[Jessica]

Apologies in advance for my mini rant, but I need advice‼️

I’m getting a pretty decent tax return, and am not entirely sure what to do with the money.

I’m currently living rent free with my parents – a financially incredible thing. However, the living environment is borderline toxic, mentally and emotionally speaking.

My first instinct is to put it all toward my student loans (coincidentally doing both the snowball and the avalanche method, as my smallest debt has the highest interest rate, and so forth). The minimum payment on my loans collectively is a rent payment in itself.

A second thought is saving it to move out of my parents house – but living costs are so dang expensive (a studio apartment in my area is min $1500).

Additionally, I am potentially losing my FT job by the end of April due to lack of work… and finding a new job, which I’ve been trying to do since mid-December, has been unnecessarily difficult. I do own my own bookkeeping business (though I currently have no clients) and thought about putting at lease a couple hundred dollars into my business checking account in order to buy business cards, etc. to try to get that up and running.

[Theresa]

With the looming job loss I recommend storm mode (save everything possoble) only exception would be get those business cards and get out there bookkeeping. Talk to everybody you know and ask for connections.

[Moore]

Since there is potential for job loss I would suggest storm mode and then reassess once the current job or new job is solidified.

[Steve]

If your single and not a parent you should be working so many jobs you cant keep track. Get that work experience and work hard. Good things will come of it. People will offer you good jobs or you get experience to find higher paying jobs. For now stay at the folks but work so much you cant have problems with them because you are never around. Build a little nest egg and move.

[Drew]

If you have a known catastrophic event coming (loss of FT job) this and having a baby are 2 of the only exceptions Dave has for pausing baby steps. I would keep all the cash as an emergency fund and stay rent free until you have confirmation your job is not ending or until you have a new job. Everything else can happen later. Don’t turn a difficult time into a disaster.

[Lauren]

Don’t move out of your parents house with a job loss coming. An eviction will cause you problems for years both renting AND buying. Keep $1000 for savings, the rest goes to debt. I have the feeling you are Dave-ish and it’s time to be by-the-book 100% in it. Have you done FPU or read Total Money Makeover yet? The urge to get out of your parents’ house is good motivation to crush your financial goals.

[Julie]

Stay where you are for now. Wait for job to stabilize before moving. Save everything for now. Work every possible job you can find. Multiple side hustles, plus grow your business. The small business will be a great, lucrative pay and the expenses will reduce taxes, too.

As well, change your tax withholdings to bring home more of your paychecks monthly instead of getting a large refund annually. This will help you with your monthly payments.

[Jed]

Your situation is clouding your options. I’m sure there are shared places much cheaper than $1,500 a month. I’d say your priorities are to get out on your own. Then, focus on employment. Then student loans. You can put them temporarily on hardship deferral. One thing at a time. You got this!

[Karen]

Without another job your options are limited . Would it give you less stress and more focus if you paid off all your debt? Your going to have to have proof of income to rent. The best way to remove yourself from toxic is get out there and work(even if it’s 3 part time jobs). Just use the house as a place to rest your head. Without debt you can put all that income away to find something by end of this year .

[Author]

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