College student needs financial advice!

Hi, I am a college student and I'm trying to figure out the best financial plan for my future. I come from a single parent family and we've struggled a lot financially and I've had to pay for college entirely off of student loans and using credit cards to buy books and food and I have to admit that I probably wasted a lot of money on "little things" like buying lunch or pizza on the weekends, which of course add up to a lot if you're not careful. When I graduate in June, I will have about $32,000 in student loans (half of which is subsidized) which I will probably consolidate when I get out of school, and around $4000 in credit card debt (10.8%APR). Hopefully I can get the credit card payed off before graduation. Lately, God has been teaching me that it is his money and not mine, and I need to be a good steward. So, I'm trying to get my spending under control and start handling my finances like a man. I'm in a pretty big hole right now, but I have hope that it will get better. I recognize that college debt is "good debt" because it is an investment on my future, but it is still debt and I have to pay it.

I am planning to move to Korea to teach English and I will be doing pretty well financially for a new graduate. Here is what my financial situation will probably look like:

Salary: $2,500/month
Tithe: $250
Taxes: 3-4% ($100)
Korean Pension Fund: 4.5% ($112.50)(+4.5% matched by employer) = 9% total ($225)

roughly $2,050 after deductions

Fixed Living Expenses:
Rent: free
Utility/Internet: $125
Food: $175
Transportation: $25
Cell Phone: $50

Variable Living Expenses
Entertainment/Personal: $125

Grand Total: $500

$2,050-500 = $1,550

What would be the smartest way for me to use this money?
Currently I am thinking that the best thing would be to just make the minimum payment on my student loan and then put the rest toward the credit card debt and then start paying more on the student loan after the 4 or 5 months that it takes to pay off the credit card. I have a lot of other goals though, but I'm not totally sure how to go about achieving them in the best way. For example, if my student loans only have a 5% interest rate, but I could invest in a mutual fund that has a 9% return, it might be smarter to invest. I'm not really sure where to find the balance in all that though. I also want to start a retirement fund, buy a house, get married and all of that stuff in the future and I would like to plan for that as early as possible. In case it helps, right now I am 22, and I will have just turned 23 when I start teaching in Korea and earning money. There may be some other additional expenses such as medical insurance, but I hear it is really inexpensive in Korea.

My other goals are:

Marriage
I would like to start saving to get married. I'm not in a relationship right now, but it is something that I want to plan for because I anticipate it happening sometime soon (I hope!). Just a side note, but marriage would also greatly impact my financial situation. If I am married to a Korean citizen (which is very likely) then I will be able to legally teach private lessons, which could easily bring in another $2000/mo in addition to my wife's salary (but then I also have to consider if my wife has any liabilities like student loans and credit card debt). Altogether, this could raise our total income to $5-6,000, which would enable us to pay off debts much more quickly and save or invest more money.

Retirement
I want to put money into a retirement fund as early as possible. I am aware of the miracle of compound interest as Einstein put it, and I have yet to take advantage of it because I am just in debt and basically completely on my own financially. I know I will be contributing to the Korean Pension plan, but I'm not totally sure how it works or what the interest rates are or anything like that. I don't they offer 401(k) in Korea either, but I could set up an IRA at a bank or something.

Emergency Fund
I want to create an emergency account just in case something happens. I've read that I should have at least 3 months of living expenses saved up in this. Is that right? Is it smart for this money to be in money market fund or something, or should it just be a regular savings account?

Investments
I want to start investing money in stocks, mutual funds, bonds, or whatever would be best and would provide a good return on my investment.

Starting a family
I also want to start saving money for having a baby. Diapers and baby wipes and shoes and everything else are expensive and add up quickly. Not to mention that my wife will need to be able to stay home with the baby for a few years before she could go back to work. What is the best way for me to start saving for this?

Education
I would also like to put money away for my kids college expenses, but I don't know how much, or when I should (or will have the money) to start this.
Also, I myself, may want to go to graduate school someday, so it would be nice to have some money stashed away for that too.

Buying a home
Finally, I want to be a homeowner someday. I would like to start putting money away for a down payment on a home. I have no idea how much I will be looking to spend on a home or what the market is going to look like at the time we are ready to buy. I don't anticipate wanting to actually buy a home until at least a year or two after I am married, but it could potentially be a good investment opportunity for me if I buy the right property when I am younger, but I don't know the first thing about investing in real estate (not yet!). Plus I will have a free apartment from the school anyway, so I can just put the $500 I'm saving on rent toward paying down my debts, and saving for a down payment on a home in the future.

By the way, at the end of each year, there is a contract completion bonus equal to one month's salary. So, in my case, that's another $2,500, which brings my annual salary to $32,500 - taxes + free apartment. However, I anticipate that I will probably want to use that bonus money to do some traveling or buy Christmas presents or whatever.

I also want you to know that I feel very clearly called to go to Korea to live as a missionary long term. This isn't just a "I want to go make some money quick" type thing, but is really want I feel that God has planned for my life and has been preparing me for over the past couple of years. With that said, this is what I anticipate my financial situation to be for a while.

What would be the best way for me to handle my money?

Any advice you can offer will be greatly appreciated.

Thanks!

If you were staying in the USA, I'd say you have a pretty good plan (although I'd add that you should invest in an IRA as soon as possible). Some parts of your plan seem a bit odd, like "saving for marriage". If she works and you work, if you own a home, then there's no need to "save for marriage", unless you mean to have one of those godawfully expensive weddings. Also, saving for a baby is a bit humorous, since in the USA, a baby can cost you a good quarter million before they even go to college! (Which is why you should probably not bank on your future wife staying home -- you have this all mapped out as if you actually have control over things like that! Might as well schedule when you'll scratch your butt, too!)

But you're moving to a foreign country, and when you say "Korea", I'm assuming you mean SOUTH Korea, which is relatively stable, except for the fact that Kim Jong Il can choose to nuke you off the face of the planet at any moment he chooses, which makes planning for the future a bit awkward. I don't know what kind of retirement funds are available to you there, if there are penalties for moving money out of the country and invest in another country's funds (like the USA's). I don't know what are the rules are for foreign ownership of Korean property (I'm assuming you're American, and will retain your citizenship status when in Korea). And I can't predict the future -- how long South Korea will remain a sovereign nation what with both China and North Korea breathing down its neck, how long Americans will be appreciated in the nation, how long religious freedom (including the freedom to proselytize as a missionary) will last, etc. These are not things we generally worry about in the USA, and thus they don't figure into our own financial plans.

Generally speaking, your rough outline -- pay off debt, purchase home, hold off marriage and procreation until you are financially stable -- is a good one. Any specifics, however, really depend on what the nation of Korea allows, and how future world events unfold.

Do you think it would be wise for me to open an IRA now, even though I have a lot of student debt and some credit card debt? Or should I pay off the credit card completely before I invest in a retirement fund?

I would pay off your credit card debt first and foremost, as you'll get an automatic 10.8% return on the money you use to pay it off (by avoiding interest). Student loan debt is different because for the most part it's tax-deductible and usually held a much lower rate than you could get from a market investment. However, I have no idea what will happen with your tax situation in Korea.

Honestly, you have a chance to pay down some serious debt, save for a future home, and still have money to ENJOY YOURSELF out there. Enjoy it while you can.

you may want to transfer your credit card balance to a new one using a 0% balance transfer offer. this can save you a lot of money until you pay it down.

you may want to transfer your credit card balance to a new one using a 0% balance transfer offer. this can save you a lot of money until you pay it down.

An alternate to a 0% balance transfer offer is a low rate life of the balance offer that some credit card companies offer from time to time. Just make sure that if there is a balance transfer fee that it is not an "uncapped offer".

I read several personal finance blogs and came across this (http://www.hustlermoneyblog.com/credit-cards-with-no-balance-transfer-fee/) article on good balance transfer credit cards. Hope this helps you out!

I would first transfer your current credit card balance to either a low interest rate card or to a balance transfer card. This will allow you to pay the card off quicker. Then, focus on paying those student loans off. You may want to consolidate these loans into one lower interest loan as well. After that, begin to save as much money as possible. Follow these simple steps and you should be out of debt in no time!

I am a college student right now and I am not looking forward to the student loans I will have to pay. My credit card is paid off in full now and I have no other debt for now or in the foreseeable future, but I cannot save a dime with my current living situation and modest income. I can't wait until I graduate to start saving money. Hopefully, I can do this even while paying off the loans.

I would say you have a pretty good plan. After ten years in college (I'm currently working on my PhD) I can empathize with how hard it is to make the little money decisions. Obviously, you want to pay of your credit cards ASAP and start working on putting a dent on the student loans... but don't shortchange yourself by waiting to save and invest, even if it's just a few dollars a month. By starting to save and invest in your future you will learn more about how to manage your money and be more confident going forward. Good luck!

[/QUOTE]When I graduate in June, I will have about $32,000 in student loans (half of which is subsidized) which I will probably consolidate when I get out of school, [QUOTE]

Have you looked into consolidating before you graduate? I was told that if you were to do this a couple months before graduating you can lock in on a pretty low rate.

Your plan otherwise sounds pretty good.