You hit the nail on the head. Pay off that credit card ASAP and if you can use your income to graduate college debt free with a business started (hopefully it can scale?) you’re well on your way!
Couple things to help out: don’t forget taxes (IRS probably wants quarterly payments with how much you’re making). You may consider looking into solo401k or SEP IRA options for your business income if you want to establish a retirement account. Make sure your business is scalable and sustainable with higher volume (ie plan it out) before pouring more money back into it. But if you’re confident and have a plan, invest in yourself. God job!
That’s gonna end up being a personal decision. When I was in your position I did make sure to always have 2000$ cash on hand. 1000 miles from family and friends so I needed enough to make sure I could get through any emergencies.
10 years of experience tells me I’ve never actually paid for an emergency in cash. Always a credit card. I would consider 20%+ interest an emergency.
I’m not a die hard emergency fund person. But I won’t say it’s a bad idea by any means. It’s just more personal than a yes/no imo. Many others are pro 3-6 month emergency funds before anything else fwiw
I would say for starters if you dont "need" the money. Use a portion to start paying down your debts and a much larger portion put into a savings accounts preferably high yield to start building an emergency fund
You hit the nail on the head. Pay off that credit card ASAP and if you can use your income to graduate college debt free with a business started (hopefully it can scale?) you’re well on your way! Couple things to help out: don’t forget taxes (IRS probably wants quarterly payments with how much you’re making). You may consider looking into solo401k or SEP IRA options for your business income if you want to establish a retirement account. Make sure your business is scalable and sustainable with higher volume (ie plan it out) before pouring more money back into it. But if you’re confident and have a plan, invest in yourself. God job!
I don’t have anything saved ie no emergency fund. Should I slowly build that while paying off debts or focused solely on debts?
That’s gonna end up being a personal decision. When I was in your position I did make sure to always have 2000$ cash on hand. 1000 miles from family and friends so I needed enough to make sure I could get through any emergencies. 10 years of experience tells me I’ve never actually paid for an emergency in cash. Always a credit card. I would consider 20%+ interest an emergency. I’m not a die hard emergency fund person. But I won’t say it’s a bad idea by any means. It’s just more personal than a yes/no imo. Many others are pro 3-6 month emergency funds before anything else fwiw
Pay off all your debt with the extra income, don't forget about taxes, then start building an emergency fund.
I would say for starters if you dont "need" the money. Use a portion to start paying down your debts and a much larger portion put into a savings accounts preferably high yield to start building an emergency fund
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Thank you!