Dave Says Your Income Is The Key & Find A Good Money Market Account

I have $100,000 of student loan debt. Since the amount is so large, is there a special place in your Baby Steps plan for it?

Jules

Dear Jules,

I hope you have a nice, large income with which to fight that big pile of student loan debt. But I’ve seen worse cases. I’ve spoken to people who went into debt $200,000 for a 4-year degree in a career where they will make $45,000. Yes, that kind of thinking and behavior is out there, and it’s ridiculous.

The fact that it’s a large amount of student loan debt doesn’t change anything. In Baby Step 2, you’ll pay off your debts except for the mortgage. Don’t let the student loan debt linger for years. It’s time to be focused and determined about taking control of your finances. This means sticking to a monthly budget that is strictly based on the basics. Start saving every penny you can to pay off your student loans. Your income is the most important tool for building wealth, Jules. Dave

Finding a good money market account

Dear Dave.

My spouse and I have no debt and are saving for our first home. We have $140,000 in our savings and would like to purchase a house with cash at the right time. Where should we put our money, so it will work for us while we save more?

Andy

Dear Andy,

If I were in your shoes, and maybe looking at a window of three or four years, I’d just park the cash in a good money market account. Your money won’t grow much, but it will be safe. You’re just looking for a safe place to store your money for a while. In your case, the problem would be that the market is volatile. You and your partner are both in a good financial position right now. Imagine how wonderful it will be to be debt-free and own a home in just a few short years with the path you are on.

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