Currently 24, just purchased a home with my wife and we have 20k in checking/saving. Should we be putting more into our savings and at what point should we start putting our money elsewhere.
Need some insight after buying a home
byu/Best-Paramedic8801 inpersonalfinance
Posted by Best-Paramedic8801
4 Comments
You should build up 3-6 months of living expenses in your emergency fund (savings account).
Having said that, you should also immediately open a brokerage account and start transferring, like, $20 a month into there. I’m giving you permission to do this today.
You want to have good financial habits in place once your savings account is ready.
At 24 with a house and $20k saved, you are honestly in a pretty solid spot i would say.
Since you just bought a home, I’d focus first on keeping a strong emergency fund (around 3 – 6 months of expenses, maybe more as homeowners). Houses always come with surprise costs.
Once that feels comfortable
* get any employer 401(k) match
* pay off high interest debt
* start investing extra money consistently (Roth IRA, index funds …… hmmm etc
You generally don’t want too much cash sitting in checking forever, but as new homeowners it’s smart not to invest too aggressively right away either. what do you think!
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What’s your interest rate and monthly payments on the home? Typically you want to keep a few months of expense around in savings and your mortgage payments are a big part of your expenses.