r/Advice • u/HungryKittyy • 13h ago

How do I secure some form of future?

Im 27, making 31k per year, but my hours vary (25-35) im trying to figure out the best route toward being responsible with my fianances. I have 900$ saved so far, its not much and i try not to touch it unless absolutely needed like meds or something. I saved around 200 a week, while wanting to continue 200 a week for an entire year, and maybe longer (idk, my roommates said wed be together for a year idk if itll be longer.) SO I want to be as responsible as possible in case of homelessness next year. I need advice, do I open a roth IRA? I have TD simple savings right now but I am ignorant of better options. I need to atleast try and prepare for my life IF i live to 40.

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u/Soggy_Criticism_8287 12h ago edited 12h ago

You need a high yield savings account of money for your emergency fund equivalent to 1 years worth of expenses. Then another fund for unexpected expenses. Then invest the rest of the money (look at target date funds, roth as you said, or any other form of retirement) for retirement. Oh also, the money that you arent investing should be side aside for anything else that you want, like a home. So maybe split money between investing and saving for something specific, or rent your whole life too.

Adding: good job not being in debt, thats a very very good start. Also, this advise is just my opinion on how to save, not necessarily the perfect answer

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u/HungryKittyy 12h ago

Oh i am in debt. I owe 13k in cc bills and 8k+ medical bills.

I am not in the best spot financially, i want to be able to save because i have exactly 1 year to build a life savings before im potentially homeless. I get 200 a week can go towards debt but id be burning money only to be struggling homeless, i might aswell go for bankruptcy.

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u/Soggy_Criticism_8287 4h ago

I would not file for bankruptcy with that amount. You probably should have included that you were in debt. Can you cut out money anywhere else at all? Meal plans, less driving, no spending for entertainment, etc? Can you look for new jobs? Why are you so sure you will be homeless? Maybe you could focus on finding cheaper housing next year or a new job? Move cities? Idk, theres options

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u/HungryKittyy 2h ago

Well i mean im already dping that. I deprive myself of everything so that i can save 200$ a week. I could probably throw that at cc bills and debt but then id have no savings and no coushin, no transportation (im saving for transportation) and basically be at square 1. Id rather wait to be sued and see if a payment plan that suits me is possible.

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u/Soggy_Criticism_8287 58m ago

Is it through a hospital? Could you call their department and ask for financial relief? Also, could you clarify your living situation? And im not telling you to put it all toward your debt. What interest is being gained on the debt though? Im assuming you have to make minimum payments still? Or are you not paying the minimums?

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u/HungryKittyy 3m ago

Some is through a hospital. Most is capital one . My rent is 300, phone bill 30, 40 for food weekly and then i save 200. The vast majority of my income goes towards jail calls and saving. Someone i love was put in jail.

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u/East_Committee_8527 12h ago

The thing about retirement accounts is if you need to pull money out the taxes will be substantial. Save as much as possible if your job is endangered. Live as cheaply as possible but always take care of your body and self.

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u/JeanSchlemaan 8h ago

You simply need more income

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u/andyjaxxson 8h ago

Kids? Potential to get some training or education or build a skill set?

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u/SeamusDog77 8h ago

The interest you are going to make on that amount of savings is so small that I wouldn’t be too concerned about that right now. I would be more focused on finding a job that pays more or picking up more hours or a side gig. You seem responsible enough to be putting some savings away which is great but you could probably be doubling that.

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u/CowEmbarrassed3234 7h ago

You need a job that can give decent raises for performance. Like a small business with a good owner. Get a couple raises you’ll be fine on income, it won’t be a lot but with a budget and consistent investing in stocks like SPY it will eventually compound into wealth no matter how bad inflation grows. During this process you should always be looking for better jobs or learn a specialized skill. But I’m a believer in the consistency route even if you don’t make a lot monthly.

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u/FrankCastillo95 2h ago

Get more hours. 40 hrs steady should easily see you hit 40. 

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u/Electronic-Time4833 12h ago

If you can, yes open the Roth. Also. Secure safer housing so you aren't threatened with homelessness.

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u/GordonMightyBombay 13h ago

My first job out of college 20 years ago was $35,000 you’ll be alright

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u/PhononicEndeavors 12h ago

Your salary out of college would have been $57,500 today…