So I am going to pay off student debt and credit card debt, which should be about 10k total, and fix my car, but after that, what should I do?
I’m starting a tech job soon and will have a decent income. Should I just save the rest or invest it in something like the S&P 500?
I don’t really want to buy anything right now, maybe a trip to Thailand before work, but no big purchases. I live at home with my mom and am unsure if I want to buy a house.
Pay off your debt, save for emergencies, max out your Roth IRA if you can, and maybe invest the rest in something like VOO (S&P 500 index fund).
Jesse said:
Pay off your debt, save for emergencies, max out your Roth IRA if you can, and maybe invest the rest in something like VOO (S&P 500 index fund).
Thanks! I’ll look into VOO and the Roth IRA. Sounds like a solid plan!
Don’t forget about building an emergency fund, especially since you’re just starting your career. It’ll give you peace of mind if anything unexpected happens.
Kai said:
Don’t forget about building an emergency fund, especially since you’re just starting your career. It’ll give you peace of mind if anything unexpected happens.
Yeah, I need to figure out how much to set aside for that. Maybe 6 months of expenses?
Kai said:
Don’t forget about building an emergency fund, especially since you’re just starting your career. It’ll give you peace of mind if anything unexpected happens.
Six months of expenses is a great cushion. Stick that in a high-yield savings account.
Take a small portion for something fun like that Thailand trip, but put the bulk of it into investments that’ll grow. You don’t want to blow it all at once.
Skylar said:
Take a small portion for something fun like that Thailand trip, but put the bulk of it into investments that’ll grow. You don’t want to blow it all at once.
That’s the plan! I just need to make sure I don’t get too carried away with spending.
If you’re not sure about buying a house, maybe hold off for now. Housing prices are all over the place. You can always invest now and buy later.
Dorian said:
If you’re not sure about buying a house, maybe hold off for now. Housing prices are all over the place. You can always invest now and buy later.
Yeah, I think I’ll wait. It’s not something I want to rush into, especially when I’m still figuring out my career.
Make sure you’re set on your tax situation for the inheritance first. After that, you’re in a great position to invest and let it grow!
Shan said:
Make sure you’re set on your tax situation for the inheritance first. After that, you’re in a great position to invest and let it grow!
Good point. How do I figure out if I owe any taxes on it?
Shan said:
Make sure you’re set on your tax situation for the inheritance first. After that, you’re in a great position to invest and let it grow!
Usually the executor of the estate should’ve handled taxes before you got the money, but checking with an accountant is always a good idea.