As the title says, trying to figure out how to invest and save my money.
Current stats:
$14,200 HYS
$2250 roth ira
$6kish 401k (I contribute 8% of salary)
$200ish BTC ($5 invested a week)
A few hundred in my checking acc
I currently make $4170 a month after taxes with $2200ish in expenses.
Should I save for a house to rent out in HYS?
Should I max Roth ira then continue putting money in the market?
I just want to be comfortable like most of us I’d assume.
27 y/o wondering what to do with my money
byu/Virtual_Corner_5311 inpersonalfinance
Posted by Virtual_Corner_5311
3 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
HYSA is emergency fund, around 6months worth of expenses.
Checking is 1-2 months expenses, just an in/out buffer for paychecks and bills.
Then contribute to matching in your 401k.
Then max your Roth IRA
Then go back to try maxing your 401k
If you still have more after that, add to a brokerage account.
Get out of BTC, thats just gambling at this point.
If you want to save for a house within 5 years, that goes in HYSA.
If over 5 years, invest it.
Roth IRA is also the market. You should be investing in total market index funds like VTI/VT
More info in the sub wiki
Seems you’re able to save a decent amount each check- and as this is Reddit enjoy the many opinions to come.
I wiuld max the Roth, and with the rest probably start a brokerage as you currently have 6 months emergency fund fully set.
What we don’t know are- do you have any loans/debts? If no, then great continue on the path. Do you have anything you want to save up for?
Regarding a house for rental income there’s a lot of math to do there- and given current interest rates and what a house rents for in your area it might not add up. The other thing to keep in mind is if anything breaks you have to fix it, so I’d suggest having or needing a lot more cash than you think.