Just started a new job only making 43k per year but it’s a temporary solution for the future!

[rosemeka13]

I (23M) have just gone through a month of unemployment and ready to start a fresh new new job and life. I currently have 2k worth credit card debt, 1900 in a personal loan debt and 798 in student loan debt. At that point because I have a new job I wanted to start a new life so I am planning to drive and save for a home. Certainly need help where to start, should I pay off all the loans off first? Or should I just snow ball or avalanche them quicker? I currently make 1500 biweekly paycheck.

 

[whatwouldhedo]

@rosemeka13 Based on the limited details, pay off the loans first, credit card first because of the high interest. You need to provide more details because everyone’s situation is different. I would also suggest a side hustle like doordash to pay off this debt faster and be done with it.

Are you living with parents? Paying rent? How much? How much are your car payments? Food expenses? What are your financial goals? Are you interested in retiring early or at 65?

After you are done with your debt, you should begin to budget. This will obviously depend on your financial goals but you need to allocate a certain amount of money to an emergency fund so that if anything bad happens your investments won’t get eaten into. Then you need a retirement account like a ROTH IRA or IRA, and put as much money as you can in. Obviously you have a small income but you can still contribute some money to it. And buy Stock market etfs like VT, VOO, QQQ in the account. Otherwise your money is just sitting there. And also suggest checking your company’s 401k out.

If you want more specific advice, you need to go into more detail on your situation.

 

[rosemeka13]

@whatwouldhedo Yea sounds great so far… I currently live with my parents, no car payments, no rent, no food expenses, health insurance by law I live in Philadelphia will end at the age of 26 and then I’d have to purchase my own health insurance. I am financially literate and I helped my parents purchased two additional rental homes so I have shared equity in that… I have 80k in Roth IRA, 200k worth of stocks that I have accumulated over 4 years.. and I’ve decided at my age to slowly approach the real estate investing game…

 

[whatwouldhedo]

@rosemeka13 Wow very impressive! Super similar situation. I live with my parent too so that has given me a great opportunity to save and invest. Although I am younger so I am not at the same level as you. You sound like you’re doing great, why are you asking for advice? Haha.

I would say that since you have no financial obligations, take advantage of them. Pay off your debt quickly and efficiently by contributing as much as possible and then look for a rental property to purchase. I was looking in Ohio and they have great options there for lower cost property that still have great returns if you are interested in out of state investing. Or you could buy a duplex somewhere closer to you and rent it out to tenants and actively manage it to optimize your profits. Additionally, this home could double as a house for you when you’re ready to move out. You could live in one side and rent the other. Or you could just continue to live with your parents and slowly accumulate properties.

 

[rosemeka13]

@whatwouldhedo Yea that sounds great! I always like a second opinion and the best way to tackle my problem

 

[whatwouldhedo]

@rosemeka13 Don’t worry you seem to have a smart head on your shoulders. You’re doing great.