I am 23. I grew up poor, moved out at 17 had some stuff happen, moved back in with my parents at 21, and manage to garner 30k in that time til 23 (had money left over from saving during that time). I went to college, got a 2 year degree, and dealt with much just to get to this point. Now that I have 5k in savings, and 25 in hysa, I have a general idea what to do, but I want to see a general opinion before I act. I have not seen a thread with my exact scenario, so I am curious how the nuance will affect the responses. Ik i shld probably drop atleast 7k into a retirement fund according to trends, but beyond that, I want to see some varied answers in this matter. I lived on my own before covid, but moved back in. I want to see how much I can set up before moving out once more. I do not have a car atm. Tldr; I want to see how much I can do with this money to set up my future before I get a car and move out.
23 With 30K In Savings And Nothing Else
byu/Unfair_Object_8725 inpersonalfinance
Posted by Unfair_Object_8725
3 Comments
At your age, I would consider building up the HYSA for another year before considering retirement accounts. Inflation isn’t going away, and when you move out again, there will be unexpected costs. You mention you don’t have a car, but not where you live. Can you get stable work without a car? Otherwise you need to budget for something very reliable, and also for unexpected repair expenses.
First, going from poverty at 17 to $30K saved by 23 with a degree is genuinely impressive. Most people don’t manage half that with a much easier start. Don’t undersell what you’ve already done.
Quick framework for what to do next, in order:
1. Confirm the emergency fund is real**.** $5K liquid is okay, but the right number is 3-6 months of *your* expenses, not a generic figure. If you can run a bare-bones month on $1,500, then $5K is a 3-month buffer and you’re set. If your current bare-bones is $2,500/month, push the emergency fund to $7-10K before doing anything else with the rest.
2. Roth IRA, max it out. $7,000 for 2026. At 23, the Roth is mathematically the best account you’ll ever have access to 40+ years of tax-free growth on every dollar. Even if you only fund it once and never touch it again, that single $7K could be worth $150K+ at retirement at average market returns. This is the highest-leverage move on your list.
3. Whatever’s left, boring index funds in a regular brokerage. VTI or VOO. Don’t overthink it. Don’t pick stocks. Don’t try to time anything.
Two things worth asking yourself before you execute:
What’s your timeline to move out? If it’s “in the next 12 months,” keep more in the HYSA, less in long-term investments. Money you’ll need within 3-5 years shouldn’t be in the market.
Do you have any debt at all? You didn’t mention any, but credit cards, family money owed, anything. If yes, that changes the order.
Tl;dr: emergency fund right-sized → max Roth → rest in index funds. But do step 1 honestly and step 2 immediately. The Roth at 23 is the move you’ll thank yourself for at 50.
Keep at least 6 months of living expenses in high yield savings acct. If you want to save for a car start a separate savings bucket for car purchase. Contribute to 401k, if available, to get full employer match. Then max out Roth IRA. If you have $ left over contribute more to 401k. Choose low cost stock index funds for instant diversification. Stay the course no matter what market news you hear.