Hi Money Minder,
So, I’m 25 years old and making $85K a year. I’ve got $63K in my Vanguard brokerage account, $28K in my HYSA, $10K in my Roth IRA, $3K in checking, and $600 in my business bank account. On the flip side, I’ve got $18K in student loans, but no credit card debt, car, or girlfriend. Oh, and I still live with my folks, but it’s all good vibes there.
Now, should I even think about moving out of the nest as my next big move?
Thanks, Future Flyer
Response from THE MONEY MINDER:
Hello There,
Hello,
It sounds like you are in a good financial position for your age, with a solid salary and a healthy balance in various accounts. Considering your current situation, moving out may not necessarily need to be at the top of your list of things to do next. Living with your parents is a great way to save on expenses, especially when you have student loans to pay off.
One practical approach could be to focus on paying off your student loans. With $18K in student loans and no credit card debt, tackling this debt first could be a smart move to free up more of your income for future savings and investments. Additionally, consider increasing your contributions to your Roth IRA or exploring other retirement savings options to maximize your long-term financial growth.
While it’s important to eventually transition to living independently, taking the time to build a solid financial foundation now can set you up for greater success in the future. Once you feel more comfortable with your financial position and have a clearer understanding of your future goals, moving out can be a more achievable milestone.
Remember, everyone’s financial journey is unique, so take the time to assess your own priorities and make decisions that align with your long-term goals. All the best from THE MONEY MINDER in your financial endeavors!
