In need of some advice.
I'm 23 and less than a year removed from graduating college. I was lucky enough to land a full time job in my degree in about six months after graduating, journalist so I'm not raking in crazy cash but have been comfortable enough to be living on my own and financially independent.
We lost my grandma a couple months ago and just learned this morning that I was left around $30,000. Not sure when this money will arrive but it was in documentation that it was mine. My parents have never been good with money, astronomically bad actually and it has brought a lot of struggle for my siblings and I, I never learned how to use money as something that will help me in the long run and not as something to get by on and just survive.
What can I do with this money that I won't regret and will turn into something that positively effects my life long term and puts me in a position where I can "enter real life" one step ahead? Where are the places I should be putting it to keep it aside or to make an investment? I have experience with the stock market so I'm not a stranger to that aspect. Should I put a chunk of it in a Roth IRA?
Getting unexpected inheritance money, what do I do with it?
byu/Actual-Air-8792 inpersonalfinance
Posted by Actual-Air-8792
6 Comments
eliminate debt
invest in s&p500 and forget about it for 20+ years
The Personal Finance Wiki is excellent. This section is specific to your situation:
https://www.reddit.com/r/personalfinance/wiki/windfall/
You can either share it with your siblings or you yourself can invest in a mutual fund for long term through a Finance agent. You can then withdraw it part by part (to reduce tax) to meet your expense (touring, pay debts etc)
Don’t tell anyone.
Read: the simple path to wealth ( library should have a copy)
Sounds like you already have a budget, start an emergency fund in an HYSA, open a Roth IRA, does work have a 401K and offer a match (don’t leave free money on the table).
If only debt is student loans, see if any are forgivable.
If there is concern about your parents “needing” money from you, it might be best to 7k 2026 Ira, 7-14 in a 9-12 month CD for 2027&28 IRA as you won’t be tempted to touch it. 5k emergency fund in HYSA. Invest in 401k up to match if offered.
Depending on how much you owe in student loans and interest rate pay extra principal it might be mentally freeing to put 10-15k towards the loans especially if high interest rates
Knock out any debt, put a good chuck in your retirement, or boost up your emergency fund if it’s not where you want it to be.
Also do something nice for yourself in her honor. Enjoy a nice meal out, go to a ball game, take a fun day trip, whatever suits your interests.
What are your student loan balances and rates? Are they consolidated or multiple individual loans of varying rates?
A lot changed during my college career and my loans ranged from 8-16% for various semesters. Paying of higher interest debt, à la your credit cards, helps your monthly budget substantially.