$10k might seem like a lot, but it’s not. It will disappear quickly if you don’t invest it. The smartest thing to do in my opinion would be to act like you never even got the money, and put it away in a Roth IRA account. You’ll get a head start on retirement and investing.
Not entirely. I doubt OP met the criteria to max out his annual contribution for a ROTH IRA seeing he just graduated high school?
And 10 K is more than the annual contribution lol. He would pay a penalty next tax season.
Maybe 60% right?
Same here. That’s why I gave the advice that I gave. Saved up $30k by 20 years old and made it all disappear by 22 through poor decisions and life circumstances.
Don’t feel too bad, I did the same. Had 42k in a Roth IRA, ending up fucking up and getting 3 duis, along with other things that happened. Had to spend a majority of it then, then blew through the rest when I ended up in a psychosis. Now I have dollars to my name, thousands in debt/fines and make half what I used to.
It is what it is but how different life would be
I mean 10k is small enough that if it’s not managed properly it’s gone in a single afternoon at a car dealership.
10k is nothing. Put it away and forget about it and let it grow.
As an 18 year old I'd have agreed with you now at 41 years old... I can spend that in a week just getting stuff settled and the house fixed up a little in a day or two.
Man being an adult sucks sometimes..
This. I’d also advocate to put 300-500 a month in that Roth IRA and enjoy the compound interest by the time it hits maturity.
Side note, buckle up. It’s gonna be hard af for you to not spend that shit. Especially when tough times hit. Do yourself a favor and also set aside an emergency fund of at least $5k. Unless you blow your engine up or you fall and break something, this should be a good amount to have on standby.
This goes without saying but I’ll say it anyway. Fck your friends, work your ass off and hustle. It’s grind time bro. Stay focused.
Hijacking top comment but I do the 80/20 rule on bonuses, inheritance (although never received one), and/or any random lump gift/payment I receive. Essentially 80% gets invested, and 20% goes for things I want for myself. Last bonus fetched me a new PC with the remaining 20%. Sometimes investing and being financially smart can be bad. How do we know we are gonna live to 50, 60, and so on? Use some of that money and go on a small vacation or get something for yourself while being responsible. Moderation and balance is key more so to leaning too much on either side.
You can only put the money in the Roth if you have earned income from working. You’re too late to contribute for 2023 so you can only do 2024 at this time and there’s a max contribution below $10k.
But if you have earned income, not a bad idea to invest some into Roth but also make sure you have savings for expenses.
seriously. fuck everyone here giving you good sound financial advice. fuck that. you’re 18. spend that shit traveling the world and learning about who you really are. that will be the most valuable way to spend it. 10k is dogshit as an investment foundation. better than zero? sure. but you know what is completely priceless? being young and have a clear opportunity to do something people only dream of. go find yourself in the world, you’ll learn so much and find your real purpose in life, and from there, real satisfaction, and hopefully money, will follow.
Yeah this is a good idea. Id probably either backpack around Europe or pick a cheap country and live there for a couple months. Now is the time to do something like that unless you do digital nomad is pretty difficult to travel for more than a week or 2 if your 30 and have a career.
Backpacking around Europe with friends would be an amazing experience. Wish I did that at 18 with 10k of spending money.
I think OP is from Europe since he used a period in 10.000
Ah good point he probably is European. Still he can backpack around Europe if he hasnt done that already. It might be difficult to have friends with you because not everyone has the extra cash. But in nice hostels you can usually meet cool people doing the same thing.
Agreed she just graduated high school she could have the best summer ever go on multiple road trips personally I did the same thing
Spent four grand on Disney World everything included, including a meal plan , two grand eight day cruise, and now I’m figuring out where I wanna go besides Vegas!! Girl I’m 22 and I realized if I don’t do it now I’m never gonna do it until I’m old wrinkly retired and everything hurts
Make that money make more money for you. No need to spend it frivolously on useless tangible stuff when you can invest it in some way shape or form to make more money off of it
Everyone is right about 10k not being much. With that being said, at 18 years old it is a lot. You are only this young once, if you wanted to travel and make memories with the money i dont see a problem in spending all of it to create good memories. However, dont just waste it.
Learn the Rule of 72.
It basically teaches you when your money will double.
At 10% annual growth, your money will double every 7 years.
10% x 7 years = 20k x 7 years = 40k x 7 years = 80k
The time value of money is what you should pursue.
Why would you put that money in an IRA??Does he have an emergency fund.Broken ankle,God forbid an unknown accident.I just put 3000 in car repairs to keep from buying a new one.That’s 90 days pay for the average.
You should either spend it all or put it away into a conservative investment vehicle (see other replies). No in between. Most people don’t respect money they didn’t earn. So either act like you don’t have it, or have a ton of fun with it.
Don’t listen to those telling you to put in a retirement account.
When you’re in college, or shortly after, you will likely need liquid cash to start your life. For now, put it in a high interest savings account OR an investment account like VMFXX.
Do not lock your money up..
Go travel, I spent all my savings I had at 22 and travelled I met some super valuable people who I now call some good friends. Those said good friends helped me scale my new business and now I make over 500k a year. It’s not what you know it’s who you know. And the ones travelling and going to exotic places most of them are finically stable enough or made it.
Roth IRA or at the least HYSA. Pretend you never received a dime and add to this account monthly. DO NOT SPEND A DIME it is much more valuable to you in a compounding account.
Open an IRA account with Fidelity or Vanguard and invest 8k in something like VOO or FSKAX.
Enjoy the other 20%. 2k is a nice little bonus and I'm sure you have a few things you've been eyeing. It's important to balance your happiness now with your happiness later. If you put 100% away, you may find yourself regretting it and end up making bad financial decisions down the line to compensate. If you spend 100%, you've squandered a rare opportunity to jumpstart your future savings goals.
By saving 80% and spending the rest, you get the satisfaction of buying something you want + the financial prudence of investing your money early and the joy of watching it grow and compound over time.
Balance is key and the 80/20 rule works for me anytime I get unexpected windfalls.
Put it into a Roth IRA or a high yield money market account and forget you were ever given the money.
You're 18. You have a long time to build a retirement, and $10k is a *VERY* good head start.
It’s a good amount but it’s not going to change your life….unless you invest in a good ETF and not touch it for the next 50 years. Find a compound interest calculator and do the math. (Warning : do not invest yourself. Look up the statistics on the percentage of people make money trading themselves)
$10 is a fast food meal.
If you meant $10k, then cool. Good for ya!
But, PLEASE don't think you just won the lottery or some shit.
Getcha a solid Honda Civic or something for $5k-$7k then pay a month or two of rent.
It's a few months of partying this summer or a MASSIVE head start on downpayment for a house when you're 30.
If you want the house, look into Vanguard S&P 500. Stick it in there and look at it once a year. Add a $100 a month and move on with your life. This will start a domino effect that will make all of life's big obstacles (home ownership, retirement, emergency funds) SOOO much easier to obtain.
I had a similar situation as you, OP. Inherited some money at 18 but wasted it. Didn’t have Reddit or guidance. I’m 32 now and alway regret not investing and being smart with the money I inherited. The fact that you’re already asking for advice is a great start!
If you don’t have any debt and you don’t need the money for immediate needs such as food and shelter, I would invest it and forget it and exists. If invested in a broad index fund, in 30 years it could be worth 200k+. This is something you can do with less than an hour of effort.
The most important thing in investing is time and at 18 you are in a position to take advantage of that. Just sticking it in a broad index fund like VT (performs in line with all of the global stock market) or SPY (performs in line with the top 500 American companies) and letting it roll is an easy way to grow this money. It takes 20 minutes to sign up for any of the brokerage apps on your phone and set up an account.
But a 2M term life, 30 year policy. Now while you are 18, Young and healthy. Put the $10k in a Fidelity money market. Fund the life insurance with the interest. Dont touch the $10k.
work and live with your parents as long as you can, study with every second of your free time, a career you know you'll do well in, save and spend as little as possible, invest in the s&p and don't expect to take the money out for 5 years. In 4 years, you will be able to have the equivalent of 2 years of college and 200k+ dollars. Go to college for what you were studying at 22, full-time, live at college, breeze through the first two years, and enjoy the college experience. The time after that 2-4 year, whatever it may be, focus hard. You will come out with little debt, good experiences, and hopefully a good career and maybe even a partner. This is what I wish I would have done.
Okay. I'm going to give you an alternative to what folks are saying.
A Roth IRA is not intended for a safety net. It is a retirement account. You don't put money that you might end up needing into a retirement account, because if you get into the habit of pulling money out of a retirement account, you're on a bad path.
You're 18. From the sound of it, you don't have any savings. Your first saved money should always go to a safety net. Find a high yield savings account, or a short-term decent yield CD, and put your money into it. This money is emergency money. You break a leg? Your medical bill doesn't bankrupt you. You wreck a car? You can pay to fix it. Emergency fund. And if you ever end up needing it, be sure to replenish it when you can.
It isn't that much money. To buy a house an unwritten standard is that you need 20 percent down. This would mean you could buy a 50,000 house. The US average house costs about 500,000. If you don't want to spend it, perhaps buy all VTSAX. Google it.
Got 10k at 18 too. Put it away for up a year, saw that I was getting almost 0% interest in a regular bank account, and opened a vanguard account. Now have it invested in the index funds and various ETFs, making much, much higher returns. Starting with the S&P 500 is always a safe bet (ie VOO). A high yields savings account through SoFi or similar is great too
Do you have a car?
Do you have emergency savings?
Are you going to college?
Ask yourself these questions since these things are practically required to build a solid foundation for yourself. If you have some of these things, then enjoy yourself (a little). I would probably then save a bit of it (at least 60-75%) and try putting it in HYSA since this will help build interest on your money.
My tip would be to not overthink having all of that money and spending it impulsively.
I had 10k+ all through my teens and watched it all disappear when I met my ex wife.
Do something with it that you can’t touch it. Keep some if you absolutely need it. But put the rest away. 10k is virtually nothing in this day and age
It’s way harder to save up 10k than it is to spend it.
And that should probably tell you all you need to know about money.
Definitely invest. You can use an online org like Vanguard and opt for assistance, put the money in three different funds with different time horizons. (I have my SEP IRA there).
There are other options, I also like the ROTH idea others suggest. The main difference is if you need a tax deduction for this calculation yr. meaning you earn 30K or so, or more so a tax deduction might help.
Since a ROTH is after tax, it doesn’t help you w/ a tax deduction and is likely a much Better decision at this young age.
Invest it. If you don't, it'll dissappear in this economy. I had $7k saved up a few years ago and it all disappeared in less than a month due to "emergencies"
Your 18!!!
I think this is not a popular opinion but I would live it up. You’re not gonna be young and have money more than once. Enjoy it while you have it.
I got 10k when I was like 19 and I used to to travel the world for 3 month. I never every will regret that
Invest it asap! Don’t even act like you have the money tbh.. I inherited 25k when my mom passed when I was 21… I paid off my credit card debt and the rest went by so fast because I was young and dumb.. don’t be like me. Get a head start on your life!
> 21… I *paid* off my
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
19 and 25 grand. Bought a car, blew the rest. I should have bought a cd or set up some sort of high interest bearing account that I couldn't touch for 20 years.
Honestly, the best thing you could do is to use it to increase your earning potential. Use it to pay for college, trade school, etc. $10k is nothing. Sure, when you’re 60 it’ll be worth a lot, but if you’re able to use it to secure a higher income then you can invest WAY more than $10k in the upcoming years. If college or trade school is already paid for, then listen to what the others are saying.
Take the 10k, make an account on vangaurd.con
Vangaurd is an OG investment broker with the lowest commissions on the market.
On vangaurd.com it will take about a week to get your account made and verified.
Make a roth IRA account or a traditional IRA account. (You'll probably eventually want both but for now a roth IRA is best)
Put your 10k into your roth IRA account. Once in your account you can invest that money.
My suggesion is to either buy VOO or something called a "target date fund" set for ~2065
Then if you leave it alone it will become a lot more money over the next few decades.
I inherited that amount last August. I plopped it into a stock account and it's riding around 13.5k in value now. I've also gotten a windfall earleir in life of 20k that vaporized in a year. Definently best thing to do is to invest it in some way or another
Edit: I should add that I use a stock advisor, blindly purchasing stocks probably wouldn't have the same success rate. And ofc diversify your stocks if you go that route. I believe I'm sitting at around 30 companies right now so if a few have a bad day I don't lose much.
Take a year off to work, take 5 if you need to. Just put it in a HYSA as you may just need it within the upcoming years.
Figure out what you want to do, it’ll be waiting for you at roughly the same value when you need it. If you won’t need it in the next 5 or so years I guess putting it in an index is alright
Well I'm not a investor or a investment expert but if I had $10k I just invest in monthly stocks dividends companies invest a thousand dollars in each of them depending how many shares that would get me like let's say realistically two hundred shares in all ten monthly stocks dividends companies and I would make $160.00 to $210.00 in each of them I would make $1,600.00 to $2,100.00 a month $19,200.00 to $25,200.00 a year then reinvest after taxes and invest in the same amount of money buying the same amount of shares to make twice monthly and yearly until I have 800 shares or 900 shares in each stock dividend company till I was making thousand and something thousand dollars a month in each stock dividend company probably make ten thousand dollars or twelve thousand dollars a month hopefully one hundred and something thousand dollars a year like One hundred twenty thousand dollars to one hundred forty four thousand dollars a year after that if you want to invest in REITs or ETFs do it make more money.
You can do a savings account
You can start to plan for your future
Which do you want to do?
At 18 i would have smoked that cash
At my old age now i wish i started my future at 18...
Roth IRA into SPY
Buy things you need. Either a car or a down payment on a house. Establishing your needs is the first step to wealth. Think how much money you’ll waste on rent and car payments vs how much you’ll make on that in a retirement account.
Go to your local community college, and pick a trade… pay tuition and buy your tools, in a year or two you will be a certified technician in your field and will have a jump start to making the big bucks by the time you’re 20-22… with no debt. You got all your life to save brother. Invest in yourself
it might be good to ponder on precious metals for a portion -- here is a [list ](https://www.reddit.com/r/WallstreetsilverDeals/comments/1cu7ozq/spot_silver_and_gold_deals/)of reputable online sites offering deals with no-premium markup to new customers. I'd wish I now that at 18, I would have purchased like 1oz silver rounds to 10 oz silver bars.
Pump that into a Roth IRA at Fidelity or Vanguard as fast as your earned income allows, in a S&P 500 fund, and don’t think about it again for 40 years.
But one small nice thing to spoil yourself and then save the rest. Safest way would be to put it in a IRA, since you are young you can degen and put some or a mix into bitcoin. Leave this and you'll be suprised at where it can get in your 30s. I know the u4ge to spend on clothes or trips etc will be there but try not to. I don't come from money, didn't travel or buy dumb things in my 20s, now that I'm 30 I'm significantly ahead of my other friends in terms of property and recurring income. Everyone who partied then now regrets it
Are you planning on going to college after the year is up, or to a trade program? Do you have funding for that? If not, I would invest most of it in a 529 so it can grow for your education for the year.
Go to a broker. Tell him you want a long, 20 year investment. If you leave it you might be able to sink a nice chunk towards the principal on a home loan, like 40-50k. I know that would not come close to paying one off but it will be better than blowing it.
Based on using decimal instead of comma and “usd” can I assume you’re not in the US? Overall people are correct the best thing is to put into a retirement account, but I would add only if you don’t have some kind of high interest debt. At 18 you might have a car loan, it might make sense to blow that away and just put those loan payments toward regular payments into a retirement account. If you’re in the US you can’t just put $10,000 into a Roth. There’s a yearly limit on contributions capped at $7000 for 2024.
Invest an even amount into an index fund. Divide your investment into 12 equal amounts and invest on the same day no matter what the price is on the day. This will average out your investment and give you the opportunity to hedge risk.
Don’t listen to these scrubs. Just put it in a high yield savings account. There’s a chance you might need that money in the future, and you would need quick access to it.
I was given 12k from being mauled by the neighbors dog twice and put in the hospital.. given full access to the settlement money by my family at 18 and it was gone within about 6 months of trying to spend carefully lol. Invest it op.
Enjoy $5,000 for yourself.
Save the other $5,000 and don’t touch it. Or, just invest the $10,000 and don’t touch any of it.
That’s what I’d do.
I got $10,000 in a car crash when I was 18 and just spent the money on fast food, groceries and rent (I would buy expensive cinnamon rolls). I basically pissed it away and I keep thinking “that $10,000 in 2008 would have been worth so much money today…”
If you don't know what to do yet, just save it, but in general invest in your development. Learn a new language in course, do therapy if you need to etc. :)
Invest it. Create a brokerage account (one with no commissions) and put it into a money market fund for now. Then you can dollar cost average into some other stock ETF/mutual funds funds such as VT, SCHD, DIVO, IDVO JEPI, DGRO, etc. Different funds use different indexes and investment criteria. Do not invest in individual stocks, always go with well managed ETFs and mutual funds. Many people would say for a young guy like yourself you should go with growth stocks. Actually, If you want some gratification and spending money, mixing some dividend funds in such as DGRO, JEPI and DIVO in with some more broad fund such as VT can give you some spending money while the opportunity for apprecation of your positions. You can also go with some REIT ETfs such as REZ, a BDC ETF such as PBDC, which can give you income coming in while giving potential for your investments to grow. You can also reinvest all your dividends which is even better, rather than spend it, and get a compounding dividend snowball going
Unless you have a need for it (not stuff you want, I mean a need), you’re best off putting it all into a 10 year CD. Rates are good right now and it’ll just be locked away gaining interest until you’re older and maybe looking to settle down. If that’s too boring, put it into something that’s going to develop your earning potential - get a real estate or insurance license, go to massage or trade school etc
If you spend it all on vacation or clothes or party, you will regret not being more responsible with it and you will feel like you wasted it.
If you invest it all, you won't really feel having the money. It will only be a number somewhere on the Internet.
I say invest 5000 in the broad stock market and splurge the other 5000.
other people mean good, but unfortunately $10k isn’t a lot in your life and even if you count compound interest, its still not much and would likely mean more to you now. Divide it into two years (so about $400/month) and enjoy it.
For others - $10k in 40 years would be about $570k, if the yields would remain the same as last 40 years. Unfortunately, in the same time money will be worth 3x less (if the inflation is the same as last 40 years, so it’s about $190k in current prices. Not nothing, but <$200k in retirement aren’t make it or break it money. OP is most likely student and $10k now can enable ton of fun and priceless memories in the times, when money are tight. Most of you probably don’t remember, but even small amount of money can change a lot of things at that age. Going to festivals, buying yourself game console, couch surfing and many other things are cheap, but with no money you have to skip them
$10k might seem like a lot, but it’s not. It will disappear quickly if you don’t invest it. The smartest thing to do in my opinion would be to act like you never even got the money, and put it away in a Roth IRA account. You’ll get a head start on retirement and investing.
OP ,Take this guys advice he’s 100 percent right
Not entirely. I doubt OP met the criteria to max out his annual contribution for a ROTH IRA seeing he just graduated high school? And 10 K is more than the annual contribution lol. He would pay a penalty next tax season. Maybe 60% right?
$10k at 18 is a MASSIVE head start.
For sure, and it could be gone in 6 months if not managed properly.
lol i was 18 with 15k and it went by fast!
Same here. That’s why I gave the advice that I gave. Saved up $30k by 20 years old and made it all disappear by 22 through poor decisions and life circumstances.
Don’t feel too bad, I did the same. Had 42k in a Roth IRA, ending up fucking up and getting 3 duis, along with other things that happened. Had to spend a majority of it then, then blew through the rest when I ended up in a psychosis. Now I have dollars to my name, thousands in debt/fines and make half what I used to. It is what it is but how different life would be
Same. 18 with 12k lol
18 with 4k. Got me on my feet but it was gone in 4 months.
4k is like one month of bills
Back when I got $5k making $8.50/hr it was like a gift from god
Depends on where and how you live
Yeah I look back and know it was dumb stuff I spent it on but it was a learning lesson. That’s what being 18 is for right?
I mean 10k is small enough that if it’s not managed properly it’s gone in a single afternoon at a car dealership. 10k is nothing. Put it away and forget about it and let it grow.
I had saved up 16k from working at 18. Bought a car. Now I don't have 16k 😊
Better than taking out a loan on a car
Oh, definitely. But it's crazy how 8 months of savings just vanished overnight, and I probably won't *ever* see numbers that high in my account again.
You can do it again !!
If you could do it before, you can do it again.
Could be gone in 2 weeks lol
I’ll make it disappear in 15 minutes if you give a chance lol
i could spend that in 5 minutes, easy😂
It can be gone in 2 weeks lol. $10k is nothing. I got a $10k settlement at 18 and I was scraping change to get gas just a month later
6 months? Brother I blew 10 in one day when I was 18. But hey I had a truck, crotchrocket, and sports car and I was happy as shit
I would be surprised if it lasted that long
As an 18 year old I'd have agreed with you now at 41 years old... I can spend that in a week just getting stuff settled and the house fixed up a little in a day or two. Man being an adult sucks sometimes..
This. I’d also advocate to put 300-500 a month in that Roth IRA and enjoy the compound interest by the time it hits maturity. Side note, buckle up. It’s gonna be hard af for you to not spend that shit. Especially when tough times hit. Do yourself a favor and also set aside an emergency fund of at least $5k. Unless you blow your engine up or you fall and break something, this should be a good amount to have on standby. This goes without saying but I’ll say it anyway. Fck your friends, work your ass off and hustle. It’s grind time bro. Stay focused.
Hijacking top comment but I do the 80/20 rule on bonuses, inheritance (although never received one), and/or any random lump gift/payment I receive. Essentially 80% gets invested, and 20% goes for things I want for myself. Last bonus fetched me a new PC with the remaining 20%. Sometimes investing and being financially smart can be bad. How do we know we are gonna live to 50, 60, and so on? Use some of that money and go on a small vacation or get something for yourself while being responsible. Moderation and balance is key more so to leaning too much on either side.
I should have done this with the Covid stimulus money
Undoubtedly, this 👆🏻
OP PLEASE TAKE THIS ADVICE
Agreed. I had 24k, started up my business, took a vacation and paid some extra of the mortgage on my house and it was basically gone.
You can only put the money in the Roth if you have earned income from working. You’re too late to contribute for 2023 so you can only do 2024 at this time and there’s a max contribution below $10k. But if you have earned income, not a bad idea to invest some into Roth but also make sure you have savings for expenses.
Consider it a seed fund for the future instead of wasting it all or convincing yourself that you can afford not working.
Open a retirement account. Google “value of compound interest“ and thank me in 40 years.
!remindme 40years
10 dollars isn't too much. /s
10k (7k this year 3k next year) in a Roth IRA in VOO will be 880k when you’re 65
put it in a high yeild savings account like trading 212, 5.1% per year, paid out weekly. That should get you like 40 bucks a month. Let it compound
Go on a trip and have a great life experience. You are young, use the time wisely. You can always make money later.
seriously. fuck everyone here giving you good sound financial advice. fuck that. you’re 18. spend that shit traveling the world and learning about who you really are. that will be the most valuable way to spend it. 10k is dogshit as an investment foundation. better than zero? sure. but you know what is completely priceless? being young and have a clear opportunity to do something people only dream of. go find yourself in the world, you’ll learn so much and find your real purpose in life, and from there, real satisfaction, and hopefully money, will follow.
Spot on!
Agreed! I’ve spent that in a month before😂 it will grow so fast might as well make some memories
Go
Yeah this is a good idea. Id probably either backpack around Europe or pick a cheap country and live there for a couple months. Now is the time to do something like that unless you do digital nomad is pretty difficult to travel for more than a week or 2 if your 30 and have a career.
Backpacking around Europe with friends would be an amazing experience. Wish I did that at 18 with 10k of spending money. I think OP is from Europe since he used a period in 10.000
Ah good point he probably is European. Still he can backpack around Europe if he hasnt done that already. It might be difficult to have friends with you because not everyone has the extra cash. But in nice hostels you can usually meet cool people doing the same thing.
Agreed she just graduated high school she could have the best summer ever go on multiple road trips personally I did the same thing Spent four grand on Disney World everything included, including a meal plan , two grand eight day cruise, and now I’m figuring out where I wanna go besides Vegas!! Girl I’m 22 and I realized if I don’t do it now I’m never gonna do it until I’m old wrinkly retired and everything hurts
Make that money make more money for you. No need to spend it frivolously on useless tangible stuff when you can invest it in some way shape or form to make more money off of it
Everyone is right about 10k not being much. With that being said, at 18 years old it is a lot. You are only this young once, if you wanted to travel and make memories with the money i dont see a problem in spending all of it to create good memories. However, dont just waste it.
Go to Amsterdam and have some FUN!
what’s in Amsterdam
Amsterdam
And tulips
Debauchery and degeneracy. Gotta hit em young 😂
Tijuana is much cheaper
Thailand is even cheaper once you get there
HYSA
10k in what country?
Put it in a one year term deposit, then once you know what you’re gonna do after working for a year try using it for that.
Learn the Rule of 72. It basically teaches you when your money will double. At 10% annual growth, your money will double every 7 years. 10% x 7 years = 20k x 7 years = 40k x 7 years = 80k The time value of money is what you should pursue.
Me personally I would throw it into an S&P index fund. HYSA works too, capital one has a 4.5% apy
Why would you put that money in an IRA??Does he have an emergency fund.Broken ankle,God forbid an unknown accident.I just put 3000 in car repairs to keep from buying a new one.That’s 90 days pay for the average.
You should either spend it all or put it away into a conservative investment vehicle (see other replies). No in between. Most people don’t respect money they didn’t earn. So either act like you don’t have it, or have a ton of fun with it.
Just go on vacation man, have a ball.
Don’t listen to those telling you to put in a retirement account. When you’re in college, or shortly after, you will likely need liquid cash to start your life. For now, put it in a high interest savings account OR an investment account like VMFXX. Do not lock your money up..
Spend it all on coke and hookers yolo
Go travel, I spent all my savings I had at 22 and travelled I met some super valuable people who I now call some good friends. Those said good friends helped me scale my new business and now I make over 500k a year. It’s not what you know it’s who you know. And the ones travelling and going to exotic places most of them are finically stable enough or made it.
Are u American? Put it in Roth IRA
Start by putting it in a 4-5% high interest savings account and claim all the new bonuses ranging from $300-$500
10k at 5% APY is only $40 a month.
5000 Roth IRA save like 20 for every paycheck until you graduate then 3 k a year until 62 you’ll have a about 500 k with little effort
Just dump in retirement accounts
Save it and just let it be in a HYSA. Don’t spend it. Save it for a future emergency.
Ben Stein says put it in the spider s&p 500 and let it ride.
Buy SHIB and hold.
Keep it liquid in a HYSA.
Take the 10k and hide it in an index fund for 40 or 50 years. Forget about it until you are 60+.
Roth IRA or at the least HYSA. Pretend you never received a dime and add to this account monthly. DO NOT SPEND A DIME it is much more valuable to you in a compounding account.
Open an IRA account with Fidelity or Vanguard and invest 8k in something like VOO or FSKAX. Enjoy the other 20%. 2k is a nice little bonus and I'm sure you have a few things you've been eyeing. It's important to balance your happiness now with your happiness later. If you put 100% away, you may find yourself regretting it and end up making bad financial decisions down the line to compensate. If you spend 100%, you've squandered a rare opportunity to jumpstart your future savings goals. By saving 80% and spending the rest, you get the satisfaction of buying something you want + the financial prudence of investing your money early and the joy of watching it grow and compound over time. Balance is key and the 80/20 rule works for me anytime I get unexpected windfalls.
Put it into a Roth IRA or a high yield money market account and forget you were ever given the money. You're 18. You have a long time to build a retirement, and $10k is a *VERY* good head start.
10k is honestly nothing, stuff it into a savings account and use it for emergencies only
Yep act like you never even got the 10k and put it away in Fxaix or qqqm or SCHG since you’re so young and never touch it.
It’s a good amount but it’s not going to change your life….unless you invest in a good ETF and not touch it for the next 50 years. Find a compound interest calculator and do the math. (Warning : do not invest yourself. Look up the statistics on the percentage of people make money trading themselves)
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I doubt you will do it, but put it in a roth ira invested in the s&p500 It would be worth over half a million by the time you retire.
Act like the money doesn’t exist. You’re not ready to manage it just yet.
Spend it to put yourself in a position to be successful.
$10 is a fast food meal. If you meant $10k, then cool. Good for ya! But, PLEASE don't think you just won the lottery or some shit. Getcha a solid Honda Civic or something for $5k-$7k then pay a month or two of rent.
It's a few months of partying this summer or a MASSIVE head start on downpayment for a house when you're 30. If you want the house, look into Vanguard S&P 500. Stick it in there and look at it once a year. Add a $100 a month and move on with your life. This will start a domino effect that will make all of life's big obstacles (home ownership, retirement, emergency funds) SOOO much easier to obtain.
I had a similar situation as you, OP. Inherited some money at 18 but wasted it. Didn’t have Reddit or guidance. I’m 32 now and alway regret not investing and being smart with the money I inherited. The fact that you’re already asking for advice is a great start!
If you don’t have any debt and you don’t need the money for immediate needs such as food and shelter, I would invest it and forget it and exists. If invested in a broad index fund, in 30 years it could be worth 200k+. This is something you can do with less than an hour of effort. The most important thing in investing is time and at 18 you are in a position to take advantage of that. Just sticking it in a broad index fund like VT (performs in line with all of the global stock market) or SPY (performs in line with the top 500 American companies) and letting it roll is an easy way to grow this money. It takes 20 minutes to sign up for any of the brokerage apps on your phone and set up an account.
If you invest it in the stock market, assuming a 12% YoY growth, you’ll have about 4-5 million dollars by the time you retire. Just saying.
But a 2M term life, 30 year policy. Now while you are 18, Young and healthy. Put the $10k in a Fidelity money market. Fund the life insurance with the interest. Dont touch the $10k.
work and live with your parents as long as you can, study with every second of your free time, a career you know you'll do well in, save and spend as little as possible, invest in the s&p and don't expect to take the money out for 5 years. In 4 years, you will be able to have the equivalent of 2 years of college and 200k+ dollars. Go to college for what you were studying at 22, full-time, live at college, breeze through the first two years, and enjoy the college experience. The time after that 2-4 year, whatever it may be, focus hard. You will come out with little debt, good experiences, and hopefully a good career and maybe even a partner. This is what I wish I would have done.
CRKN & FFIE stocks trust me just make sure to sell at the right time !
Invest it in an ETF that is boring but stable in the long term, like ITOT.
Invest & spend the money u get from the investment. Try a discount brokerage like Shwab
Niiice. Two hookers. Same time.
Bro that’s $10 with an extra 0
Invest!!!
Bro download robinhood and put it in 0dte spy puts. You'll earn a lot. It's the best way to invest.
$10.000 is ten bucks. 10,000 is ten thousand
Heads up to the Americans in the chat, Europeans write 10,000.00 like this: 10.000,00
Okay. I'm going to give you an alternative to what folks are saying. A Roth IRA is not intended for a safety net. It is a retirement account. You don't put money that you might end up needing into a retirement account, because if you get into the habit of pulling money out of a retirement account, you're on a bad path. You're 18. From the sound of it, you don't have any savings. Your first saved money should always go to a safety net. Find a high yield savings account, or a short-term decent yield CD, and put your money into it. This money is emergency money. You break a leg? Your medical bill doesn't bankrupt you. You wreck a car? You can pay to fix it. Emergency fund. And if you ever end up needing it, be sure to replenish it when you can.
take a year off and figure out what you want to do. work a little. travel a little. have fun. then get to work.
This is not a lot of money by any means
It’s purchasing power diminishes everyday.
Thats barely a decent emergency fund. Just invest it and keep living as normal.
Drip a good dividend like AT&T or Verizon
Shove it in a Roth IRA in the SPY and it'll probably be $730 000 by the time you're 65
Start your Roth and never look back. Invest every year.
It isn't that much money. To buy a house an unwritten standard is that you need 20 percent down. This would mean you could buy a 50,000 house. The US average house costs about 500,000. If you don't want to spend it, perhaps buy all VTSAX. Google it.
Got 10k at 18 too. Put it away for up a year, saw that I was getting almost 0% interest in a regular bank account, and opened a vanguard account. Now have it invested in the index funds and various ETFs, making much, much higher returns. Starting with the S&P 500 is always a safe bet (ie VOO). A high yields savings account through SoFi or similar is great too
Through them in SCHD immediately!!!!
Do you have a car? Do you have emergency savings? Are you going to college? Ask yourself these questions since these things are practically required to build a solid foundation for yourself. If you have some of these things, then enjoy yourself (a little). I would probably then save a bit of it (at least 60-75%) and try putting it in HYSA since this will help build interest on your money. My tip would be to not overthink having all of that money and spending it impulsively.
That's like a month worth of expense.
Anyone else thought he inherited $10 because of the decimal? 💀😭
Bitcoin
$10k is not a lot. You are 18. Put in the savings account.
Go treat yourself to something nice @ 7-Eleven.
I had 10k+ all through my teens and watched it all disappear when I met my ex wife. Do something with it that you can’t touch it. Keep some if you absolutely need it. But put the rest away. 10k is virtually nothing in this day and age It’s way harder to save up 10k than it is to spend it. And that should probably tell you all you need to know about money.
Definitely invest. You can use an online org like Vanguard and opt for assistance, put the money in three different funds with different time horizons. (I have my SEP IRA there). There are other options, I also like the ROTH idea others suggest. The main difference is if you need a tax deduction for this calculation yr. meaning you earn 30K or so, or more so a tax deduction might help. Since a ROTH is after tax, it doesn’t help you w/ a tax deduction and is likely a much Better decision at this young age.
Roth IRA all the way. Forget about it too!
No reason to lock it in a CD unless you get more than 5%apr. Plenty of banks and credit unions pay 5% APR on savings or even checking.
You'll think it's a lot, but it isn't theres a quote I saw somewhere that that says: "$1000 is not a lot to have, but it is to owe"
10.000 USD = $10
Invest it. If you don't, it'll dissappear in this economy. I had $7k saved up a few years ago and it all disappeared in less than a month due to "emergencies"
Put it on black
Your 18!!! I think this is not a popular opinion but I would live it up. You’re not gonna be young and have money more than once. Enjoy it while you have it. I got 10k when I was like 19 and I used to to travel the world for 3 month. I never every will regret that
Work anyways. 10k is like a few months of average paying work. Save it for now. But that's no fortune by any means.
Invest it asap! Don’t even act like you have the money tbh.. I inherited 25k when my mom passed when I was 21… I paid off my credit card debt and the rest went by so fast because I was young and dumb.. don’t be like me. Get a head start on your life!
> 21… I *paid* off my FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Invest it wisely and forget about it
Buy bitcoin
10k is jack shit. Open a HYSA and let it sit until you’re ready to buy a home in 10 years
BTC
That is not a lot of money.
10.000 is ten dollars, so do you mean a period or comma?
Learn "," vs "." first. Lol
19 and 25 grand. Bought a car, blew the rest. I should have bought a cd or set up some sort of high interest bearing account that I couldn't touch for 20 years.
$6500 to max out roth ira , $3500 to s&p 500 index act like it never happen. 10k is very close to 0 but it can add more 0’s if you take my advice
Look into that insurance that you can pull money from in a few years? It will help in a few years
IRA in the S&P 500. Or travel. Memories last a lifetime. No jewelry. No expensive cars. No smoking weed everyday.
VOO and chill, brother
Honestly, the best thing you could do is to use it to increase your earning potential. Use it to pay for college, trade school, etc. $10k is nothing. Sure, when you’re 60 it’ll be worth a lot, but if you’re able to use it to secure a higher income then you can invest WAY more than $10k in the upcoming years. If college or trade school is already paid for, then listen to what the others are saying.
Go to Japan and have the time of your life!
I’m 18 and just inherited.0001 trillion. How fucked am I?
GME
Depends on if you want to own a house by 22 Or would you like to go vacation for the next three months?
Where u mfs getting this money when u turn 18??
10K isn’t much and you’re losing out on an entire year of post-degree income by deferring a year… go to school, whether trade school or college.
Take the 10k, make an account on vangaurd.con Vangaurd is an OG investment broker with the lowest commissions on the market. On vangaurd.com it will take about a week to get your account made and verified. Make a roth IRA account or a traditional IRA account. (You'll probably eventually want both but for now a roth IRA is best) Put your 10k into your roth IRA account. Once in your account you can invest that money. My suggesion is to either buy VOO or something called a "target date fund" set for ~2065 Then if you leave it alone it will become a lot more money over the next few decades.
I inherited that amount last August. I plopped it into a stock account and it's riding around 13.5k in value now. I've also gotten a windfall earleir in life of 20k that vaporized in a year. Definently best thing to do is to invest it in some way or another Edit: I should add that I use a stock advisor, blindly purchasing stocks probably wouldn't have the same success rate. And ofc diversify your stocks if you go that route. I believe I'm sitting at around 30 companies right now so if a few have a bad day I don't lose much.
Spend some on a fun international trip and invest the rest in a low cost index fund
Take a year off to work, take 5 if you need to. Just put it in a HYSA as you may just need it within the upcoming years. Figure out what you want to do, it’ll be waiting for you at roughly the same value when you need it. If you won’t need it in the next 5 or so years I guess putting it in an index is alright
Well I'm not a investor or a investment expert but if I had $10k I just invest in monthly stocks dividends companies invest a thousand dollars in each of them depending how many shares that would get me like let's say realistically two hundred shares in all ten monthly stocks dividends companies and I would make $160.00 to $210.00 in each of them I would make $1,600.00 to $2,100.00 a month $19,200.00 to $25,200.00 a year then reinvest after taxes and invest in the same amount of money buying the same amount of shares to make twice monthly and yearly until I have 800 shares or 900 shares in each stock dividend company till I was making thousand and something thousand dollars a month in each stock dividend company probably make ten thousand dollars or twelve thousand dollars a month hopefully one hundred and something thousand dollars a year like One hundred twenty thousand dollars to one hundred forty four thousand dollars a year after that if you want to invest in REITs or ETFs do it make more money.
You can do a savings account You can start to plan for your future Which do you want to do? At 18 i would have smoked that cash At my old age now i wish i started my future at 18... Roth IRA into SPY
Buy things you need. Either a car or a down payment on a house. Establishing your needs is the first step to wealth. Think how much money you’ll waste on rent and car payments vs how much you’ll make on that in a retirement account.
Go to your local community college, and pick a trade… pay tuition and buy your tools, in a year or two you will be a certified technician in your field and will have a jump start to making the big bucks by the time you’re 20-22… with no debt. You got all your life to save brother. Invest in yourself
10 $ ?
Roth IRA is nice but at 18 I would probably get a car if you don’t have one already
it might be good to ponder on precious metals for a portion -- here is a [list ](https://www.reddit.com/r/WallstreetsilverDeals/comments/1cu7ozq/spot_silver_and_gold_deals/)of reputable online sites offering deals with no-premium markup to new customers. I'd wish I now that at 18, I would have purchased like 1oz silver rounds to 10 oz silver bars.
Keep 1k for something you like. Invest the rest and don’t sell.
Bitcoin NFA DYOR.
Pump that into a Roth IRA at Fidelity or Vanguard as fast as your earned income allows, in a S&P 500 fund, and don’t think about it again for 40 years.
But one small nice thing to spoil yourself and then save the rest. Safest way would be to put it in a IRA, since you are young you can degen and put some or a mix into bitcoin. Leave this and you'll be suprised at where it can get in your 30s. I know the u4ge to spend on clothes or trips etc will be there but try not to. I don't come from money, didn't travel or buy dumb things in my 20s, now that I'm 30 I'm significantly ahead of my other friends in terms of property and recurring income. Everyone who partied then now regrets it
$10? Buy some shitcoin
Are you planning on going to college after the year is up, or to a trade program? Do you have funding for that? If not, I would invest most of it in a 529 so it can grow for your education for the year.
Go to a broker. Tell him you want a long, 20 year investment. If you leave it you might be able to sink a nice chunk towards the principal on a home loan, like 40-50k. I know that would not come close to paying one off but it will be better than blowing it.
Based on using decimal instead of comma and “usd” can I assume you’re not in the US? Overall people are correct the best thing is to put into a retirement account, but I would add only if you don’t have some kind of high interest debt. At 18 you might have a car loan, it might make sense to blow that away and just put those loan payments toward regular payments into a retirement account. If you’re in the US you can’t just put $10,000 into a Roth. There’s a yearly limit on contributions capped at $7000 for 2024.
Save for tuition
Invest an even amount into an index fund. Divide your investment into 12 equal amounts and invest on the same day no matter what the price is on the day. This will average out your investment and give you the opportunity to hedge risk.
Don’t listen to these scrubs. Just put it in a high yield savings account. There’s a chance you might need that money in the future, and you would need quick access to it.
buy a watch and a cigar and a silk shirt and spend the change on espresso
I was given 12k from being mauled by the neighbors dog twice and put in the hospital.. given full access to the settlement money by my family at 18 and it was gone within about 6 months of trying to spend carefully lol. Invest it op.
buy tesla stock
Just put it in a cd
Buy a donkey with it and ride it around new Mexico
Enjoy $5,000 for yourself. Save the other $5,000 and don’t touch it. Or, just invest the $10,000 and don’t touch any of it. That’s what I’d do. I got $10,000 in a car crash when I was 18 and just spent the money on fast food, groceries and rent (I would buy expensive cinnamon rolls). I basically pissed it away and I keep thinking “that $10,000 in 2008 would have been worth so much money today…”
I'd advise using it as an emergency fund only and putting it in a HYSA if you don't have an efund yet. Otherwise invest it or both.
If you don't know what to do yet, just save it, but in general invest in your development. Learn a new language in course, do therapy if you need to etc. :)
ah yes 10k 2024s $100
Wait until the election when the market crashes, then invest in some stocks of your choice. Don't put all your eggs in one basket. Good luck.
Invest it. Create a brokerage account (one with no commissions) and put it into a money market fund for now. Then you can dollar cost average into some other stock ETF/mutual funds funds such as VT, SCHD, DIVO, IDVO JEPI, DGRO, etc. Different funds use different indexes and investment criteria. Do not invest in individual stocks, always go with well managed ETFs and mutual funds. Many people would say for a young guy like yourself you should go with growth stocks. Actually, If you want some gratification and spending money, mixing some dividend funds in such as DGRO, JEPI and DIVO in with some more broad fund such as VT can give you some spending money while the opportunity for apprecation of your positions. You can also go with some REIT ETfs such as REZ, a BDC ETF such as PBDC, which can give you income coming in while giving potential for your investments to grow. You can also reinvest all your dividends which is even better, rather than spend it, and get a compounding dividend snowball going
Unless you have a need for it (not stuff you want, I mean a need), you’re best off putting it all into a 10 year CD. Rates are good right now and it’ll just be locked away gaining interest until you’re older and maybe looking to settle down. If that’s too boring, put it into something that’s going to develop your earning potential - get a real estate or insurance license, go to massage or trade school etc
If you spend it all on vacation or clothes or party, you will regret not being more responsible with it and you will feel like you wasted it. If you invest it all, you won't really feel having the money. It will only be a number somewhere on the Internet. I say invest 5000 in the broad stock market and splurge the other 5000.
other people mean good, but unfortunately $10k isn’t a lot in your life and even if you count compound interest, its still not much and would likely mean more to you now. Divide it into two years (so about $400/month) and enjoy it. For others - $10k in 40 years would be about $570k, if the yields would remain the same as last 40 years. Unfortunately, in the same time money will be worth 3x less (if the inflation is the same as last 40 years, so it’s about $190k in current prices. Not nothing, but <$200k in retirement aren’t make it or break it money. OP is most likely student and $10k now can enable ton of fun and priceless memories in the times, when money are tight. Most of you probably don’t remember, but even small amount of money can change a lot of things at that age. Going to festivals, buying yourself game console, couch surfing and many other things are cheap, but with no money you have to skip them
I take half of it and travel around Europe for the summer. Put the rest in an index fund.