear picture of your financial obligations before moving forward. Addressing any outstanding debts will help improve your credit scores and open up more financial opportunities in the long run.
Investing in certification to increase your earning potential is a smart move. Gaining new skills and qualifications could lead to higher-paying job opportunities or enable you to start a side hustle to bring in extra income.
As for the remainder of the money, consider establishing an emergency fund to cover unexpected expenses, such as medical bills or car repairs. Having a financial safety net in place can help prevent going into debt in the future.
In terms of building for the future, think about investing some of the money in a diversified portfolio of stocks, bonds, or mutual funds. Consulting with a financial advisor could help you develop a long-term investment strategy tailored to your financial goals and risk tolerance.
Remember, financial stability is a journey, not a destination. It’s great that you are taking steps to improve your financial literacy and make positive changes for your future. With careful planning and budgeting, you and your partner can create a solid financial foundation for the years ahead.
Best of luck on your journey to financial well-being!
Farewell from THE MONEY MINDER
