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Hello all, please help. I consider myself a fiscally responsible citizen who spends money wisely most of the time. I am 24 years old, recently married, no kids, and both me and my wife work as teachers in a small town in Illinois.
We currently rent a home at about $450/month minus utilities; we have one car loan at $18K, grad school student loans at $11K, and together we make around $70,000/year. We recently received an inheritance check worth $8,000 and deposited it in savings.
However, I can't help but wonder...
- Is our money in the right spots? We have no investments, savings bonds, etc.
- Should we attack my debt right away or let it accumulate?
- It's a great time to buy a house; should we take the plunge?
I'm feeling somewhat overwhelmed by everything; we have money but I'm just not quite sure where exactly the money would be best placed to secure our financial future. So what do you think? Should I look into a financial advisor or planner? Or is there an easier solution for our situation?
Hello all, please help. I consider myself a fiscally responsible citizen who spends money wisely most of the time. I am 24 years old, recently married, no kids, and both me and my wife work as teachers in a small town in Illinois.
We currently rent a home at about $450/month minus utilities; we have one car loan at $18K, grad school student loans at $11K, and together we make around $70,000/year. We recently received an inheritance check worth $8,000 and deposited it in savings.
However, I can't help but wonder...
- Is our money in the right spots? We have no investments, savings bonds, etc.
- Should we attack my debt right away or let it accumulate?
- It's a great time to buy a house; should we take the plunge?
I'm feeling somewhat overwhelmed by everything; we have money but I'm just not quite sure where exactly the money would be best placed to secure our financial future. So what do you think? Should I look into a financial advisor or planner? Or is there an easier solution for our situation?
Thanks!!
What interest rate is the car loan?
And the student loans?
Do you have an emergency fund?
Do you contribute to a 401k or for teachers I think it is called 403b?
Do you have an IRA?
How much of a house would you want to buy?
Do you plan on having kids soon?
I wouldn't look into a financial adviser because your are likely to just follow their advice blindly. The best thing you can do is educate yourself about money. You may want to watch The Suze Orman Show , she is all about becoming powerful by taking charge of our financial lives. This would apply also to your wife.
You may want to watch The Suze Orman Show , she is all about becoming powerful by taking charge of our financial lives. This would apply also to your wife.
Good luck.
I agree on watching Suze Orman, I have been a fan for many years and I am 25 now. She really puts the financial world into simple words. Check out her site and books too.
Your rent is within your means. What amounts are your monthly payments on your debts?
Suze Orman is the best way to insure you WON'T retire--her advice is not good, sorry.
Do you need a financial adviser, maybe. How well do you understand investments, how much time do you have to devote to learning about them and what they can do for you, the different tax implications of different investments, etc. Just make sure the person you hire is actually an "adviser" and not just someone that hangs that tag after their name.
- Is our money in the right spots? We have no investments, savings bonds, etc.
- Should we attack my debt right away or let it accumulate?
- It's a great time to buy a house; should we take the plunge?
If you have money but no 'investments' then your money is not in the right spot.
Why would you let your debt accumulate? As long as you feel your job is secure pay it off. I guarantee that the interest you pay on your loans is higher then the 1% you will gain from a savings account.
Houses have lost value recently and interest rates are low, so in that sense it is a good time to buy. However if you do not have a good down payment, have high interest debt, or other negative variables then you shouldnt.
Hello all, please help. I consider myself a fiscally responsible citizen who spends money wisely most of the time. I am 24 years old, recently married, no kids, and both me and my wife work as teachers in a small town in Illinois.
congrats on the marriage!
We currently rent a home at about $450/month minus utilities; we have one car loan at $18K, grad school student loans at $11K, and together we make around $70,000/year. We recently received an inheritance check worth $8,000 and deposited it in savings.
However, I can't help but wonder...
- Is our money in the right spots? We have no investments, savings bonds, etc.
i would suggest starting with 2 savings accounts. one savings to "piggy-back" your checking, and one savings in a Money Market Account (MMA)...if you don't know what those are, google it, and educate yourself. Your MMA would be your Emergency Fund. Start with $1000.00 there, and start attacking your debt right away...once the debt is taken care of, your goal should be to have 6-12 months of living expenses in that MMA.
- Should we attack my debt right away or let it accumulate?
don't let it accumulate! see above.
- It's a great time to buy a house; should we take the plunge?
absolutely not, though it's much easier said than done...try saving at the very least 15-20% of however much you figure you'll spend on a new home.
I'm feeling somewhat overwhelmed by everything; we have money but I'm just not quite sure where exactly the money would be best placed to secure our financial future. So what do you think? Should I look into a financial advisor or planner? Or is there an easier solution for our situation?
Thanks!!
welcome to my world...i'm crazy about money, always stressing it...has something to do with my parents always stressing the importance of saving money.
i would recommend you look into Dave Ramsey's program...Financial Peace University. they hold classes all over the place, and it would be great for you and your wife to "get on the same page".
There's a great book out there with a goofy title called "The Wealthy Barber". It's a great easy to understand book for beginning investors written by David Chilton. Covers a lot of the basics.
A financial advisor will want to set you up in stuff that you aren't ready for yet. And charge you handsomely for it.
And the next book you should read is Jane Byrant Quinn.... Making the Most of Your Money. Even if you get an outdated version so the numbers are way low, the advice is VERY sound.
Be wary of message boards like this -- you'll find the gamut of advice, most of which will be totally wrong for you. Good luck!
My advice to you would be, either discuss your options with a fee only financial planner, which will cost you about $250. (you need to stay away from "financial planners" who sell stuff because their motives may not be pure), or, put your money in a mutual fund which is geared to your stage of life and your goals. We found that Vanguard funds are very low cost in fees and have a fund for every goal.
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