What should I do with the money? I don't earn yet, save for 20 dollars approx per month. And get ateast 1.5k pocket money from my parents.
I want to do something with thelneg I have. Like I want to expand it more and maybe start a business but how? How should I do it?
I have 21k saved and I'm 20 years old
byu/Good_Savings_9650 inpersonalfinance
Posted by Good_Savings_9650
7 Comments
Check your local banks for high interest checking or saving accounts. Here locally I have 2 banks one offering 7% on checking for balances up to $35k and the other is 8%.
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Idk your current situation or future plans, but do not blow this money. Do not put a down payment on a fancy car and go into debt. Do not splurge and buy a bunch of small things over time. Do not let this creep your lifestyle cost that you can not afford.
The boring answer is to bank a high yield savings account and max your Roth IRA the next 3 years. Let it grow to ~$400k by age 60 to jump start retiremen.
Otherwise, you should treat yourself with something *reasonable* and put the rest into high yield savings. Don’t touch it unless you absolutely need to. If you need a car, pay cash for something reliable around $10k. You have one hell of a nest egg to get started.
Nice, a million more and you can retire!
research high yield savings accounts like Betterment, Sofi, Marcus by Goldman Sachs, etc. etc.- and also, get a job lol then you can really save esp if you’re getting an allowance from your parents? that’s dope
With what you have now, the easiest move is to start small. Maybe save a bit more consistently or try a simple side hustle online. Learn the basics of budgeting and investing first before jumping into a business, so your money can grow safely while you figure out your next steps.
Create a brokerage account with Fidelity. Buy FSKAX. Buy more when you have more free money. When you start working get an IRA or ROTH IRA account with them. Buy FSKAX in it. Do everything in your power to contribute the maximum of $7k each year and buy FSKAX. When the government ups the contribution limit follow along. If you have more after the max buy FSKAX in your brokerage account. In 40 years you will retire with more than enough to sustain yourself.