Hello!
I’ve just turned 24 and have just about $28000 saved up. Especially with everything going on in the world, I’ve been trying to take a deeper look at what I could be doing to better set myself up for the future. I’ve done a bit of research, but truthfully I’m a little unsure on what the best options would be in my situation.
Right now I make $22/hr. I’m contributing up to what my employer matches into a 401k, which is 6%. I’ve also recently opened up a Roth IRA to contribute a little extra to my retirement but only put a small amount in it so far, about $200.
I have $600 in expenses I routinely pay monthly. I’m fortunate enough to be living with my parents and not having to pay rent, and plan to continue living with them for the next couple years at the least god forbid anything crazy happens.
Half of that $600 comes from my car payment. I still owe $14700 on a 2021 Honda civic sport at a 7.79% interest rate. Might have been a little more advisable to get a cheaper beater car, but I do work from home and figure this car will (hopefully) last me a long time. Plus I really do like it.
I also owe about $4000 in student loans at a 2.5% interest rate.
My question is what my next step(s) should be and what I could/should do with my savings. Open up a HYSA? How much to put in it? Should I try to pay off my car ASAP given my higher interest rate? I could just pay it off now but it would cut my savings in half which sounds scary. I could max my Roth IRA for 2024 while there’s still time to contribute to it? Just not quite sure what would be advisable. Any help or advice is much appreciated, thank you!
