Now that I finally have a little income I need to figure out what to do with it. There are several things I would like to do with my money but I can’t do them all at once. The things I would like to do are:
- pay off my credit card (approx. $1600 balance)
- establish $1000 emergency fund
- open a Roth IRA
- get health insurance
Getting health insurance should probably be my first priority, after that it is less clear. My credit card is at 0% interest but that will end in August. The interest rate will then be 11.74%. I know it would be smarter financially to pay off the card then keep $1000 in a savings account earning 5% but I like the idea of having a little cushion in the bank. I’ve already delayed opening a Roth IRA for too long. I am almost 40 and have no retirement savings. That is why I want to get the IRA started soon. So far I haven’t done anything because I can’t make up my mind. Do you have any suggestions?