Hey guys, as the title reads, I'm 18 years old and I make right around $100k. My monthly earnings range anywhere from $6,000 to $11,000. I spend about $200 a month on gas/restaurants, $50/month for my phone, and that is the extent of my spending other than my car insurance ($500) due every 6 months, soon to be upped to $1,000 every 6 months because I'm getting my own coverage rather than being with my parents. I'm also maxing out my own ROTH IRA I have setup with American Funds. Company doesn't match 401k matching until our 1 year in. I have two cars, one very reliable, and the other is something I can get around in the winter in because our winters suck sometimes. I still live with my parents and that's all of my bills. (Doing the math for you guys here, that's $11,000/yr for all my expenses). Where should I be putting all the extra money I am making. I plan on buying my own home (200k-300k), either in cash or at least a 50% down-payment. I've came up with a couple of options, and I'm open to hear your options as well, please feel free to critique them.
Option 1:
Allocate all funds into a high-yield savings account (Such as Ally, already have an account open there), and keep throwing in a good chunk of my paycheck into that account. Be ready to pull out ~$100k+ in 2-3 years, put a down-payment on a house. If I don't find anything I like, keep adding funds to it until I find the house I want, and I'll potentially have enough funds to purchase a house cash.
Option 2:
I've been thinking in the back of my head that I might want to move out of the state, to Texas. I'm unsure about this for one main reason; money. The yard I work at for the railroad pays very, very well. One of the highest paying yards for the railroad I work for. I can always go to the road to make even more money, if my seniority allows me to do so. (Road jobs are the bottom of the barrel). I'm unsure that I would be able to make as much money as I am right now, working the same job, at a different yard. I'd have to look into this one for sure, and rent for a year or so to understand the area(s) I am considering. It's not that I hate where I am living now, it's just I think I'd appreciate Texas a little more.
Option 3:
Allocate all funds into a medium-to-high-risk mutual fund through American Funds (I have an account open with them for my ROTH IRA). I could see some pretty decent growth through that, although I don't really feel this would be the best option since I'm really not in a big hurry to move out... but at the same time, I also want to. Financially, I think it would be more beneficial to stay at home and keep money into either an investment account or savings account.
What do you guys think??
Thanks!
Submitted March 24, 2019 at 11:08AM by ByAstrix https://ift.tt/2HC4cEz
