She also says that in order to pay off the debt more quickly, the woman shouldn't put money toward investments outside of her retirement savings.
Linda, a 30-something Bay Area resident, is more than $100,000 in debt from student loans, she told certified financial planner Jill Schlesinger onLinda earns $98,000 a year and recently moved back in with family to save money on rent, but she's not sure what to do with the extra cash. She wants to"I would like to be financially secure and not have to worry about money in the future, and in my 30s I'm really just beginning to focus on getting to that point," Linda said.
First off, Schlesinger said, prioritize having kids:"That biological clock, you can't wait 10 years, you'll be in your mid-40s." As for becoming a homeowner, Schlesinger doesn't think Linda is financially ready until she makes a dent in her $104,000 student loan balance. "You are not buying a house right now — it will feel like you are drowning," Schlesinger said."To me, it's too risky for you to take on this thing called a mortgage.". A 10% down payment on a median-priced home would yield a monthly mortgage payment between $3,300 and $3,700, according to SmartAsset's mortgage rates calculator.
By renting, Schlesinger said,"You're not throwing money out the window, you're buying flexibility, you're buying opportunity, that's how you have to think about it."Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you.