Accidentally posted in Gen. discussion

[rmiecz]

And don't know how to delete it -_-

Ok, so here's a quick rundown of my situation at the moment.

I'm 20, make 25000 a year, and I bring home 1700 a month, (bonuses usually add ~500)
I live with my girlfriend who makes the same. These are our first positions outside of minimum wage that allots us extra money each month. So we want to minimize our mistakes if possible.

Outgoing (these are split between the two of us):
Rent/utilities: 863
My bills (paid by myself only)
Cell: 100
Auto loan: 282
Auto ins: 230

Outstanding debt:
Credit card - 750
Auto (13k left, total value as of today at 13k :\ ) - Gasoline costs average 200-250 a month
Student loans: 7k - currently on a forbearance and no payments come due until I am no longer enrolled (I'm in school and this may increase based on how/if i can benefit from taking out additional loans)
My apartment lease is up in Feb 2012, at which point I plan on taking out a mortgage on a fairly cheap condominium (40k or less)

My work offers tuition reimbursement, full health/dental/vision, and I'm contributing 7% to my 401(k), 6% of which is being matched. (only up to 2400, I've had this job for 8 months)



So, with money already seemingly tight, where to begin? I've heard great things about starting up an IRA contribution when you're young, but I also am reading up on (and very interested in) real estate. I'm learning the process of landlording and was considering purchasing up a few REO condos (living in one) over time and renting out the mortgages hoping for an upturn in the market.

Only downturn is I have minimal knowledge and zero experience. Where does my road to financial intelligence begin? What are some of the most lucrative options?

[Hector]

Originally Posted by rmiecz

And don't know how to delete it -_-

Ok, so here's a quick rundown of my situation at the moment.

I'm 20, make 25000 a year, and I bring home 1700 a month, (bonuses usually add ~500)
I live with my girlfriend who makes the same. These are our first positions outside of minimum wage that allots us extra money each month. So we want to minimize our mistakes if possible.

Outgoing (these are split between the two of us):
Rent/utilities: 863
My bills (paid by myself only)
Cell: 100
Auto loan: 282
Auto ins: 230

Outstanding debt:
Credit card - 750
Auto (13k left, total value as of today at 13k :\ ) - Gasoline costs average 200-250 a month
Student loans: 7k - currently on a forbearance and no payments come due until I am no longer enrolled (I'm in school and this may increase based on how/if i can benefit from taking out additional loans)
My apartment lease is up in Feb 2012, at which point I plan on taking out a mortgage on a fairly cheap condominium (40k or less)

My work offers tuition reimbursement, full health/dental/vision, and I'm contributing 7% to my 401(k), 6% of which is being matched. (only up to 2400, I've had this job for 8 months)



So, with money already seemingly tight, where to begin? I've heard great things about starting up an IRA contribution when you're young, but I also am reading up on (and very interested in) real estate. I'm learning the process of landlording and was considering purchasing up a few REO condos (living in one) over time and renting out the mortgages hoping for an upturn in the market.

Only downturn is I have minimal knowledge and zero experience. Where does my road to financial intelligence begin? What are some of the most lucrative options?

what is the interest rate on your debts?

[krantcents]

You are young enough that if you waited a year and worked down your debt it would not hurt you. If things are tight now, why are you thinking of buying a condo? Paying off your debt will free up some money. I suggest you start putting some of it in a 401K.

[rmiecz]

0% on the card will roughly revert to 17% come september, so I will be paying off with this months bonus. The condo I'm buying if a short sale in hopes for me to build equity. Being dent free, id use the extra money each month to pay a little extra on the condo until my lease is up in my apt (or maybe move and sublease the one I'm currently in. thoughts? Suggestions?

[danieldroga]

It is better if you consult your problem with an expert and let them see the figures as well as your current situation right now. This way you can be assured that the advice you are getting is suitable on your case.

[susheel]

If you are going to study abroad, getting an insurance is a must for you. Students opting for studies abroad have many options. Mostly, the university they are going to attend already have a program to provide for the needs in relation to insurance international students might find themselves in need of, and there are several different types of insurances to consider.
The first thought most people have of course is auto insurance. Generally states require all drivers to have both a valid drives license and liability insurance. International students are no exception here. The need for insurance for a driver is obvious since drivers must prove financial responsibility before being allowed to control a potentially dangerous automobile on the taxpayer supported roads and highways. Getting into an auto crash or accident without having insurance can lead to many financial problems that no one wants to have to deal with.

[riverwed070707]

Originally Posted by rmiecz

0% on the card will roughly revert to 17% come september, so I will be paying off with this months bonus. The condo I'm buying if a short sale in hopes for me to build equity. Being dent free, id use the extra money each month to pay a little extra on the condo until my lease is up in my apt (or maybe move and sublease the one I'm currently in. thoughts? Suggestions?

If money is tight it makes zero sense for you to buy real estate. I'm guessing you don't have a down payment (which means you'd never get approved for a SS anyway) and you're setting yourself up for failure by not having adequate savings to take care of a house. There is more to buying than just getting approved for a mortgage. Saving for retirement is important, but at your age you could give yourself a really great start by getting rid of your debt first and then working about a Roth or upping your current contributions.

If your company is paying your tuition and you're making a decent salary for a college student, why do you need student loans?

First things first, put together a budget. Track your spending and make sure you're actually living within your budget. Then post here and maybe we can give you some additional feedback.

[Ima saver]

i can definately advise against buying real estate and renting it out. I tried out 3 rental houses when I was younger and it was a disaster. The renters would not pay on time and trahsed the houses. I sold all 3 of the houses for a loss. Save up your money until you have a large downpayment on a place for yourself.

[mcfroggin]

Real Estate can be lucrative if you have the money. You just have to be picky about your tenants. Until you have the funds to purchase a unit and delay for quality tenants, I would continue knocking down your debt first.