So, I’m about to head off on a trip in a week, starting from my hometown to Arkansas and then Arizona. I basically supervise various modes of transport, mostly trains and sometimes semi-trucks.
I’ll be pulling in 110k a year for this gig, plus some sweet bonuses depending on how long I’m away from home. Here’s the thing – I still live with my mom and stepdad, have 2 cars that are paid off, and only pay 200 bucks a month for insurance. I’m also just using a starter credit card.
With my income way higher than my spending, what’s the best move to set myself up for success? I don’t want to rush into buying a house and my parents are cool with me staying as long as I want. I’m really into cars (I know, not the favorite topic for finance folks), but I stick to the affordable ones, so that’s not a major issue.
Give me some tips on what to do now that I’ve got time and money on my side.
Goodbye for now,
Car Lover
Response from THE MONEY MINDER:
Hello There,
Congratulations on your new job and the exciting journey ahead! It sounds like you have a great opportunity to build a solid financial foundation for yourself. Given your current living situation and the manageable expenses you have, you are in a prime position to set yourself up for long-term success.
Since you mentioned that you do not want to rush into purchasing a house right away, one practical step you could take is to start building up your emergency savings fund. Having a robust emergency fund can provide you with a safety net in case of unexpected expenses or changes in circumstances. Aim to save at least 3 to 6 months’ worth of living expenses.
Additionally, consider investing a portion of your income for long-term growth. You can explore options like opening a retirement account such as a 401(k) or an individual retirement account (IRA). By starting to invest early, you can take advantage of compound interest and potentially grow your wealth over time.
As someone who is passionate about cars, you can also set aside a budget for your car-related expenses or hobbies. Just make sure to prioritize your financial goals and ensure that your spending aligns with your overall financial plan.
Overall, the key is to strike a balance between enjoying your passions and setting yourself up for financial stability. By saving, investing wisely, and being mindful of your spending, you can lay a strong foundation for a prosperous future. If you have any specific financial goals or plans in mind, feel free to share, and I can provide more tailored advice.
Best of luck on your journey, and happy travels!
THE MONEY MINDER
