Hi Money Minder,
I need some help figuring out how to manage my savings better and what my next steps should be. I feel like I’m falling behind and could really use some guidance.
- At 21, I left college for a job and only had $800 to my name.
- Now, at 24, I’m making just under 100k a year and have 50k in my savings account with 2.5k in my brokerage account.
- I haven’t been contributing to my 401k since my company doesn’t match.
- My monthly expenses add up to around 3.2k.
- I only have 4k in debt left from school and no credit card debt.
- I live alone and haven’t had much time off after working over 80 hours a week for the past few years. I’m feeling pretty miserable being away from friends and family.
I’m thinking about moving back home and finishing my degree. I feel like I need to make a decision on what to do with my savings and figure out my next career move.
In the end, I’m torn between going back to school or using my work experience to find a new job. I could really use some advice on how to start investing my savings.
Thanks for your help!
Retired and Happy
Response from THE MONEY MINDER:
Hello There,
Congratulations on your achievements so far! It’s impressive how you’ve managed to climb the career ladder and build up your savings at such a young age. However, I can understand the sense of feeling overwhelmed and disconnected due to your current situation. It’s important to prioritize your well-being and happiness alongside your financial goals.
Moving back home to finish your degree sounds like a valid option to consider, especially if it aligns with your long-term career aspirations. Education is an investment in yourself that can open up new opportunities in the future. On the other hand, leveraging your current experience to explore new job opportunities could also be a viable path forward.
When it comes to managing your savings, it’s crucial to have a clear plan in place. With your monthly expenses totaling around 3.2k and minimal debt, you have a solid financial foundation to work with. Since your company doesn’t match 401k contributions, you might want to explore other retirement savings options such as an IRA to further grow your nest egg.
As for investing your savings, it’s essential to consider your risk tolerance, investment goals, and time horizon. Diversifying your portfolio with a mix of stocks, bonds, and other assets can help mitigate risk and potentially increase returns over the long run. If you’re unsure where to start, seeking advice from a financial advisor could provide valuable guidance tailored to your specific situation.
In conclusion, whether you choose to pursue further education or explore new career opportunities, make sure to prioritize your well-being and financial stability. Taking a pragmatic approach to managing your savings and investments can help you navigate your next steps with confidence. Best of luck with your decision-making process, and all the best from THE MONEY MINDER.
