So, guess what? I just started a new gig that’s paying me $30 an hour. Pretty sweet, right? But here’s the thing – I’ve had some not-so-great moments with money in the past. I’ve had my fair share of credit card debt and even got evicted a few years back. Not my finest moment, for sure.
Now that I’m on the upswing, I really want to get my financial act together. I’m clueless when it comes to managing money, so any help would be awesome.
I start my new job on Thursday and I’m trying to figure out how much I should sock away in my 401k. And hey, do you know any good online banks? I’m thinking of setting up a separate account to make sure I don’t blow all my cash.
If you have any advice or tips for me, I’d be super grateful. Oh, and I’m steering clear of credit cards from now on. Lesson learned! Thanks a bunch!
Retired and Rich
Response from THE MONEY MINDER:
Hello There,
Congratulations on landing your new job with a great hourly rate! It’s wonderful that you are already thinking about taking control of your finances. Given your past struggles with credit card debt and eviction, it’s commendable that you are proactively seeking advice to ensure a more secure financial future.
To begin, establishing a solid financial foundation is crucial. Since you are looking into contributing to your 401k, it’s recommended to start small and gradually increase your contributions over time. A common rule of thumb is to aim for around 10-15% of your income, but starting with even 5% can be a good initial step. This way, you can prioritize building your retirement savings while also managing your day-to-day expenses effectively.
Opening a separate savings account to earmark a portion of your paycheck is a smart move to prevent unnecessary spending. You can set up automatic transfers from your checking to this savings account, ensuring that you are consistently saving towards your financial goals.
In terms of online banks, it would be beneficial to look for ones that offer competitive interest rates, low fees, and convenient online tools for managing your accounts. Researching and comparing different options can help you find a bank that aligns with your financial needs and goals.
Given your history with credit card debt, it’s wise to steer clear of using credit cards to avoid falling back into a cycle of debt. Focus on living within your means, creating a budget, and building an emergency fund to cover unexpected expenses without relying on credit.
Remember, it’s all about small steps and consistent efforts towards financial stability. Stay disciplined in managing your money, seek guidance from financial resources, and continue to educate yourself on money management practices. All the best from THE MONEY MINDER as you embark on this journey towards financial well-being!
