I am 27M, making ~$8k/m post taxes and 401k contributions (10%). I have ~$110k in my HYSA that is yielding around 3.3% interest every month which I feel like is pretty shitty.
I wanted to understand how much should I keep in my HYSA and what should I even invest in the rest of the money?
I pay ~$1.6k/m in rent, $400ish for gas + insurance and $1k in food + miscellaneous things.
I am investing ~2k a month in stocks here and there and have invested ~$80k in market right now. Really looking for good advice – thanks so much! 🙂
How much should I keep in my HYSA?
byu/urban_monkey19 inpersonalfinance
Posted by urban_monkey19
3 Comments
6-12 months of expenses is more than enough. Especially if you don’t forsee yourself being unemployed for a long time. You can always liquidate stocks in a taxable brokerage easily anyways, worst comes to worse.
Which bank gives 3.3% interest on $110K+?
Standard advice is 3-6 months expenses in cash. So a rough estimate is that you need 9k-24k in your HYSA. The rest could be invested. Unless you will need cash in the next 3 years (down payment, wedding). Then keep that in something low risk.
Are you maxing 401k? Do you have a Roth IRA? Might want to look into that. See the wiki flowchart