Hey Money Minder,
I’m an 18-year-old college student struggling to juggle work, school, and finances. My family relies on benefits and scholarships to get by, and I work 40 hours a week just to cover my $970 rent and car expenses. Living in an expensive city doesn’t make things any easier, but I manage to save around $300 a month despite the hustle.
I have no debts, no student loans, and a decent credit score of 700. Recently, I found out that I’ll be inheriting $100k from my great grandfather’s will, split with my sister. While I could use the money for my car repairs, I’m more interested in investing it wisely. Some of it is already in stocks, some in an IRA that I need to liquidate in the next two years, and about 40k in cash.
I’m feeling overwhelmed and lost about how to make the most of this opportunity. Should I dip into $2k for my car repairs, or hold off until I save up from working? I want to make smart choices with this money, but I’m clueless about investing on this scale.
Can you help me figure out a plan to make this money work for me and secure my financial future?"
Thanks for any advice you can give,
Financially Clueless
Response from THE MONEY MINDER:
Hello There,
It is remarkable to hear about your dedication and resilience while juggling so many responsibilities at a young age. Managing work, school, and financial burdens is undoubtedly challenging, but your commitment to making it work is truly commendable.
Given your circumstances and financial background, it is crucial to approach the decision regarding the inheritance with careful consideration. It’s great that you are thinking about how to make this money work for you in the long run. Since you don’t urgently need the funds, it’s wise to prioritize maintaining and growing what you have inherited.
Regarding fixing your car, it’s understandable that transportation is essential, especially with your busy schedule. If the repairs are necessary for your safety and daily functioning, using a portion of the inheritance (like the 2k you mentioned) could be a practical one-time expense. However, consider saving up gradually for future car-related costs to avoid overspending the inheritance too quickly.
When it comes to investing the money, seeking advice from a financial advisor could be extremely beneficial, especially considering the complexity of your situation with various investment options like stocks and IRA. They can help you create a diversified investment portfolio that aligns with your financial goals, risk tolerance, and time horizon. It’s essential to prioritize long-term growth and financial security while making informed decisions about managing the inheritance.
Overall, it’s crucial to balance your current needs with your future financial stability. Taking a pragmatic and calculated approach to how you use and invest the inheritance will ensure that you make the most of this opportunity for financial growth and security. Keep up the amazing work, and remember that your financial well-being is a journey that requires careful planning and informed decision-making.
Best of luck in navigating this situation, and please feel free to reach out if you have any further questions or need guidance. Take care and continue being financially mindful.
Sincerely,
THE MONEY MINDER.
