Hi there. I have recently inherrited $80,000 after the death of a family member. While this money is exciting, I am a little terrified because I am financially clueless. I don't even have a credit card, just a debit card, and haven't looked into credit cards because they confuse me (lol).
So here is my current financial situation:
-
I have a job that pays about $49,000 after taxes. This might go down some in the next year or so if I switch jobs, which I am considering.
-
I have ~$20,600 in student loan debt--have not started paying it back yet
-
I have about $6,000 in my savings account
-
I would like to give ~$10,000 of my inheritance to my grandma (it was her son who died, and she paid his premiums). I also would like to be very generous this Christmas (maybe buy my parents a vacation, get my grandpa hearing aids). Last, I would like to donate a few thousand dollars to a cause that my deceased uncle would have supported. So I am guessing after I give these gifts/donations, my inheritance will be at about $60,000
So here are my questions:
-
Should I just pay off all my debt? Thats what my dad says to do, and is super appealing to me, but I've heard that is not always the smartest move (again, need someone to ELI5 that for me).
-
How should I be investing this money? I know people put stuff in stocks? Retirement?? (I do not have a 401k but will start having one in about a month).
-
Should I get a credit card? (lol)
I am so grateful for any advice. Thank you!!
Submitted October 20, 2017 at 09:06AM by ilove2sleep http://ift.tt/2hRckS5
