INFO:
- New job's starting salary: $75k (More like $52k after taxes), annual bonus & potential for increase
- Additional Income: ~$5,000 / year
- Location: Maryland, USA
- Current monthly rent: $550/month
- Utilities: ~$130/month
- Food/Dining: ~$250/month
- Insurances: $190/month
- Debt: $35,000 student loans, 6k other debt
I'm a little late to the game as far as getting a hang of finances. Up until now, I've lived off of waitressing tips and video gigs. It worked but it was basically treading water while larger debts grew under the surface. I deduct part of my rent for my home office and all business expenses.
GOALS:
- Invest as much as I can to earn passive income
- Pay off immediate debt
- Begin saving/earning for retirement/house/etc
- Afford a bigger place
- Network with the many successful people this job puts me in contact with
- Grow my wealth
- Retire at reasonable (if not early) age and focus on my personal passions/business ventures
- 10-15 years down the line: no more college debt? (Not my top priority)
- 20 years: help my parents out
QUESTIONS (Explain like I'm 5, my brain has a hard time absorbing this kind of information which is why I'm here after many a googling):
- How realistic are my goals?
- What should I be working towards (career-wise, budgeting-wise) to achieve my goals?
- Even though I work for an investment research company, I really don't know much about investing (I do media content). Should I bother with ETF's because they're hands-off? Or skip this step because of my access to awesome research and invest in individual stocks? Or are ETF's still the more safe, cost effective way to move forward?
- On what platform should I be investing? I have a Robinhood account, but the interest rate is low. What earns the highest annual interest? What's the difference between a high interest rate or an account that pays dividends and is one better?
- What percent of my income should I pay into my 401k and should I bother with a Roth IRA if I already have a 401k?
I don't want to squander this opportunity to struggle less than I was before. In fact, I'd love to get comfortable or even wealthy if I can. I know this job could be a long term thing but life is always uncertain. I know I'm a bit naive about this whole process, and learning about it makes my brain melt, but I really want to try and get smart with my money.
Thanks in advance!
Submitted January 26, 2021 at 11:31PM by lrosec https://ift.tt/3a5Tge1
