So I am 18 I go to community college that I get aid for. I live with my partner who is 19 in Seattle. We have a 1 bedroom rent controlled apartment. Our rent is 1300 a month, other expenses are food, cat food, music subscription, internet, electricity, and textbooks the works.
My partner works and makes 23 dollars an hour. I am not currently working as I am severely ill (think vomiting after every meal and more meds that you can count.) (I got ill about a month and a half ago) before then I worked as a nanny for 25 and hour and a tutor for 35 an hour.
We have 20k in our joint savings, 2k each in separate savings as a crash pad if we split, and about 1k in cash hidden.
I don’t have a retirement savings yet, and I don’t have a high yield savings, should I be investing? I want a house one day. I expect to get back to work. Our monthly expenses normally total around 1800-2000 (including rent) depending on food prices and if we run out of litter, toilet paper, and soap at the same time lol.
We both work part time as we are both students. Groceries are about 90-110 a week ish.
My partner gets some financial aid so that goes right in savings.
We have insurance (renters, health, and pet) but we paid for a year upfront with all 3.
What are we missing? How do we ensure our savings can keep growing? Do we have enough in savings that we can buy a bit of nice furniture for our apartment? Are we ok to get another cat?
Thanks for y’all’s help
18 and have no idea what to do with my money.
byu/duckduckgoose911 inpersonalfinance
Posted by duckduckgoose911
1 Comment
At $1800 to $2000 a month in expenses with $20k in savings, you are sitting on roughly 10 months of runway. That is genuinely good, especially for 18 and 19-year-olds in Seattle on student incomes. Most people your age have nothing close to that cushion.
The more important number right now is your partner’s take home on $23 an hour part-time. If that is covering the $1800 to $2000 monthly with anything left over, your savings are not actively shrinking while you recover, which changes the picture significantly. If it is not fully covering expenses, you are drawing down that $20k, and the timeline matters.
On investing, the honest answer is that a high-yield savings account for the $20k comes before any market investing at your stage. You do not have retirement accounts yet, your income is temporarily disrupted, and your 3 to 5-year goal is a house down payment. HYSA gives you 4 to 5% with zero risk and full liquidity. That is the right home for that money right now.
The furniture question and the second cat are both fine in moderation. You have a real cushion. Just do not let lifestyle expand while the income side is temporarily reduced.