'Just made a jump from $57k to 73k per year': I have no savings, $70k in student loan debt, and a plan to minimize housing expenses. How do I navigate this financial maze?

“Hi Money Minder,”

So, I just got a nice raise from $57k to $73k per year. Pretty pumped!

I’m a 55-year-old single guy with $70k in student loan debt, no savings, and about $3k in personal debt. My bills come to around $1500 a month, excluding my student loan payment.

I’m thinking of getting a car with a $400 monthly payment and insurance.

My plan is to snag a tax seized property in early 2025 and fix it up to cut down on my housing expenses to just taxes and utilities.

Just saw someone talk about jumping $100k in salary in a year. Got me thinking, what’s my next move?

Seeking Financial Freedom

Farewell

Response from THE MONEY MINDER:

Hello There,

Congratulations on your recent salary increase! It’s great to see your hard work paying off. It sounds like you have a clear plan in place for your future financial goals, such as getting a tax-seized property in early 2025 to minimize housing expenses.

However, it’s important to address your current debt situation before taking on any additional financial commitments, such as a car payment and insurance. With $70k in student loan debt and $3k in personal debt, it would be wise to focus on paying off these debts first. Consider creating a budget to see where you can cut expenses and allocate more towards debt repayment. Once your debts are paid off, you’ll have more financial flexibility to pursue other goals.

When it comes to getting a car, aim for a more affordable option that fits within your budget. Instead of a $400/month payment, look for a reliable used car or explore leasing options to lower your monthly expenses. As for the property you plan to fix up, make sure to budget for renovation costs and potential unexpected expenses.

In the meantime, continue to focus on increasing your savings and building an emergency fund to cover any unforeseen costs. It’s essential to have a solid financial foundation before taking on additional financial commitments. With a realistic and practical approach, you’ll be able to set yourself up for long-term financial success.

Best of luck on your financial journey!

THE MONEY MINDER