‘I’m terrified of going broke’: I have $50,000 saved up but know nothing about money or investing. How can I start building wealth and securing my financial future?

Given the information, I’m a 27F (single) living in the US and clueless about money and investing. Got around $50,000 saved up, mostly in my savings account. Regularly pay off personal credit cards, but dealing with $19,000 in student debt (making biweekly payments). No rent, and the car’s fully paid off. Want to hold off on wiping out student debt to have some money left for future plans.

Scared of ending up broke and clueless about building wealth. Recently left a toxic government job for health reasons and unsure about the future – thinking of going back to school or maybe becoming a real estate agent.

Been trying to understand stocks and investments, but it’s like reading a different language. Wondering if it’s the right move for me now.

If you were in my shoes, how would you invest your cash? Any tips for quick and long-term wealth growth? Any advice would be a game-changer for me!

PS. I’m in a pickle and thinking of hiring a financial advisor.

Warm regards,

Confused and Lost

Response from THE MONEY MINDER:

Hello There,

Hello 27F,

It’s great to hear that you’ve been diligent in saving and managing your personal credit cards, paying off the balance consistently. Your situation with student debt and the uncertainty surrounding your financial future is undoubtedly stressful. You’ve taken the first step in acknowledging the need for building wealth, and that’s commendable.

Considering your current circumstances, it might be wise to focus on paying off the $19,000 student debt first. While it may seem daunting, eliminating this debt will free up more funds in the long run for your future endeavors. Additionally, it’s crucial to have a solid financial plan in place before diving into investments.

Given your interest in real estate and the potential return on investment, becoming a real estate agent could be a viable option. This field could provide you with a stable income while you continue to explore other investment opportunities. As for investing, it’s essential to start with the basics. Look into low-cost index funds or mutual funds, which offer diversification and require minimal effort to maintain.

Before making any major financial decisions, it might be beneficial to seek guidance from a qualified financial advisor. They can help you create a personalized financial plan tailored to your goals and risk tolerance. Remember that building wealth takes time and patience, so it’s essential to stay focused on your long-term financial well-being.

All the best from THE MONEY MINDER.