I will try to be as brief as possible in describing my situation, and hopefully you can prescribe some meaningful counsel.
Personal situation:
I’m 22 and in good shape
Regrettably I live with my folks, fortunately at little measurable expense other than my pride.
Work in the IT industry (Security Admin) mainly with active directory, have a bachelor’s degree in graphic design
Financial situation:
Income: I make a little more than 40k
Side income: I flip antiques and collectibles. I have averaged $750 profit or 18% return over the last 30 days. I enjoy this, but I am considering starting another side business; either a handyman service, computer repair, or graphic design service. Whichever is the most profitable, as I enjoy all three. Thinking about $35/hour 2 hour minimum, using word of mouth and church as advertising.
Debt: The only debt I have is 17k in student loans at 4%
Expenses: Pretty limited to just car insurance, groceries, gym fee, gas. I am working to make my own reductions here.
Savings: I have about $6000 saved up in cash or soon to be sold flips.
Retirement: I have about $600 to rollover into a retirement account. My employer does not match percentage, but gives profit sharing once per year. 5 years to be 100% vested in what they give you, but I don’t want to live here that long.
Here is where I get confused on how to proceed, as this is my five year plan:
1. Buy a house to fix up, both because I want to move out on my own and to build equity/income from roommate and housing market up-tick. (Low interest rates!) I’m prequalified for 100k for a house
2. Though I’ve only worked my current job for 3 months, I am planning on moving to Colorado or the Midwest. The rub, I need to stay long enough for my job experience to carry me to the next rung on the job ladder.
Overall – What should I be doing to save money fast, and where should I be putting it? If I want to retire at 40 why should my money go to a Roth or 401k – I know it shields the money from taxes, but what’s the point if you can’t withdraw it easily (without cost) before you are of conventional retirement age?
Buy a house, or tough it out?
Invest money or use it towards my side business/flips?
Why should I work to pay off 17k at 4%, when I could use the money to get 10% + either through the vanguard fund that MMM mentions, or use the money towards my flips? Flips are more volatile, but tax free :grin: