Where to put money

Question

Hi!

I have 6 months savings, I have never owned a home, and I have only about $14k in a HYSA (not including my IRA). My current career (RN), while a good job/salary for now, does not have a great projected salary increase over time, unless you potentially spend 20-30K on grad school.

Should I continue to save that money I'd spend on grad school towards a first time home? I know it's a great investment, especially if I try and house hack. Or should I bite the bullet and do grad school for 2-3 years to make 40-50K more a year? I'm able to work while I attend school, I am currently completely debt free, but owning a house is a goal of mine as well.

Would love any input! I am complete newbie at markets, investing, and using my money wisely so I am trying to educated myself/research as much as possible! I have a financial advisor, but ultimately where I put my money is up to me.

Bryce Jamison · Answer

You're doing great if you have no debt and a 6 month emergency fund! Awesome job!

If you have a 401(k) option my next step would be to ensure you're putting in enough to get the company match. If you don't want to go the grad school route can you pick up extra shifts to bring in more income? I've also heard of nurses doing 1 off phlebotomy gigs, or work on military bases and community healthcare outreach programs to make more money. Could you be a travel nurse and bring in 5-10K a week? If you do want to go to grad school will your current employer cover any of it, or are there scholarships / programs that will cover some of the cost?

If I were you I'd buy a 3 or 4 bedroom house and rent out the bedrooms I'm not using, especially given owning a home is a goal of yours. In your position you could furnish the extra rooms to rent out to travel nurses and make bank! With today's interest rates and depending how much you put down your PITI will most likely be more than it would cost you to rent, but as time goes on this will swing in your favor, and you can negate this by house hacking.

Li Xu · Answer

@Brittany B.

After 2 masters and 8 houses, here is what I learned:

- always invest in yourself before you invest in anything

- they both a lot work, but you get what you put in, could be a lot fun too, depends on the companies you choose

- there are more ways to make $40-50k+ a year than graduate school, but graduate school eventually gave me way more than $40-50k more a year

- the more selective the school is, the more you learn. Because you will probably learn more from fellow students than the professors on the stage. If you decide to go to school, don't settle, get in one truly deserve your time.

- if you decide to buy a house first, don't overthink it, it will not be the last home you buy, if it's 8 out of 10, it's good enough, and you will learn so much , the best one will only be better.

- I enjoyed both of my graduate schools, but once I hit certain age, you can't pay me to go back to any school, I'm pretty sure I will be buying homes in my 70s.

Graduate school gave me wings and a home gave me roots. Whichever you choose to do, or do first, I hope you enjoy it! 😊

Min Zhang · Answer

Hello Brittany! It is definitely a good thing to invest in real estate. I suggest Tpreferto start in the midwest, because the entry point is much lower and cash flows the best. As long as you develop your Core 4 like David Green’s mentioned in his long-distance investing strategy (realtor, contractor, property manager, and lender), you should be able to invest anywhere with confidence. I buy in Columbus, Ohio. Columbus has experienced so much growth for the past few years, partly due to the influx of tech giants like Intel ($20 billion), Meta, Amazon, and Google building warehouses and data centers in the area, which has contributed to an increase in property prices and more people moving into the city for job opportunities. I also invest in Cleveland and Cincinnati. Let me know how can I help!

V.G Jason · Answer

Honestly, you're way ahead of the curve if that's where you sit.

I would continue to save up, keep money in your HYSA/tbills and when you got an appropriate amount for a downpayment-- buy your first house. Between now and then I hope you're maxing your Roth and 401k. Continue to not rack up any consumer(incl car) notes. You're in the minute of minute % of people with no debt, don't overlook that.

Carlos Ptriawan · Answer

Once eligible, every adult above 19 should have mortgage that's my personal opinion. Mortgage is not a debt but it is a  investment tools so one is always not using the money for something that's not productive. Mortgage is not a debt but a gift from goverment where you can secure an appreciating asset with the money that's always on dis-inflation mode, so you always "win".My mortgage if I still use the same note was like $1500 ; currently it's equivalent of $10,000 with appreciation,inflation,today's rate and so on.IF your area has reduced inventory but house to income ratio is increasing, buy now even with 20% rate LOL (just househack to cover yourself).This market doesn't care if we're nurse or Phd but it would reward those who strategically investing.

Carlos Ptriawan · Answer

always house first .............. any school you can do even when you are 60 years old, but the house inflation was way way running too fast these days.

Brittany B. · Answer

I agree! Thanks for your input! I think ultimately grad school will be more about job satisfaction. For now while I can keep up with the nursing bedside hustle, I can focus on real estate and continue to evaluate school.

Jaron Walling · Answer

@Brittany B. You're going to get different opinions on where to spend your money, but you came to a REI website seeking advice. The majority of us in here would prioritize buying your first property > going into student loan debt. Do you have the ability, motivation, or drive to work OT? If you're willing to work more hours you should be able make a ton of money, no?

I would not value a masters degree over being debt free and buying a home. RE is only getting more expensive especially if interest rates start to dip. There's too much buyer demand on the sidelines. If you're financially stable don't hang out on the sidelines forever.

Carlos Ptriawan · Answer

Currently, the main purpose of why I am having job :1. To get health insurance2. To be able to get mortgage LOL3. To make me busyI have so many friends that has good DTI when home price was in 300k but they always decide wanna do this before, do that first, vacation first. For 10 years they don't buy house until recently when the home price is 1.1mil by average.They maybe more smarter than me but since I accumulated house from beginning I could think of retiring. Just saying, housing is so crucial and they dont wait for our opinion to get bid LOL

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