Hey everyone, I’m 21 and trying to make some smart financial decisions early, but I’m a bit stuck on what direction to take and wanted to hear what others would do in my situation.
I’m an electrician making about $1,000/week after taxes right now, and my income is expected to roughly double in about 4 years. I also have a second source of income from social media that brings in around $3,800–$4,200/month (I know this isn’t guaranteed long term, so I don’t fully rely on it).
I’ve got about $46k saved up, no debt at all, and pretty low expenses overall.
My main goal is to build wealth long term, and I’m debating between a few options:
* Buying land (possibly to build on later)
* Buying a starter home now
* Renting and investing my money while I wait
I like the idea of land because it’s cheaper and I could build later when my income is higher, but I also know it doesn’t cash flow. A house seems more “traditional” and stable, but it’s a bigger commitment right now. Investing seems smart too, but I don’t want to miss out on real estate if it keeps going up.
If you were in my position, what would you do and why? Anything I’m overlooking or should be cautious about?
Appreciate any advice 🙏
Edit: forgot to mention that I’ve maxed out my ROTH IRA for both 2025 and 2026. I have that money invested into the SPY ($14,700) and QQQM ($838)
Need Advice in my financial situation based
byu/Negative_Signal_4405 inpersonalfinance
Posted by Negative_Signal_4405
3 Comments
With your skill set, I’d definitely go for some land to build on in the future. There’s a lot of things you can do yourself to upgrade the value of a basic residence.
In addition, immediately start investing a steady amount into an S&P fund like VOO. Maybe $500-$1,000 per month.
Most important is when your income rises, be sure to keep the slope of your expenses in check so you don’t fully adjust to the new income.
The true way to build wealth is to keep increasing your income and savings while only moderately increasing your lifestyle.
I would not buy a home right now. You’re young, starting your career and a job opportunity or career change might arise that require you to move. I’d just invest away, avoid lifestyle creep and you’re looking at being a net worth millionaire by your late or even mid 30s.
I would probably rent and invest in index funds because it gives you the most flexibility