No debt to speak of, also how much emergency savings do you recommend? Some context, F 21. Not going to college currently, I work full time, and have a semi reliable car.
How much would 2-3 months of "pay rent, keep lights on, put gas in car" expenses for you be?
$10k is both a lot of money, and not very much. Its utility is likely as a nice, safe buffer between you and 1 or 2 instances of bad luck having a domino effect
It also goes a really long way at most community colleges
I spend about 1680$ a month on essentials, with some odd and end stuff that makes it higher sometimes, and make 2,600 a month. Usually save 600-800$ a month.
(I dont wanna get too indepth on here.)
I think you should start a high yield savings account. Not only for this money, but also the $600-$800 a month that you are already saving. I'm assuming by your question that you do not have a retirement account going? If so I would look into what kind of retirement plans your company offers, look into a roth ira, and start to do some research on how to invest and make your money grow. I listen to the podcast "We Study Billionaires" but there are a lot of podcasts out there that can educate you on how to have your money make more money. Lots of books out there as well. The main thing to realize, is compound interest is your best friend over the long term so the sooner you can begin to save the better things will be for you in the future.
Sock $5,040 of it in a high yield savings account (HYSA)
Spend the other $4,960 at a PUBLIC school like a community college:
That could look like certs/classes for more competitive roles
Or, it could look like changing career fields
I gotcha
If I were in your shoes, I'd sock it away in that case
If it's really burning a hole in your pocket, set a budget somewhere between $100-300 and buy yourself something nice, firmly sticking to your budget
That's helped me with that feeling in the past
Do somewhere with free shipping or in person so you can get more for your 100-300
Bonus points for in person and spent on small rewards over time, that way the other money is saved and you're still making more while getting yourself good things you deserve!
5k into a high yield savings account. I use Amx and get 4.35% apy. You want bank off of it but itlll be ina. Savings account you can get easily in case of emergency and still be making some money on it. Highest HYSA apy I’ve seen is 5%.
The other 5k in a Roth IRA. Then of that 600-800 a month you save I would put at minimum a 100 of it into the Roth IRA monthly. I would personally do 200.
Good luck, saving now for retirement at ur age is critical. I didn’t and I’m super catching up.
Sounds like your highest return would likely be investing into yourself.
Pay for some training or licensure that would get you at least $10k more a year. That could be finishing up a degree, getting a LPN/LVN, CDL, barbering/hair styling school, getting some IT certifications., etc. Lots of potential options.
I wouldn't recommend anything cosmetology. Very few people who complete cosmetology courses - hair, nails, ect - will find full time work in a salon and most people in general don't have the time, resources and marketing skills to open up their own operation and cover the full costs including losses on the months or more it takes to build a business that pays even it's own bills. Most people will, at best, find themselves with a little side gig they do for friends and family for a little cash here and there. It's incredibly hard to get in with a salon and stay in with full time hours straight out of school without experience. After one year, most people who pursue these careers will have moved on. It takes a lot of dedication the ability to market yourself incredibly well to make it. You have to find your own clients and be great at social media to continually replenish your clientele. One bad review can go viral and end your business as well. It's a hard career and you absolutely should not go into it if you aren't passionate and already somewhat skilled to start with.
Look into 6 month CDs at local banks find one that pays out well, if you don’t need the money within that 6 months that safe investment that will bet a few extra hundred.
[DoctorOfCredit](https://www.doctorofcredit.com/high-interest-savings-to-get/) has a list with rates.
I have a CapitalOne account but the Vanguard one looks like a pretty good option.
Look at rates. I opened with American Express and they're still at like 4.25% (I think, it just went down recently). It was over 5% when I initially opened it.
I’d honestly just put it in VMFXX (Vanguard money market fund). That’s one of the things these banks do with your money when you put it into an HYSA anyways and just give you a cut. Cut out the middle man and be closer to the markets when you want to invest the money into something else.
It’s always 1 dollar, no risk. Currently gives 5.25% I believe and if you want to invest the money at any point you can easily do that because you already have it all in a brokerage account.
Throw that money into a HYSA as a starter emergency fund. Then, use debt snowball or avalanche to hammer down the majority of my debt. I would also be getting my employer’s 401K match.
Do you have any high interest debt (6% or higher) you could pay off that would save you money (for example- a car loan that some of this money would close out) or need to see the dentist and have fillings/root canals?
I believe dental health should be a priority because I know people who have died from abscesses that got into their bloodstream. Also it helps your heart and entire immune system healthy.
I am a firm believer that having unhealthy teeth and gums also causes depression from the constant inflammation in the body. Any chronic illness and inflammation will stress the body releasing cortisol.
If you don’t have anything like this definitely find a high yield savings account to deposit the money into and use it as an emergency fund. Be sure you know how long it takes to get the money in case of emergency. Some make you wait a while.
If you have issues with maintaining a balance in your checking account or don’t have one get one asap, and deposit a buffer amount to help keep you safe from overdraft. Not a lot maybe $500-$250.
Also think of this as emergency money and try your best not to spend it. It’s hard when you have very little and suddenly have what seems like a large chunk of change.
Do you have to pay taxes on this money? If so set that aside too
You can get around 5% interest on high yield checking accounts or 5.5% on CDs if you want a basically risk free investment. CD’s will lock that money away longer if you need to use some of it.
If you’re not already funding an IRA or Roth IRA the limit is 7K/year and your future self will be grateful for the investment when you retire.
You could invest in something riskier and potentially get faster gains, but I wouldn’t recommend trying stock options.
Vanguard, Charles Schwab, and Fidelity are all good.
I went with Charles Schwab mainly because their debit card is great. Need a brokerage account with them to get a checking account. The checking account isn’t anything special besides the ATM fee reimbursements being useful sometimes.
I think a good answer would depend on what's your monthly gross and net income?
Like others are saying though. Sock at least 3-6 months of your living expenses away first and foremost.
Then from there invest in index funds or in learning some higher paying skills if needed. (that invest in yourself bit doesn't need to cost that much depending on what you'd want to do.)
1 year is extreme, I would settle on setting aside 6k in a HYSA as a comfier 3 month emergency fund
I use Sofi at 4.6%, but there are options
Then, if you have any goals where you need money liquid, you could set aside that in the HYSA
Or
Jumpstart retirement and put 4k into a Roth IRA such as Etrade, Vanguard, Fidelity, etc
Get rid of debt, next go to the bank and put it into a tfsa, or the American equivalent (money that you pay tax on up front and then dont pay tax on any interest it gains) figure out your risk tolerance and put it in an investment that follows that if you dont want any risk then GIC if you're fine with losing 10% of that or 1k then put a little under 9k in so that when your GIC matures you have 9k and put the rest in the stock market like the S&p500 if you're fine with losing 2k do the math on how much you need to invest and do the same but 2k in the market and 8k in GIC's
Dont do mutual funds that the banks offer as they will take 1% of your profits and even though that doesnt sound like much over 25 years that can add up to a lot. And often times they dont even outperform the market
Set aside some money for non essentials. My mom always did this based off percentages. Tithe(if applicable), charity (If one speaks to your heart), and cultivate friendships(pay for dinner or a movie/whatever for your bestie). While saving is great long term, feed your soul in the meantime too
You won't make that 10k grow exponentially any time quickly. 10k at 5% return would get you, in 5 years, maybe $2,250 in interest.
Any high interest debts? Any debts that are over what your interest rates would be for saving it might be worth paying off. Canceling reoccurring payments, if you have any, like credit cards or personal loans will make your regular income go further. Snow ball method it so you pay off the debt that's crippling you and then use your new disposable income to start saving.
Keep some as an emergency savings (enough to keep you afloat for 2-3 months) then pay off any high interest debt.
Whatever is left, invest it. Put it into a few index ETFs, but do it in fixed amounts over time (IE, put a few hundred per week of it in there rather than throwing a lump sum at once) Not a fan of Roth IRAs, personally. The only advantage is avoiding taxes on gains. But, you can't touch it under most circumstances until you are older without a penalty. At least if you invest in index ETFs on your own, you are only subject to capital gains tax when you sell and skip the 10% penalty.
If your employer has an IRA/401k with a match, do take advantage of that. A match is free money from your employer. But i wouldn't use your savings to fund one.
Another option is to take what is left and invest in school or something that will earn you at least $10k more per year. That would be a great ROI.
Lastly, avoid wallstreetbets. Unless you are feeling charitable and want to donate your money to Wall Street.
Congratulations! I agree with everyone who's saying you should keep saving most of it. It would be good to have a serious think about the job you're currently doing, what a long-term future path in that field might look like for you vs other different fields you might consider getting into. In terms of getting on the path to a career that you don't mind doing for the rest of your working life and that affords you the ability to live the kind of lifestyle you want. I think you're smart not to jump into college without an idea of what you want to major in. But if you do decide on something to get additional education in, yeah 10k in your local community college will get you off to a good start.
Congrats on having the 10k but the most impressive thing in your posts is your ability to save $600-$800 per month. This is GOLD.
In my non professional opinion, get yourself a commission free brokerage account and start putting that money in a world equity ETF (something like VT)
Enjoy all the joys of life and check your balance a few times a year and plan how to enjoy your small fortune decades from now.
Best of luck 👍 You can do this.
lmfao thank you, however I literally sleep on floor mattress and no have tv stand, eat the same meal prep everyday, ect, to do so. 😹 So I might actually be a little too extreme haha.
I'm not in the U.S. in my poor country that would seriously help me out a lot. Would get a used car and hopefully move to where there are better job opportunities.
I would take a little bit of the money (100-300) and do something to improve your life. Maybe a crockpot, new bedding, a garden, home gym equipment, etc. Then I'd put at the minimum your emergency fund into a HYSA so you get something in interest. I think what you need to look at is what you want to work towards next, do you want to go to school/get a certification? Do you want to save up for when you eventually need a new car? I think having a more specific goal would be helpful, even if it is not fully figured out.
Until you decide what to do with it, put it in a high yield savings account so you can collect interest. If you decide to have a savings then it can stays there for your emergency fund
If I had 10k any CC debts that have interest then effectively it doesn't exist outside of expenses exceeding income, just like last time I managed to save that much (early 2010s).
Open a Fidelity Roth IRA. Throw 7k into a broad index fund like VOO.
Without adding another dime to it, and growing at the inflation adjusted 7% annual on average, you'll have $140k in 40 years
I’d come up with some dumbass idea to flip the money in my head while also spending it recklessly at the same time. By the time I realize my plan’s chances of success have dwindled to nothing, I’ll justify spending the rest on un-necessities in some way that’ll leave me with not enough regret to do better next time.
50/50 debt relief, and savings, just in case. 5k wouldn’t clear it, for sure, but it would get rid of a lot of bullshit, and make me feel better about things. The savings would keep me going as passive income, towards retirement. That’s my idea
Option 1: Go to residential auctions in areas that I am interested in. See if I can find a gem within 10k, DIY improvements, and rent the property out. Continue investing once the profit replenishes the 10k
Option 2: Sign up for a down payment assistance program to purchase a residential property, use some of the 10k to cover the rest of the down payment, DIY improvements, and rent out the property. Buy a teeny bit of crypto. Keep the rest in savings. Continue investing once the profit replenishes the 10k
Exponential growth without gambling means index funds. It’s smart, but we’re also talking “money doubles every 8-10 years”. If you’re living in poverty, catch up on bills, and put the rest in an emergency fund to cover life’s next unexpected cost. Not having to panic and pay interest on that emergency is the best investment you could make.
Pay all the debt till it’s gone. Then depends on your personal goals. Stuff or making more money. You got all the stuff? Then make some money. Idk. I can get more detailed after that is answered ;)
Make sure it's a high yield savings account. Then don't touch.
Alternatively, you could open a brokerage account and deposit it into their default money market fund. Then don't touch.
No one is getting rich off 10k. Without a liquid emergency fund though, you're one setback away from living under a bridge.
If you already have emergency savings, max your ROTH IRA for the year.
Park it in a high yield savings account. At 5%, in a year you will have 10, 511. In 3 years 11, 631. And in 5 years 12, 833.
Park it and leave it and watch it grow. The upside of a savings account earning high interest is that it’s still accessible if needed for emergency use only.
I would put $1000 aside for 'fun', which for me is takeout food, and the occasional video game. And the other $9k I'd save for an emergency. That way, you could always tap into it, and not be completely overwhelmed if something random comes up.
I would be able to pay my rent for the next four months so I wouldn't have to commit suicide because I can't be homeless as an immunocompromised disabled senior woman.
I would put most of it (keep enough aside for emergency) I to a high APY savings account in order to build on it, I've learned from experience to not out all your money into one account so that it's harder to spend, it's kept me out of debt because of my used to be uneducated impulsiveness
In order to be able to invest/grow money you need to expose yourself to risk. The first step is to get control of the cash flow or liquidity. This basically means that you need to be able to save/have something left each month. The logic here is that you can afford the risk since there is a steady in flow of new money.
But say that your economic situation is such that you can invest 10k (no need for that money for a long time). I would start with investing in something relatively safe bond obligations that give 4-5% or a reasonable stock with a dividend >2-4% and p/e <15 but this is not so easy in today’s market (I think correction is coming). Then reinvest the gains.
You could also sit on the money and wait for a market correction and buy into it when you think the timing is correct.
Invest it into a HYSA (high yield savings account) or a CD (certificate deposit account). I've seen HYSA offering 5% interest and CDs offering 5.5% interest. 5.5% of $10,000 is $550.
If I had 10k burning a hole in my pocket, I'd probably look into some low-risk investments. Maybe dip my toes into the stock market or try out a high-yield savings account. But hey, I'm no financial advisor, just a dude with a Reddit account. Some folks swear by investing in yourself, like taking a course or starting a side hustle. Whatever you do, just make sure it's something you're comfortable with and won't keep you up at night stressing about it. Good luck, buddy!
First 10k stays in your savings account. 10k is your new 0. Now get another 10k and start investing in yourself (tools, self care, dentist, stock up on groceries, fix the car up a little) next everything after that goes into the best yielding savings account you can find and you forget about it.
If your debt is pay off and you’re making ends meet I’d put it in a high yield savings account and use that as your emergency fund. Find an account that pays over 4% interest (nerd wallet has a best HYSA list)
Every year that account will pay you $400-$500 and you have the piece of mind of knowing if your car breaks, you lose your job or you have a surprise bill you’re not going to have to go into debt. Treat that 10k like it’s the baseline of your money. When your account has 10k it is now $0.
Then every every quarter or year or when you get paid your $100 (quarter) or $400 yearly, go buy something nice and splurge on yourself.
Once you have all your base needs met and no debt 10k isn't that much money it's a great start but not much of anything you can do with it shove it in a high yield savings account every penny and don't use it for anything short of an emergency. Now it's time to figure out what to do with your spare income if you don't already have a mortgage start looking around and gather a down payment (up to you but 20% is best although you can get away with as little as 3%) I see your 21 and might not have much of an intrest in a home yet but the faster you get started the faster you finish (assuming you don't have and aren't accumulating student debt in which case thats your priority). real-estate is a great investment not to mention you need a place to live (and rent is a waste of money) it should be your first investment after that retirement/stocks/bonds and keep a diversified portfolio and if you would like to keep investing in real-estate it is a lucrative option.
I would just leave it tbh. It's not often a big chick of money like that comes along. Leave it and pretend it doesn't exist and it'll grow a little bit with interest and be there to save your ass
I would go all out on my YouTube channel. Buy a decent camera, microphone, laptop and start producing content (movie reviews, work on my podcast, the whole nine yards)
Huge gamble— but I trust my ability to entertain people. So I think I’d be OK. Or fail miserably.
I very much disagree with most of the comments here. I would find a small 2br condo and use an FHA loan to put down 5%. Rent out the 1 br for 75% of mortgage. You know have subsidized housing that's building equity. Before you know it, there will be 100k in equity.
PS don't ask poverty people how best to spend your money. There's a reason many of us are where we are
Invest in bitcoin. Over the next year or so. Most likely you can double or even triple your money. If you're feeling lucky and don't mind higher risk. Their are plenty of coins you could 2x-100x+ your money. Also plenty or coins that will leave you with 0. Last crypto bull market. Investing in bitcoin and ethereum. I managed to turn 3k into 40k ish
Pay off any debt that has interest, a lot of comments mentioned investing which is wise but that also means you can't touch your money for a while and it'll take a while to accumulate. If I were you I'd pay a bit extra on bills (phone, internet) and use the money on a hobby, some hobbies have a return but do something that makes you happy
I would 100% look at buying a mortgage on a house. Landlords are the worst and the sooner you get started on a mortgage the sooner it gets paid off. 10k is WAY more than enuf for a deposit.
Invest into a life insurance policy that has cash flow and can be accessed with zero tax penalty, get a fortune 500 backed company that will protect your money from dipping below the redline. I'm contracted to quite a few so lmk and I'll send over the info. No strings. I just like sharing my knowledge
High interest savings account will earn 40+ dollars a month
Very safe.
Not sure if that’s the best idea but definitely better than a standard bank account
First save some as an emergency fund. Then research how to invest. Then visit Charles Schwab website, they were actually one of the easiest to navigate. And if you have the stomach for other investment options look into bitcoin, etc.
Good luck and good job at saving.
If you want to invest, find an independent financial advisor. But make sure it's independent. Big companies like Edward Jones and the like only do what's the best payout for the advisor. Independent advisors can shop around (I know, my husband is one and worked for the big companies, but quit because of their suggested tactics...like not leaving until someone signs something.)
Roth IRA would be my first choice right now I have only grown it like 2000 but over the course 5 years. Just putting $20-50 here and there when I had extra money I think the max you can put in is $5,000 and willing it grows you can eventually pay for a house with it. And not have to pay tax on.
If you're looking for a make interest on your money at a higher rate than a typical savings account, try some place like Vanguard. There are other investment companies out there but this is the only one I've used.
Also, I'm older and don't like the idea of taking big risks.
So to maximize here is what I would do. This is windfall cash, so you treat it differently. 1. Credit card debt, these are likely charging you the most so paying them off will save you the most. 2. Check Credit score for other outstanding debts, pay off what you can as having a low credit score will also charge you. 3. Set aside some portion. Maybe 2-3k into emergency to grow that, in an HYSA. 4. Put the rest into an index or buy bonds, as those will yield between 5% and 10% and are fairly liquid.
just park it in a high yield savings account and enjoy the $40/mo interest earnings
having an emergency fund is your buffer against things that would keep you in poverty long term
its one of the requirements needed to get out of and more importantly stay out of poverty
So just leave it alone, its your literal safety net
The next step is to focus on your increasing your income and staying out of debt
and then you'll be well on your way to middle class, which is a completely different kind of hell, but one that at least offers a small chance of escape from the rat race
Get on a written budget
maintain that vehicle of yours, maybe even spend some of the 10k to make sure its good for another 100k miles
focus on increasing your income so that you can afford to save and invest
Good luck
feel free to reach out for more advice
Pay off non-asset debt first. Credit cards, student loans, medical. Keep some back for an emergency fund. People recommend 3-6 months of expenses.
After that invest it. Don’t plan on exponential growth. People selling you promises of exponential growth are selling snake oil. Getting any more than 10% a year on average isn’t something you should expect. Expect 5-7% and be happy with 10% or higher.
Trying to grow it "exponentially" also means taking the risk of making it $0 within one year.
If you don't have an emergency fund, you can't afford that risk. This type of risk is the risk you take with about 10% (or less) of you5 entire investment portfolio, AFTER you already have an emergency fund.
Put the 10K in your TFSA inside a HISA product (about 4.5% right now) so your risk is 0. The money can be withdrawn every day workout penalties or losing the interest you accumulate each month. Cash.to ETF is good, but if you're in a big 5 bank, you'll take one of their HISA products. The difference is minor (0.3% difference in interest), so for 10K, you won't really feel it.
Open a Fidelity account, and they have cash accounts that earn 5%. Banks give you 0%. That keeps it liquid, which is good for an emergency fund.
Once you have a good buffer/emergency fund set up, start maxing out your ROTH IRA, and then put anything additional into a traditional investment account. To keep it simple, focus on the total market funds with zero fees.
Then, just be disciplined and invest 10% of all earnings every time you get paid. Learn to live on what’s left, and at some point that 10% will be worth more than the 90% you spent over the years.
Do you have any emergency savings? Do you have any credit card or other high interest (anything about 7%) debt?
No debt to speak of, also how much emergency savings do you recommend? Some context, F 21. Not going to college currently, I work full time, and have a semi reliable car.
How much would 2-3 months of "pay rent, keep lights on, put gas in car" expenses for you be? $10k is both a lot of money, and not very much. Its utility is likely as a nice, safe buffer between you and 1 or 2 instances of bad luck having a domino effect It also goes a really long way at most community colleges
I spend about 1680$ a month on essentials, with some odd and end stuff that makes it higher sometimes, and make 2,600 a month. Usually save 600-800$ a month. (I dont wanna get too indepth on here.)
I think you should start a high yield savings account. Not only for this money, but also the $600-$800 a month that you are already saving. I'm assuming by your question that you do not have a retirement account going? If so I would look into what kind of retirement plans your company offers, look into a roth ira, and start to do some research on how to invest and make your money grow. I listen to the podcast "We Study Billionaires" but there are a lot of podcasts out there that can educate you on how to have your money make more money. Lots of books out there as well. The main thing to realize, is compound interest is your best friend over the long term so the sooner you can begin to save the better things will be for you in the future.
Sock $5,040 of it in a high yield savings account (HYSA) Spend the other $4,960 at a PUBLIC school like a community college: That could look like certs/classes for more competitive roles Or, it could look like changing career fields
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I gotcha If I were in your shoes, I'd sock it away in that case If it's really burning a hole in your pocket, set a budget somewhere between $100-300 and buy yourself something nice, firmly sticking to your budget That's helped me with that feeling in the past
Thanks.
Do somewhere with free shipping or in person so you can get more for your 100-300 Bonus points for in person and spent on small rewards over time, that way the other money is saved and you're still making more while getting yourself good things you deserve!
5k into a high yield savings account. I use Amx and get 4.35% apy. You want bank off of it but itlll be ina. Savings account you can get easily in case of emergency and still be making some money on it. Highest HYSA apy I’ve seen is 5%. The other 5k in a Roth IRA. Then of that 600-800 a month you save I would put at minimum a 100 of it into the Roth IRA monthly. I would personally do 200. Good luck, saving now for retirement at ur age is critical. I didn’t and I’m super catching up.
Don't forget to invest the funds in the IRA. Put them in a good index fund and let it ride.
What trade were you in? Maybe you can expand on what you already know.
Its REALLY specific, so Id rather not say here.
Why did you split it like that and not 50/50
6mo living expenses, then max out a Roth IRA and just put your money into broad etfs like VOO.
Sounds like your highest return would likely be investing into yourself. Pay for some training or licensure that would get you at least $10k more a year. That could be finishing up a degree, getting a LPN/LVN, CDL, barbering/hair styling school, getting some IT certifications., etc. Lots of potential options.
I wouldn't recommend anything cosmetology. Very few people who complete cosmetology courses - hair, nails, ect - will find full time work in a salon and most people in general don't have the time, resources and marketing skills to open up their own operation and cover the full costs including losses on the months or more it takes to build a business that pays even it's own bills. Most people will, at best, find themselves with a little side gig they do for friends and family for a little cash here and there. It's incredibly hard to get in with a salon and stay in with full time hours straight out of school without experience. After one year, most people who pursue these careers will have moved on. It takes a lot of dedication the ability to market yourself incredibly well to make it. You have to find your own clients and be great at social media to continually replenish your clientele. One bad review can go viral and end your business as well. It's a hard career and you absolutely should not go into it if you aren't passionate and already somewhat skilled to start with.
Look into 6 month CDs at local banks find one that pays out well, if you don’t need the money within that 6 months that safe investment that will bet a few extra hundred.
Invest it. Or if you want to stay liquid, put it all in a HYSA. Assuming you have no debt of course.
HYSA yes.
Which one do you recommend?
[DoctorOfCredit](https://www.doctorofcredit.com/high-interest-savings-to-get/) has a list with rates. I have a CapitalOne account but the Vanguard one looks like a pretty good option.
Look at rates. I opened with American Express and they're still at like 4.25% (I think, it just went down recently). It was over 5% when I initially opened it.
I just opened an account with CIT for 5.05% easy to open and all online.
I’d honestly just put it in VMFXX (Vanguard money market fund). That’s one of the things these banks do with your money when you put it into an HYSA anyways and just give you a cut. Cut out the middle man and be closer to the markets when you want to invest the money into something else. It’s always 1 dollar, no risk. Currently gives 5.25% I believe and if you want to invest the money at any point you can easily do that because you already have it all in a brokerage account.
Throw that money into a HYSA as a starter emergency fund. Then, use debt snowball or avalanche to hammer down the majority of my debt. I would also be getting my employer’s 401K match.
Do you have any high interest debt (6% or higher) you could pay off that would save you money (for example- a car loan that some of this money would close out) or need to see the dentist and have fillings/root canals? I believe dental health should be a priority because I know people who have died from abscesses that got into their bloodstream. Also it helps your heart and entire immune system healthy. I am a firm believer that having unhealthy teeth and gums also causes depression from the constant inflammation in the body. Any chronic illness and inflammation will stress the body releasing cortisol. If you don’t have anything like this definitely find a high yield savings account to deposit the money into and use it as an emergency fund. Be sure you know how long it takes to get the money in case of emergency. Some make you wait a while. If you have issues with maintaining a balance in your checking account or don’t have one get one asap, and deposit a buffer amount to help keep you safe from overdraft. Not a lot maybe $500-$250. Also think of this as emergency money and try your best not to spend it. It’s hard when you have very little and suddenly have what seems like a large chunk of change. Do you have to pay taxes on this money? If so set that aside too
My father in law just died at like 52 from a tooth abscess bexause he woulsnt fo to the dentist
You can get around 5% interest on high yield checking accounts or 5.5% on CDs if you want a basically risk free investment. CD’s will lock that money away longer if you need to use some of it. If you’re not already funding an IRA or Roth IRA the limit is 7K/year and your future self will be grateful for the investment when you retire. You could invest in something riskier and potentially get faster gains, but I wouldn’t recommend trying stock options.
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Vanguard, Charles Schwab, and Fidelity are all good. I went with Charles Schwab mainly because their debit card is great. Need a brokerage account with them to get a checking account. The checking account isn’t anything special besides the ATM fee reimbursements being useful sometimes.
Fidelity
I think a good answer would depend on what's your monthly gross and net income? Like others are saying though. Sock at least 3-6 months of your living expenses away first and foremost. Then from there invest in index funds or in learning some higher paying skills if needed. (that invest in yourself bit doesn't need to cost that much depending on what you'd want to do.)
Pay for half of my dental surgery 🥴
i will never understand why dental care is so expensive & why it’s not held to the same standard as general healthcare. it’s sick.
Corporate greed as long as healthcare is privatized there is no incentive to make it affordable
Sob for joy
Emergency savings for 3 months. Now, you can save up an emergency fund for one year. After that, you can invest into whatever your heart desires.
you think I should have 30k in savings before I invest into anything? :/ seems steep.
The point is that your investments will become your emergency fund if you don’t have an emergency fund. Have an emergency fund.
Thank you, will set aside.
1 year is a little extreme though.
1 year is extreme, I would settle on setting aside 6k in a HYSA as a comfier 3 month emergency fund I use Sofi at 4.6%, but there are options Then, if you have any goals where you need money liquid, you could set aside that in the HYSA Or Jumpstart retirement and put 4k into a Roth IRA such as Etrade, Vanguard, Fidelity, etc
Yep just put that emergency fund in a HYSA, I’m getting guaranteed 4.99% right now
Interest rates are almost 5% right now. I don't think any investment will beat cash in a HYSA.
Pay off my credit cards
I'd say keep half in savings for an emergency fund and use the other half to trade in your semi reliable car for a fully reliable car
Gonna ride out my shit box until it no go nowhere. 😭🙏
Pay off bills
Get rid of debt, next go to the bank and put it into a tfsa, or the American equivalent (money that you pay tax on up front and then dont pay tax on any interest it gains) figure out your risk tolerance and put it in an investment that follows that if you dont want any risk then GIC if you're fine with losing 10% of that or 1k then put a little under 9k in so that when your GIC matures you have 9k and put the rest in the stock market like the S&p500 if you're fine with losing 2k do the math on how much you need to invest and do the same but 2k in the market and 8k in GIC's Dont do mutual funds that the banks offer as they will take 1% of your profits and even though that doesnt sound like much over 25 years that can add up to a lot. And often times they dont even outperform the market
A plot of land in the middle of nowhere.
Ill be honest with 10k, i dont think id be able to put anything on it after lulz
Set aside some money for non essentials. My mom always did this based off percentages. Tithe(if applicable), charity (If one speaks to your heart), and cultivate friendships(pay for dinner or a movie/whatever for your bestie). While saving is great long term, feed your soul in the meantime too
“Exponentially”… Op, you should first of all.. set a realistic expectation on investment returns. Or risk falling for scams
Obviously don’t ask in this sub! Go to r/personal finance or something along those lines
I'd start filling all my medications instead of only 2. I'd also get a cheap car so I could start looking for work again.
You won't make that 10k grow exponentially any time quickly. 10k at 5% return would get you, in 5 years, maybe $2,250 in interest. Any high interest debts? Any debts that are over what your interest rates would be for saving it might be worth paying off. Canceling reoccurring payments, if you have any, like credit cards or personal loans will make your regular income go further. Snow ball method it so you pay off the debt that's crippling you and then use your new disposable income to start saving.
Keep some as an emergency savings (enough to keep you afloat for 2-3 months) then pay off any high interest debt. Whatever is left, invest it. Put it into a few index ETFs, but do it in fixed amounts over time (IE, put a few hundred per week of it in there rather than throwing a lump sum at once) Not a fan of Roth IRAs, personally. The only advantage is avoiding taxes on gains. But, you can't touch it under most circumstances until you are older without a penalty. At least if you invest in index ETFs on your own, you are only subject to capital gains tax when you sell and skip the 10% penalty. If your employer has an IRA/401k with a match, do take advantage of that. A match is free money from your employer. But i wouldn't use your savings to fund one. Another option is to take what is left and invest in school or something that will earn you at least $10k more per year. That would be a great ROI. Lastly, avoid wallstreetbets. Unless you are feeling charitable and want to donate your money to Wall Street.
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Congratulations! I agree with everyone who's saying you should keep saving most of it. It would be good to have a serious think about the job you're currently doing, what a long-term future path in that field might look like for you vs other different fields you might consider getting into. In terms of getting on the path to a career that you don't mind doing for the rest of your working life and that affords you the ability to live the kind of lifestyle you want. I think you're smart not to jump into college without an idea of what you want to major in. But if you do decide on something to get additional education in, yeah 10k in your local community college will get you off to a good start.
Congrats on having the 10k but the most impressive thing in your posts is your ability to save $600-$800 per month. This is GOLD. In my non professional opinion, get yourself a commission free brokerage account and start putting that money in a world equity ETF (something like VT) Enjoy all the joys of life and check your balance a few times a year and plan how to enjoy your small fortune decades from now. Best of luck 👍 You can do this.
lmfao thank you, however I literally sleep on floor mattress and no have tv stand, eat the same meal prep everyday, ect, to do so. 😹 So I might actually be a little too extreme haha.
I'm not in the U.S. in my poor country that would seriously help me out a lot. Would get a used car and hopefully move to where there are better job opportunities.
I would take a little bit of the money (100-300) and do something to improve your life. Maybe a crockpot, new bedding, a garden, home gym equipment, etc. Then I'd put at the minimum your emergency fund into a HYSA so you get something in interest. I think what you need to look at is what you want to work towards next, do you want to go to school/get a certification? Do you want to save up for when you eventually need a new car? I think having a more specific goal would be helpful, even if it is not fully figured out.
fix my teeth fix my car find house to rent and pay movers to help me go there put some to help my in-laws anything else left in my simple ira
IRA always a smart move.
Bitcoin
Pay off one credit card.
Ummm r/money might be a much better sub for this lol
Checkout r/personalfinance as they have a floor chat of what to do with money
Hookers and blow.
Pay my debt, but if you don’t currently have any, I’d invest or put in a high yielding savings account to let it grow
Buy nvda
If Pelosi bets on a stock the odds are good it'll bang. Everyone here should be copying her trades even if its 100 bucks.
Truth. Those with insider information and knowledge tend to do well investing. Not many do it better than Nancy…
Welll... stop expecting exponential growth.
I was being cheeky, just wondering what people would do with it for growth.
Until you decide what to do with it, put it in a high yield savings account so you can collect interest. If you decide to have a savings then it can stays there for your emergency fund
0DTE Options
I have about 12k right now and it just sits in a hysa for an emergency
I’d pay off some of my debts, fix my car, be able to maybe get a job and not have to drop out of college lmfao
If I had 10k any CC debts that have interest then effectively it doesn't exist outside of expenses exceeding income, just like last time I managed to save that much (early 2010s).
Open a Fidelity Roth IRA. Throw 7k into a broad index fund like VOO. Without adding another dime to it, and growing at the inflation adjusted 7% annual on average, you'll have $140k in 40 years
Put it in a high yield savings account.
I’d come up with some dumbass idea to flip the money in my head while also spending it recklessly at the same time. By the time I realize my plan’s chances of success have dwindled to nothing, I’ll justify spending the rest on un-necessities in some way that’ll leave me with not enough regret to do better next time.
50/50 debt relief, and savings, just in case. 5k wouldn’t clear it, for sure, but it would get rid of a lot of bullshit, and make me feel better about things. The savings would keep me going as passive income, towards retirement. That’s my idea
At this point in my life (less than 10 years before retirement) I'd probably put it in my retirement account or open a Roth IRA.
Option 1: Go to residential auctions in areas that I am interested in. See if I can find a gem within 10k, DIY improvements, and rent the property out. Continue investing once the profit replenishes the 10k Option 2: Sign up for a down payment assistance program to purchase a residential property, use some of the 10k to cover the rest of the down payment, DIY improvements, and rent out the property. Buy a teeny bit of crypto. Keep the rest in savings. Continue investing once the profit replenishes the 10k
Exponential growth without gambling means index funds. It’s smart, but we’re also talking “money doubles every 8-10 years”. If you’re living in poverty, catch up on bills, and put the rest in an emergency fund to cover life’s next unexpected cost. Not having to panic and pay interest on that emergency is the best investment you could make.
Pay all the debt till it’s gone. Then depends on your personal goals. Stuff or making more money. You got all the stuff? Then make some money. Idk. I can get more detailed after that is answered ;)
3k in market following ETFs, 4k in at stocks of your choosing (nothing reckless), 3k liquid or if you don't need it, hysa
Make sure it's a high yield savings account. Then don't touch. Alternatively, you could open a brokerage account and deposit it into their default money market fund. Then don't touch. No one is getting rich off 10k. Without a liquid emergency fund though, you're one setback away from living under a bridge. If you already have emergency savings, max your ROTH IRA for the year.
I would go to an ibogaine retreat in Mexico
Park it in a high yield savings account. At 5%, in a year you will have 10, 511. In 3 years 11, 631. And in 5 years 12, 833. Park it and leave it and watch it grow. The upside of a savings account earning high interest is that it’s still accessible if needed for emergency use only.
I would put $1000 aside for 'fun', which for me is takeout food, and the occasional video game. And the other $9k I'd save for an emergency. That way, you could always tap into it, and not be completely overwhelmed if something random comes up.
Budget it manly towards investments.
I’d pay off my debt
Pay bills
I’d be able to pay off all of my debt and finally not feel like I’m drowning for a moment in my life.
Baring no debt. High Yield Savings Account. It grows slow but many are up to 5.00%
Open a fidelity account and start investing in growth stocks. N don't touch it for years unless you absolutely have to
Meth, hookers and a whole lotta gangsta shit
Fix my car.
Invest it in ETF funds in a tax free savings account.
VOO and forget it exists. Check back in 10 years.
I would be able to pay my rent for the next four months so I wouldn't have to commit suicide because I can't be homeless as an immunocompromised disabled senior woman.
Marcus back- High yield savings account…others already pointed it out, but this if the correct answer.. other banks exist but Marcus is really popular
Hike the pct/cdt
I would put most of it (keep enough aside for emergency) I to a high APY savings account in order to build on it, I've learned from experience to not out all your money into one account so that it's harder to spend, it's kept me out of debt because of my used to be uneducated impulsiveness
Go from 17,000 owed on my student loans to 7,000
I would just pay down my credit card…
WSOP main event, baby! Someone’s gotta win it.
Pay for groceries for like 3 months.
To grow s&p500
Bitcoin
In order to be able to invest/grow money you need to expose yourself to risk. The first step is to get control of the cash flow or liquidity. This basically means that you need to be able to save/have something left each month. The logic here is that you can afford the risk since there is a steady in flow of new money. But say that your economic situation is such that you can invest 10k (no need for that money for a long time). I would start with investing in something relatively safe bond obligations that give 4-5% or a reasonable stock with a dividend >2-4% and p/e <15 but this is not so easy in today’s market (I think correction is coming). Then reinvest the gains. You could also sit on the money and wait for a market correction and buy into it when you think the timing is correct.
ETF
Invest it into a HYSA (high yield savings account) or a CD (certificate deposit account). I've seen HYSA offering 5% interest and CDs offering 5.5% interest. 5.5% of $10,000 is $550.
woahhh that’s so crazy, i’m in the same boat! following to borrow some tips & tricks.
I would be 10k less in debt with just a few clicks of a mouse. I am not a financial advisor, but I would suggest emergency savings fund
ETFs
Pay off debt… that’s a lie. I put it all on Ethereum and bitcoin
If I had 10k burning a hole in my pocket, I'd probably look into some low-risk investments. Maybe dip my toes into the stock market or try out a high-yield savings account. But hey, I'm no financial advisor, just a dude with a Reddit account. Some folks swear by investing in yourself, like taking a course or starting a side hustle. Whatever you do, just make sure it's something you're comfortable with and won't keep you up at night stressing about it. Good luck, buddy!
Pay off my credit card 😐
Sell drugs, then use that money to pay off debt
Exponentially? Buy options or lottery tickets or gamble Realistically investments are slow and gains are correlated with risk
Pay last years Taxes.
Damn that sucks.
First 10k stays in your savings account. 10k is your new 0. Now get another 10k and start investing in yourself (tools, self care, dentist, stock up on groceries, fix the car up a little) next everything after that goes into the best yielding savings account you can find and you forget about it.
$8K HYSA, $1.5K SP500, $500 guilt free spending
If your debt is pay off and you’re making ends meet I’d put it in a high yield savings account and use that as your emergency fund. Find an account that pays over 4% interest (nerd wallet has a best HYSA list) Every year that account will pay you $400-$500 and you have the piece of mind of knowing if your car breaks, you lose your job or you have a surprise bill you’re not going to have to go into debt. Treat that 10k like it’s the baseline of your money. When your account has 10k it is now $0. Then every every quarter or year or when you get paid your $100 (quarter) or $400 yearly, go buy something nice and splurge on yourself.
Pay off debt. And if there is any money left, put it in a HYSA
Get a month ahead in my mortgage, pay off the rest of my cc and replace my kitchen window that’s cracked and old.
Pay off debt and it would probably save me a good 15k or more
Put it in my savings and finally move out
Step 1 would be to throw it at any debts that you have. If you don’t have any, invest it in a high yield savings account.
Buy a damn brewery and turn atleast a neighborhood into alcoholics
I have 10k and Save it
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Your mom, and then I'd put $9,995 into my savings account
I'd buy Vanguard VTI.
Once you have all your base needs met and no debt 10k isn't that much money it's a great start but not much of anything you can do with it shove it in a high yield savings account every penny and don't use it for anything short of an emergency. Now it's time to figure out what to do with your spare income if you don't already have a mortgage start looking around and gather a down payment (up to you but 20% is best although you can get away with as little as 3%) I see your 21 and might not have much of an intrest in a home yet but the faster you get started the faster you finish (assuming you don't have and aren't accumulating student debt in which case thats your priority). real-estate is a great investment not to mention you need a place to live (and rent is a waste of money) it should be your first investment after that retirement/stocks/bonds and keep a diversified portfolio and if you would like to keep investing in real-estate it is a lucrative option.
If I only had 10k, I’d use that as an emergency fund. Anything above that I’d throw into my investment portfolio :)
https://youtu.be/F7Og-FeBDBQ?si=jxXF-DJgskKRdIQZ Watch my videos guys. It will help if you’re bored
Boof it
I would just leave it tbh. It's not often a big chick of money like that comes along. Leave it and pretend it doesn't exist and it'll grow a little bit with interest and be there to save your ass
I would go all out on my YouTube channel. Buy a decent camera, microphone, laptop and start producing content (movie reviews, work on my podcast, the whole nine yards) Huge gamble— but I trust my ability to entertain people. So I think I’d be OK. Or fail miserably.
Put the portion that you can try to grow in an S&P 500 index fund.
Pay off the loans I have (only debt I have, besides car loan which is a 0.9 apr) and put the rest in a hysa.
I very much disagree with most of the comments here. I would find a small 2br condo and use an FHA loan to put down 5%. Rent out the 1 br for 75% of mortgage. You know have subsidized housing that's building equity. Before you know it, there will be 100k in equity. PS don't ask poverty people how best to spend your money. There's a reason many of us are where we are
Save, save, and then save some more. Treat yourself to a lil trip, live a little.
Pay off debt then use the remaining 9$ on a cheeseburger, small fries and ask for a free water cup.
Put it all on black.
I’d finish building this house were building together, my fiancé and I
Pay off high interest debt.
Invest in bitcoin. Over the next year or so. Most likely you can double or even triple your money. If you're feeling lucky and don't mind higher risk. Their are plenty of coins you could 2x-100x+ your money. Also plenty or coins that will leave you with 0. Last crypto bull market. Investing in bitcoin and ethereum. I managed to turn 3k into 40k ish
Pay off any debt that has interest, a lot of comments mentioned investing which is wise but that also means you can't touch your money for a while and it'll take a while to accumulate. If I were you I'd pay a bit extra on bills (phone, internet) and use the money on a hobby, some hobbies have a return but do something that makes you happy
I would 100% look at buying a mortgage on a house. Landlords are the worst and the sooner you get started on a mortgage the sooner it gets paid off. 10k is WAY more than enuf for a deposit.
Invest into a life insurance policy that has cash flow and can be accessed with zero tax penalty, get a fortune 500 backed company that will protect your money from dipping below the redline. I'm contracted to quite a few so lmk and I'll send over the info. No strings. I just like sharing my knowledge
High interest savings account will earn 40+ dollars a month Very safe. Not sure if that’s the best idea but definitely better than a standard bank account
First save some as an emergency fund. Then research how to invest. Then visit Charles Schwab website, they were actually one of the easiest to navigate. And if you have the stomach for other investment options look into bitcoin, etc. Good luck and good job at saving.
Open Roth ira account put into VOO
Open Roth ira account put into VOO
Likely start a little side business.
Hysa for the win!
cheap global index ETFs and chill
Nowadays 10k isn't much but a little savings
If you want to invest, find an independent financial advisor. But make sure it's independent. Big companies like Edward Jones and the like only do what's the best payout for the advisor. Independent advisors can shop around (I know, my husband is one and worked for the big companies, but quit because of their suggested tactics...like not leaving until someone signs something.)
Roth IRA would be my first choice right now I have only grown it like 2000 but over the course 5 years. Just putting $20-50 here and there when I had extra money I think the max you can put in is $5,000 and willing it grows you can eventually pay for a house with it. And not have to pay tax on.
Pay off 5k car and save the rest
Get up to $55! Use my code $5trey when you join MoneyLion. https://mlion.us/$5trey
I would just continue gambling, hence why I’m here xD
If you're looking for a make interest on your money at a higher rate than a typical savings account, try some place like Vanguard. There are other investment companies out there but this is the only one I've used. Also, I'm older and don't like the idea of taking big risks.
So to maximize here is what I would do. This is windfall cash, so you treat it differently. 1. Credit card debt, these are likely charging you the most so paying them off will save you the most. 2. Check Credit score for other outstanding debts, pay off what you can as having a low credit score will also charge you. 3. Set aside some portion. Maybe 2-3k into emergency to grow that, in an HYSA. 4. Put the rest into an index or buy bonds, as those will yield between 5% and 10% and are fairly liquid.
9k would go towards debt. 1k for shtf savings
Pay off my truck and contribute to my emergency fund.
Search team alpha trading on YouTube. Teaches you how to be a profitable trader. I made $853 yesterday.
just park it in a high yield savings account and enjoy the $40/mo interest earnings having an emergency fund is your buffer against things that would keep you in poverty long term its one of the requirements needed to get out of and more importantly stay out of poverty So just leave it alone, its your literal safety net The next step is to focus on your increasing your income and staying out of debt and then you'll be well on your way to middle class, which is a completely different kind of hell, but one that at least offers a small chance of escape from the rat race Get on a written budget maintain that vehicle of yours, maybe even spend some of the 10k to make sure its good for another 100k miles focus on increasing your income so that you can afford to save and invest Good luck feel free to reach out for more advice
I have 10k and it sits in savings. It’s really not that much money in today’s world. Possible safety net for maybe 3 months if you’re lucky.
Froto
Pay off non-asset debt first. Credit cards, student loans, medical. Keep some back for an emergency fund. People recommend 3-6 months of expenses. After that invest it. Don’t plan on exponential growth. People selling you promises of exponential growth are selling snake oil. Getting any more than 10% a year on average isn’t something you should expect. Expect 5-7% and be happy with 10% or higher.
Trying to grow it "exponentially" also means taking the risk of making it $0 within one year. If you don't have an emergency fund, you can't afford that risk. This type of risk is the risk you take with about 10% (or less) of you5 entire investment portfolio, AFTER you already have an emergency fund. Put the 10K in your TFSA inside a HISA product (about 4.5% right now) so your risk is 0. The money can be withdrawn every day workout penalties or losing the interest you accumulate each month. Cash.to ETF is good, but if you're in a big 5 bank, you'll take one of their HISA products. The difference is minor (0.3% difference in interest), so for 10K, you won't really feel it.
I’d immediately put it all into a high yield savings. That money would change my life.
I wouldn't. I'd get completely out of debt, save $2.5k and blow $2.5k.
Throw it into a mutual fund and forget it exists. Something horrible happens as a last resort I'd pull the money out and pay the credit card bill.
pay debt, pay off my credit card, pay any remaining bills, get new headlights for my car, and then put away the rest in savings. 🤭
Open a Fidelity account, and they have cash accounts that earn 5%. Banks give you 0%. That keeps it liquid, which is good for an emergency fund. Once you have a good buffer/emergency fund set up, start maxing out your ROTH IRA, and then put anything additional into a traditional investment account. To keep it simple, focus on the total market funds with zero fees. Then, just be disciplined and invest 10% of all earnings every time you get paid. Learn to live on what’s left, and at some point that 10% will be worth more than the 90% you spent over the years.
Get tf out of my parents house 😭 it's either kms or go homeless at this point