I (26m) was raised by my single mother, with three other siblings. Money was always tight and I didn’t learn about finances until I started teaching myself the last year or two. That being said my credit is rough, in the mid 600s. My girlfriend and I are interested in beginning the home buying process. Her father and both of us agree we need to be married or at least engaged, and he will only co sign if we are married. I plan to start building an emergency fund and also propose soon. We currently have a great deal on rent (we split it) but may be forced out of the arrangement soon. I’ve worked at a restaurant since failing out of college 6 years ago. I make far above minimum wage (40-50 hours a week) and have paid insurance but I’m definitely not living up to my potential and don’t want to be stuck there when I’m 50. Plus the desire to start a family really has me inspired.
Expenses Rent $260 (my half) Electric ~$75 Gas ~ $50 Progressive $70 Massage $60 Amazon Prime $13 Medical Bills $150 Student Loan $70 (about $5k total) Groceries $100 Cigs $200 a month! (I know, I need to quit) ~$1050
Income 40 hours/week ~ $1600/mo (net) payroll + ~ $1000/mo in tips $2600/mo
50 hours/week ~ $2200/mo (net) payroll + ~ $1400/mo in tips $3600/mo
Car: Paid off Grandfathered in family cellphone plan for time being IRA: $2K Checking: $2k Ally Savings: Just opened, plan to build emergency fund in there Credit Cards: 1 secured card with $300 limit, carries no balance. 1 unsecured card with $500 limit and 1.5% cash back, also carries no balance Other debt: ~$2k medical bills in collections from 5+ years ago (just paid off one account in collections but was instructed by the bank to only pay the others if they’ll accept a settlement)
My questions are: 1. How much of my income should I be contributing to my IRA at this point? 2. Would it be unwise to get an FHA loan or USDA Rural Development loan (0 down) for a house around $130k? Any advice on the right path here would be appreciated. 3. Would it be better to go accrue more debt going back to school while trying to maintain a full time work schedule or try and find a better paying job with no degree? Im not drawn into a particular field if that helps.
I appreciate you taking the time to read this and i would really appreciate any feedback or advice you might have based off the info provided. Looking to improve and be a contributing member of society. I’ve always done well when following a plan so looking to establish a nice “routine”
Sorry about format, on mobile Also posted to r/personalfinance
Submitted May 11, 2019 at 06:20PM by lipzits http://bit.ly/2LDjwUc
