I need a financial plan to put me where I want to be. I'm not very good with handling money. I need to move out asap.I don't really have any savings either. Should I pay off my debt then get a apartment/ house? Should I save up for a small house? Should I take out a loan and get a house? I just want to do the smartest thing. That will get me financially stable as soon as possible.
You're right, you don't know about finances so you're planning already on making a lot of mistakes. A guy that lives at home is never a marriage possibility so your gf is trying to talk you into moving into a home which at this point in time whether it be bought or leased would be a big mistake. Girlfriends take up your money (because you want to show your generocity to keep them) so that's your first mistake. If you want to save money you can't do it while having a girlfriend around. Put her aside for now. If she doesn't understand then, well, you can find someone later on who does.
The economy is still up in the air, so hang onto your job and save your money as $36,000 a year isn't a lot of money when the average is over $55,000 for a guy, plus you live at home and have SL debt. At 22 years of age, did you get 4 years of college? And is your student loan in default? And how much are you paying per month on your student loans? See when you work and live at home you're supposed to be paying rent to your parents, however they were being good to you and letting you not pay rent so that you could pay your student loans but instead you were using that rent money on your girlfriend and taking advantage of your parents. Those are mistakes.
So let's say you decided to get an "apartment". A one bedroom would be a good choice, on the second floor and parking side of the building and that way you'd get it a little cheaper. Let's say you're paying $200 on your student loan monthly, then rent about $700 a month, electric maybe $50 a month, some places you have to pay your own water, what about your yearly car tags (and do you have car payments), surely you pay car insurance, and Obamacare is a requirement (health insurance), car maintenance, clothing, washing clothes weekly, food (will you be expected to pay your girlfriend's food or is she employed and with what kind of income, like can you split the bills?), you'd need a credit card, and to get into an apartment you "both" would have to apply and there's separate application fees, and then you'd be expected to have about $2,000 or so upfront to get into that apartment. You'd need a bank account and a credit card, and need to pay deposit on the electric. Hopefully "she" won't want to get a pet, or that she doesn't have one, and she would need to be on the lease as well. Remember that rent goes up yearly, that you may need apartment insurance, and I didn't include furniture, cable, internet, etc.
If you can, pay off your $5,000 student loan debt before you move ahead.
What bring people down real quick is a trip to the emergency room, an accident, or just maintenance healthcare needed (dental, glasses, etc.).
Does your girl have good credit, and both of you have a clean criminal record and steady work on the job?
I wish you told us why you feel the need to move out. Do you have trouble getting along with your parents? A good solution would be for you to learn to manage money by watching your parents do the family's finances, then trying it yourself (before running your work past them).
At 22, you lack experience, so buying a house right now would be a bad idea, even if you could afford it. If you must move out, rent an apartment so you can make (and learn from) your mistakes in a lower-risk environment.
If your student loan has a higher interest rate than whatever you're getting from investing/saving it, pay that off first.
You can't buy a house. You can't afford it and you wouldn't qualify anyways.
Figure out how much it would cost to move out on your own. That includes rent, food, utilities and all the bills your parents are currently paying. Put THAT much toward your student loans each month. You should be able to knock out the student loans in three months max.
Then you put that much into savings each month. When you have a savings account of six months' income, then you start contributing to your retirement plan. If you don't have a retirement plan at work, you start a Roth IRA on your own.
After you have all those things done, THEN you can move out with the cash-flow you have left over.
When you do your monthly budget, it's not just rent, groceries and utilities. It's also things like medical insurance, car repairs, retirement plan, dental work, contacts/eye glasses, gifts (birthday, holiday, wedding, etc.), clothing, unexpected travel for things like funerals, etc.
Make sure you keep up on the six months of income emergency fund. That is how you pay for unexpected things like a job loss, extended illness or injury (you could break your leg skiing), etc.
Wait a few years(2yrs) then get a mortgage loan At this stage of your life, your most valuable asset isn't youthful vigor or a full head of hair. It's time. Because you're decades from retirement, contributions to a 401(k) or other retirement plan will have years to compound and grow. Even a modest contribution now will pack a much greater wallop than a significantly larger contribution when you're in your forties and fifties.
If you start socking away $200 a month in a retirement account from the moment you land your first full-time job at age 22, within ten years you'll have a stash of more than $37,000, assuming your investments grow 8% a year. In 20 years, you'll have more than $122,000, and by the time you reach age 67, your nest egg will be worth $1.2 million
Vanguard Roth IRA
Vanguard Total Stock Market Index
An employer retirement plan(never leave free money on the table)
Education, save and live within your means
Best of luck
Yes, pay off student debt FIRST! Then when you are ready you can buy or rent a home! The more money you owe, the higher your interest rates will be on any potential loans! Less debt means a better FICO score! Then I suggest that you buy a home and either pay for it upfront (the best option but not likely possible for you) or finance it! If you do finance it, make as big a down payment as possible and for the shortest amount of time you can! Also, shop around for the best inter estates! Be sure to read ALL the fine print before you sign anything! Good luck!
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First--do not move out of home. pay off your student debt, then save up 3-6 months living expenses as an emergency fund (not your living at home expenses but your living alone expenses----3-6 mortage payments, food for that time and expenses for that time). Now with the loan gone and a good emergency fund established go to a realtor and see what is available in your area for homes to buy that you can afford. Then you start saving the downpayment. All the while you live at home. If you move into an apartment now all the above will suck up your take home income and leave little room for eliminating debt etc.
Rent for a year, pay off your debt first. Look around on realtor.com for houses and start investigating the options of what is out there. Move out now, do not pay more than 1100 a month cash in rent, save 150 every pay day cash toward your debt payment
Are you familiar with the Khana Academy? It's a "dude" (it was a dude, he started it in this little apartment in SF) who started creating little videos on academic things. He did it in 15minute segments and tried to make it understandable for everyone. It's very popular now and he has gotten funding from big companies like Microsoft.
The Khana Academy and Bank of America have teamed up to create some personal finance programs. That's where you should start:
http://about.bankofamerica.com/en-us/lif...
If parents offered, then by all means stay with them till your debts are paid off.
You can probably afford a condo but remember they all have HOA fees.
maybe you could try a rent-to-buy deal. Or just rent an apt.
