Just starting out...any advice?

Question

Hi,

My wife and I are just starting down the career path and would appreciate a little feedback from the Yahoo crowd. I often read about saving and planning, but wonder if there's anything I'm missing. Here's our situation:

I am just finishing up with graduate school and have accepted a job offer from a great company (dream job, full benefits, retirement, substantial salary, etc.). My wife and I have a relatively small debt load (around $10,000 in student loans). We have also managed to save an emergency fund large enough to live off for 6 months. We'll be moving to a new city and plan to rent (cheaply) while building our assets. Does anyone have any general tips?

Please Comment!

Thanks,

Cretaceous1

Answer 1

it sounds like you're well on your way to financial success! 10k is no sweat, assuming it's at a resonable interest rate. Are you going to be planning on a family soon? or a home purchase soon? I also must ask, why the HUGE emergency fund? great you're saving, but are these funds working for you at least in a high yield savings account of some kind... I am no expert but six months wages for a couple...what is that figure like 20k? with funds like that I would say pay that school loan off and look to buy a decent home that will allow you to live comfy and have plenty of extra cash flow to dump into assets, not to say no emergency fund...but two to three months seems like a better plan of action (less liabilities the better...but if family possibilities...a home would be best)-just make sure you're not using all that extra income for the newest bestest furniture and decor. also you didn't mention personal finance as for credit spending... though you have all this income and wealth accumulated are you still using that credit card every once in a while to ensure your credit scores continue to build along with your account balance? minor things compared to general situations listed here, but those are potential areas of betterment..but Good Job on being responsible financially!

Answer 2

First of all, congrats on a new job offer. But the best advice I'd start off with is to be careful.While you have a good job, this economy may affect it somehow (and if it doesn't assume the worst anyway).

So, since you have money saved up, the next step would definitely be to pay off her debt (and whatever debts you have). There's nothing more to say, save, pay off, and save. Don't invest or risk anything unless you're already free from significant debts. (Or in other words, no new debts until old debts are gone)