I (21M) am pretty sure I have too much money in my HYSA and not enough in my investments. My question is how much should I keep in my HYSA, checking, and S&P 500.
– 16k HYSA
– 8.5k S&P
– 7.5k Checking
Edit: I think my emergency fund should be about 8k. Is now an okay time to move money into S&P even though it’s so up right now? Or should I wait till it drops a little bit.
Not sure when to when to move money into S&P 500
byu/Fancy_Astronaut2261 inpersonalfinance
Posted by Fancy_Astronaut2261
6 Comments
To answer your question, you need to start with a written budget.
Then follow the Prime Directive.
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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
How much should your emergency savings be? I would keep that amount on the HYSA.
What is your monthly take home and expenses?
The SP500 is essentially up a little bit more every day. Yesterday was a better day to do it than today, but today will be better than tomorrow.
>Or should I wait till it drops a little bit.
Unless you have EXCESSIVE cash, don’t wait for a drop. Once you figure out how much you really have to invest, dump it all at once. You’re too young to worry about dips.
Time in market > timing the market.
In other words, just get in now. It might go down, but it’ll go up again. It might also go up before you get in, and then go down when you finally do. No point in trying to predict it.