For context
– I work for myself, so I have no 401k match or other retirement benefits
– my only debt is $12k in student loans
– low credit score due to old late car payments (car is paid off now)
– I have no savings or investments
– Was recently able to give myself a raise and can comfortably contribute $500/month to any given account
It may not seem like much but this is a lot of money for me and I don’t want to blow it. I do not make a lot of money, and no one taught me how to handle it. But I’m not going to use that as an excuse anymore. What is the first thing I should do with the 10k I’m coming into? And what additional advice do you have for anyone starting basically from scratch
Being gifted 10k- what should I do with it?
byu/Worth_Newspaper_7463 inpersonalfinance
Posted by Worth_Newspaper_7463
2 Comments
If you’re SE/1099 you can open a Solo 401k for yourself.
You should also have a Roth IRA.
So I’d max a Roth IRA, then start contributing to a Solo 401k.
You should also keep around 6months expenses as an emergency fund in a HYSA. 3 months would be a good start.
If you have no savings at all, this is the time to start an “emergency fund.” This should usually be 3-6 months worth of regular expenses in a savings account, preferably a HYSA.
What are the interest rates on the student loans?