Looking for advice! I am 23 years old. I’ve worked since I was 16, but I am starting my first full time job soon where I’ll be making 48.5k/yr.
Currently I have:
• 37k in a HYSA.
• 2.5k in a Roth IRA.
• 12k in a 529 plan from my parents, if I want to go back to school in the future.
• No student loan payments after my bachelor’s degree.
• No other debt.
My expenses are:
•$600 monthly for rent.
• Around $300 monthly for groceries and gas.
• I’ll eventually be paying car insurance and phone.
What should I be doing with my 37k and future money from the new job? I know it shouldn’t sit in the savings account but I’m unsure of where to start with investing. I have used bank CDs in the past but am open to other ideas now that I have a full time job. Should I max out that Roth IRA even though I’m offered a 403b from my new job?
I appreciate any advice, thank you!
What to do with 37k in savings?
byu/BornDoughnut6658 inpersonalfinance
Posted by BornDoughnut6658
4 Comments
Sounds like you are asking about a framework for what to do with money.
Start with reviewing the Prime Directive in the PF Wiki. It will answer your question and many other questions you didn’t realize you should be asking.
* https://www.reddit.com//r/personalfinance/wiki/commontopics
https://old.reddit.com/r/personalfinance/wiki/commontopics
Leave it as you emergency fund,
Read the links provided in other posts, but at your age I wouldn’t *do* anything with it (aside from parking it in a high yield savings account).
Sure, it’s a huge “emergency fund” at your expenses, but I’m guessing more expensive housing and vehicle expenses are around the corner and this cushion can prevent incurring excessive debt trying to get your professional life started.