Living at home for now, but dreaming of a house. How much should I save per month for a house in New Jersey? When should I move out? Should I get an apartment?
Thinking of getting my first credit card at 22. Any advice on adulting, managing money, saving, and being financially secure?
Later,
Savvy Saver
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating and starting your new job as a BSN nurse! It’s great that you have already outlined your monthly expenses. It shows you are proactive in managing your finances. Since you live at home and don’t have to pay rent, this gives you a great opportunity to save for your future goals, like buying a house in New Jersey.
To save for a house, it’s recommended to aim to save at least 20% of the house’s expected value for a down payment. Given your income and current expenses, it’s wise to create a budget that includes a specific amount to put away each month towards your house fund. Additionally, it’s essential to build an emergency fund to cover unexpected expenses and to start contributing to retirement savings early on.
Living at home can be a great way to save money for a house but consider discussing a timeline with your family on when it might be the right time to move out. Opening a credit card is a good idea to start building credit, but remember to use it responsibly and pay off the balance in full each month to avoid high-interest charges.
In terms of managing your money efficiently, a good rule of thumb is the 50/30/20 budgeting rule where you allocate 50% of your income towards needs, 30% towards wants, and 20% towards savings and debt repayment. It’s also important to track your expenses, set financial goals, and avoid unnecessary debt.
Remember, financial security takes time and discipline, so be patient with yourself as you navigate this new chapter of adulting. If you have any more questions or need further guidance, feel free to reach out. Best of luck on your financial journey!
Farewell from THE MONEY MINDER.
