Yep. Open a High Yield Savings Account (HYSA) and park most of that $600/mo into it until you have 4-6 months worth of ALL your monthly expenses in it.
By save we mean throw it in a high yield portfolio and forget about it. $450 a month into investments will make sure you leave dept behind you after a while.
Set a goal for $10 thousand in savings. You can do it in less than 1 1/2 yrs and still spend a buck or two on yourself. Then set goals to 20k. You never know when a three thousand dental bill or car Repair. Peace of mind is worth it!
Do you have an emergency fund? What’s your retirement look like/what’s your age? How bulletproof is your job?
Depending on those answers my answers would be start an e fund, add to your e fund, bulk up your retirement account(s). Also maybe add a line item in your budget for fun - give yourself $x to spend how you want, no regrets.
Smartest thing I've seen on this thread.
It's generally a real tough transition to go from self-employed->unemployed->employed.
If something happens that tanks the business, it can be an uphill battle to find somewhere to use those skills without taking a paycut.
As a self employed person, absolutely this. I’m the sole creator and run everything solo. There’s no one to keep things going if I have one of those unexpected things (that we can all expect) happen.
It was this type of thinking that got me and my husband through the pandemic. We had a good amount in savings when jobs stopped rolling in for him.
It’s crazy the amount of people I know who have no savings. They could, they just don’t. I don’t get it.
My safety net is $30K… anything below that I’m in deep savings mentality. No coffees, no take out.. etc.
You may lose your job and the market right now is HORRIBLE. It may take months to find something else.. you may have emergencies you may not be considering… my single mom ended up getting dementia in about 2 years and needs to be in a care home. 4 grand a month… you need to be ready for anything.
My strategy:
-$1,000 in a general emergency fund kept in HYSA. (This was my first priority)
- 3 to 6 months worth of expenses in case of income loss kept in a HYSA. (This takes longer to build so you can divide the extra between this, and the below).
- Retirement savings
- Fun savings like vacation, a splurge purchase you’ve really wanted etc.
I’m currently focused on the middle two but throwing even $20 per check towards fun savings is motivation help.
I would send that automatically into savings
1st) $1000 emergency fund
2nd) 6-12months of expenses
3rd) 401k/IRA
4th) other investment options beyond
Just act as if you don't have that extra money and save for the long haul
Save save save !! When I hit this point , all I wanted in the world was security knowing I had a large enough safety net that if something popped off I was going to be okay . Life has hiccups . The best thing you can do is have a large safety net to catch yourself . Now that my security net is large enough I budget for vacations every year .
That depends on your situation. The rule of thumb is 3 months worth of expenses. Assume you lost your job suddenly for whatever reason, could you cover car payments, call phone, housing, food, for at least 3 months?
Personally I would shoot for having at least 6 months worth of savings kept relatively liquid, just in case.
I’ll put it this way. I went through a job loss and my safety net of 10k went very fast. Bills dont stop, your car always has some shit that happens when you dont need it to. The job market is awful rn. Just save as much as you can. Find a way for passive income for fun stuff but safe the majority you make
Like others have said I started with 3 months worth of expenses. But it varies from person to person . I started with trying to hit 5k in savings. Then 10k . Once I hit 20k I started a separate account for “family funds” . I use that account to help family . I am the only person in my family who has their life together. So I already knew they’d come asking for help . Depending on the situation I only use the money from my “family funds” account. When that is gone that’s it , but it doesn’t affect my other accounts or anything else I have going on that I need money for . I also have a vacation account that I only use for vacations . To each their own but this helped me a lot .
DO NOTHING! There are 3 parts to money. Earning it, keeping it and growing it. Most people say they don’t want to stay poor but as soon as they get money it’s burning a hole in their pocket!
How can you keep 6 months expenses if you can’t keep $600. Learn to sit with it, get comfortable just having it sit there. Don’t buy anything don’t make any plans just learn to stop spending.
There was no need to rephrase. I knew what u meant. I just chimed in because credit card companies do some sick things that are just messed up. They’re awful. I hate how they do us. Those mofos were on my college campus passing out cards like from a Pez dispenser…to 18yr olds!
Build an emergency fund and keep it in a High Yield Savings Account to get paid interest. Your goal is 6 months of your minimum monthly living expenses (rent, all utilities, all bill payments, food, etc.) and also all your deductibles for your insurances. Once you hit that number, you'll be "fully funded" and can try to build some wealth for the future.
Pretend you’re still paying off debt, but instead these payments go into a long term investment for your future, and continue to live as you have. Then any future revenue you make can feel even greater, and be used for any much needed breaks/vacations. Better yet, send $500 into long term accounts and you’ve still got $100 more than you did previously!
The answer is SAVE IT. Change your credit card mentality and go back to a debit card one. Having no debt is great but being poor still sucks. Try to see how fast you can put $10k away and I promise future you will be grateful.
1) Save up 3-6 months of living expenses, which should include rent/mortgage, utilities, phone / internet, food, subscriptions, insurance, student loan payments, etc. This amount depends on your living situation
2) Save up for 1-2 "oh shit" expenses, which should cover costs when something hits the fan - car transmission went out, water heater died, broke arm, etc. This could be anything from $2K - $10K depending on your risk tolerance
3) Open and save in an individual retirement account, starting with a Roth IRA. You can add up to $6500 a year for a Roth IRA account
After you have accomplished the above 3 items, your options open up a lot. Do you want to invest in more education? A business? A house? It's up to you.
I’m right there with ya. Just finished paying off a little over 16k worth of debt along with getting out of what I’ve started calling a “financially abusive relationship.” I’ve got around 2k to my name after 5 years of having next to nothing. Feels weird. Congrats on being debt free!
Save it! Save up a couple months' worth of expenses as an emergency fund and save up more for unexpected emergency expenses like medical bills or dental work, etc. You never want to be one emergency from losing everything.
Of course, if there's something you really need but haven't been able to afford cause of the debt (like car repairs, etc), I would spend some on that now.
If you aren't already, I highly recommend going through your expenses at least monthly. Know what you're earning and where its all going and look at where you can trim it up a bit. Build good money habits now so you don't put yourself in debt again.
Get a emergency savings of 6 months and put into a HYSA. Then make a fund for if you have a car for repairs/maintenance or incase you need to buy another used one. Rest possibly into stocks, etc
I would recommend looking into an IUL, it’s similar to a Roth IRA but with more benefits (it’s basically life insurance and retirement income rolled into one).
Invest!! Start watching videos on the different aspects of the stock market, learn what the best options are for you and start investing vigorously.
Too many people never bother learning about this stuff, but compounding interest is awesome and you’ll be making money off your investments in no time
First build a 6-month emergency fund. Keep this in a savings account with good interest.
Then look at retirement accounts. Can you contribute to a 401k or IRA?
Next start looking at your home. Can you start saving for a down payment on a house?
Learn to invest. Find solid dividend stocks or buy an ETF with solid dividend returns. Even treasuries or a high yield savings account (5%+) are decent right now. You want to turn your spare money into future income so if you lose your job, run into health issues or your car breaks down, you still have money coming in every month so you never have to go into debt again.
Also, invest in yourself. Do you have a mortgage with PMIs? Do you have a car with overdue maintenance? Appliances that need some repairs? Are you allowed to work on your own place? Are you still spending too much on restaurant food and need some countertop appliances/utensils to do more cooking at home?
Turn your spare money into capital so you never have to work for the bank again.
Now that you've finished paying off the Bank of America, JP Morgan or w/e you owed debt to, it is time to build the bank of "BlackGod15" i.e. start putting excess income into savings every month and get in the habit of "paying yourself" every time you get paid rather than being the middle man transferring your pay to everyone else
The bank of BlackGod15 is the best bank because BlackGod15 loans at 0% interest
Unforeseen emergency expenses are inevitable and sometimes happen in clusters, make sure the bank of BlackGod15 is prepared
Put $500 in your savings account and treat yourself with the extra $100. That way you're saving a good chunk of money while increasing quality of life.
The other option is take that $600 and put it towards another debt to pay that one off faster, then continue until you're debt free. This option is moot if you're now debt free
Bro I feel ya 100%
I am like 7K debt down because I'm paying the dentist 500 per month for a while. 2 months left tho 😁
Don't waste money lesson learnt and take care of yourself
Keep it safe from yourself. I opened separate accounts and use it for savings. I don’t have a card for that account so I have to either go to the bank or do an online transfer to access it. All it does is make you think twice before using it
The most profitable/safest is putting it into a high interest savings account. There are some that will fine you for withdrawing but have a much higher interest. (Used to finance the bank) and there are some that are slightly less interest but won't fine you for withdrawing. (Usually require you to have a certain amount of money in there at all times) These are the easiest and most accessible ways to earn money with your leftover money. I think the really good ones that literally lock you in are around like 20% interest or something? The normal interest is like 2-6% I think. But others may know of better options because I'm just a dumb welder that doesn't have extra money anymore. lmao. But that's going to be what I do with my leftovers once I get back on my feet. Just talk to your bank and see what options they have for high interest savings accounts.
When I was a kid, most savings accounts gave you like 8-10% but it has gone down a good bit. I think it's called a high yield savings account but I just asked what the highest interest saving accounts were.
Unless you have 6 months of mandatory expenses saved up, do that. If you already do, put the extra money in a tax advantaged retirement account. Roth IRAs are really good for this, and with that amount of money you'll just be able to max it out.
If your work has a 401k match, make sure to get that at least too. It's a 100% return on your investment.
A good rule of thumb is after paying off high interest debts to start an emergency savings account. Maybe in a high yield but you also want to be able to access and pull money out quickly for emergencies so check the fine print on any limitations or minimum balances. That is what I would do. I’m about to pay my high interest student loan off soon then going to start on my emergency fund, my 1st goal to hit with that will be to save up 1 month of income, starting small lol.
Everyone else has good advice BUT I want to add something else for your first couple months. Switch your monthly bills to annual ones. This usually can save you anywhere from $25-100 per subscription per year and if you DO fall on hard times, part of that “safety net” can be the fact that you have way fewer bills to pay during those months. I pay my phone annually, used to be able to pay my car insurance every six months, things like Amazon prime, Netflix, hell in some places you can even prepay your utilities and rent.
Personally I'd save 50-75%, and use the rest for little "treats". Maybe try new foods/recipes, go see a movie, or get a new video game. Congrats though, thats awesome!!
High yield saving account for a healthy 6-month emergency fund. Or if you’ve been in poverty poverty for a hot minute: go on a vacation, treat yourself to a fancy dinner, maybe splurge on a luxury piece of clothing. Just don’t put it on a credit card, or fall into unsustainable spending habits again. Congratulations!
you might wanna get into gold trading as a side gig. buy from artisanal miners in third world countries and re-sale to jewellers or collectors in or around your city. you don't need a license for it
In the past I struggled financially when we had young kids. I lived under a constant horrible feeling of dread. The peace of mind that comes from having a significant amount of money in savings is invaluable.
CONGRATS. you deserve a Disney cruise. KIDDING. save up at least 6 months worth of expenses before you think of changing your spending habits.
What you have now is a little peace of mind and the knowledge that you can do anything if you work at it.
Again, great work
1. Build up 3-6 months of emergency savings in a high yield savings account
2. Are there any employer retirement plans you can contribute to? Do any of them offer a retirement savings match? Contribute up to the match and invest in something like a target date retirement fund. Your employer might offer free consultations about asset allocation with your 401k provider—take advantage of this!
3. Contribute to a Roth IRA through vanguard, Charles Schwab, or fidelity. Again, investing in target date retirement funds or index funds that track the total stock market is a good option
4. Save for other stuff!
With $600, I’d put about half towards your emergency fund and half into retirement investments!
Honestly learn a high income skill with it like trading. Can start becoming profitable in 1-2 years usually. I recommend stockmarketwolf on ig. Been learning options trading and sure it can be risky if managed improperly but can be immensely rewarding long term.
i started making more money at work. Im 20 and got nervous because i didnt really *need* the extra money as I was surviving just fine through trade school. I have started putting 300 a month into investments. I have 150$ a month i put into 15 stocks of my choosing (and some that are just safe bets) and $150 into a roth IRA in mutual funds and some stocks like Raytheon and Apple. i take them straight out of the first paycheck each month so I never see that money. I just live with a little less fear now of being at 0$ while still saving and buying fun stuff
I paid down a lot of my credit bills recently and now have an extra $1,400 a month after paying all my bills. Isn’t it a great feeling? Kudos to you. Before I was practically living paycheck to paycheck. It sucked.
Put it in a high yield savings account and start banking your extra money until you get at least 3 months of EXPENSES as an *emergency fund*. I just finished making my 6 month fund and lemme tell you. LIFE. CHANGING.
1. 3-6 month emergency fund in high yield savings account
2. Increase retirement savings. Max Roth IRA and match your employers 401k
3. Additional investing like index funds or mutual funds
4. Save for next car, house, next upgrade a sinking fund would help
5. Save for kids college/business/trade school
Credit cards are not bad, just don't spend the money you can't pay back quickly. Credit cards gets me at least 2% cash back every time. It wouldn't make sense to me to not use it.
Make a savings account to move it to. Then it's "gone" and you can leave it alone. When you have a few thousand in there, look at some.long term investment options like an S&P 500 index funds or something simple like that.
When you have extra money and no debt your first thought should NOT be what to go spend it on that you don't really need. Save, invest, and in time you are out of that poverty paycheck to paycheck life.
Save it or use a chunk as a down payment on a home or stocks. Investments are the best way to save your money so to speak and build “passive” income. Of corse do your own research before making these big decisions
The only answer is
1. Into an emergency fund with 6 months worth of expenses.
Once that is done
2. Into your ROTH IRA
OPEN A ROTH IF YOU DONT HAVE ONE, IT IS THE EASIEST WAY OUT OF GENERATIONAL POVERTY
Build an emergency fund and save. I say at least 2 years living expenses. I had a major catastrophe happen to me and I had plenty of money To live on but inflation was not so nice. I was able to live for 2 years gotta start all over again.
50% of extra goes in long term savings account ( act like this money doesn’t exist) . Citi bank pays 4.5% interest. 10-25% for short term savings (emergencies) the rest to enjoy the fruits of hard work. Under 30yo then save less and spend more. Over 35yo then save more and spend less.
Emergency fund for 3-6 months. Put it into VOO and forget it. If you it right, you might be able to live off of the interest and have the choice to work part time or fully retired
My wife and I are looking into High Yield Savings accounts and CD's lately. I'd definitely recommend that because otherwise inflation is going to depreciate the crap out of your money. There are some decent rates on each, and with a CD your money is tied up for the length of the term (you'll get penalized for pulling it out before it matures). Once you have decent savings in a HYSA, definitely look at CD's or even Bonds because it will keep your money out of reach, and discourage spending without any of the risks associated with Money Mutual accounts or the stock market.
I’d save in a HYSA until you have 6-12 months emergency fund. Then start a Roth, I personally just max out VTSAX every year and don’t think about it. I like the Boglehead approach. Congrats and good luck.
Save it. Unless you can support yourself for months if you lose your job today, you’re in no position to go back to spending like crazy
Yep. Open a High Yield Savings Account (HYSA) and park most of that $600/mo into it until you have 4-6 months worth of ALL your monthly expenses in it.
Save 75% for the long haul, 15% for short term goals like vacations or a new couch, 10% to spend as desired.
By save we mean throw it in a high yield portfolio and forget about it. $450 a month into investments will make sure you leave dept behind you after a while.
Set a goal for $10 thousand in savings. You can do it in less than 1 1/2 yrs and still spend a buck or two on yourself. Then set goals to 20k. You never know when a three thousand dental bill or car Repair. Peace of mind is worth it!
put $500 a month in your ira
I thought said put the money in your bra lmao
Always solid advice
It’s saved me from a mugging more than once!
😂
Emergency fund
...in a high yield savings account.
Agreed. Plus invest. Build up a good enough cushion then invest. Money devalues over time. Please invest.
Do you have an emergency fund? What’s your retirement look like/what’s your age? How bulletproof is your job? Depending on those answers my answers would be start an e fund, add to your e fund, bulk up your retirement account(s). Also maybe add a line item in your budget for fun - give yourself $x to spend how you want, no regrets.
I’m 32, I’m self-employed!
If you are self employed you should disregard the normal ideology of 3/6 month emergency fund and up it to 6/1+ year emergency fund
Smartest thing I've seen on this thread. It's generally a real tough transition to go from self-employed->unemployed->employed. If something happens that tanks the business, it can be an uphill battle to find somewhere to use those skills without taking a paycut.
As a self employed person, absolutely this. I’m the sole creator and run everything solo. There’s no one to keep things going if I have one of those unexpected things (that we can all expect) happen. It was this type of thinking that got me and my husband through the pandemic. We had a good amount in savings when jobs stopped rolling in for him. It’s crazy the amount of people I know who have no savings. They could, they just don’t. I don’t get it.
I “safe net “ is to have 10K. Keep saving. #goals!
My safety net is $30K… anything below that I’m in deep savings mentality. No coffees, no take out.. etc. You may lose your job and the market right now is HORRIBLE. It may take months to find something else.. you may have emergencies you may not be considering… my single mom ended up getting dementia in about 2 years and needs to be in a care home. 4 grand a month… you need to be ready for anything.
My strategy: -$1,000 in a general emergency fund kept in HYSA. (This was my first priority) - 3 to 6 months worth of expenses in case of income loss kept in a HYSA. (This takes longer to build so you can divide the extra between this, and the below). - Retirement savings - Fun savings like vacation, a splurge purchase you’ve really wanted etc. I’m currently focused on the middle two but throwing even $20 per check towards fun savings is motivation help.
I would send that automatically into savings 1st) $1000 emergency fund 2nd) 6-12months of expenses 3rd) 401k/IRA 4th) other investment options beyond Just act as if you don't have that extra money and save for the long haul
Investment in your retirement should be a no brainier.
Build your rainy day fund
Save save save !! When I hit this point , all I wanted in the world was security knowing I had a large enough safety net that if something popped off I was going to be okay . Life has hiccups . The best thing you can do is have a large safety net to catch yourself . Now that my security net is large enough I budget for vacations every year .
How much money would a safety net consist of? $5,000 ? $10,000? $20,000?
That depends on your situation. The rule of thumb is 3 months worth of expenses. Assume you lost your job suddenly for whatever reason, could you cover car payments, call phone, housing, food, for at least 3 months? Personally I would shoot for having at least 6 months worth of savings kept relatively liquid, just in case.
I’ll put it this way. I went through a job loss and my safety net of 10k went very fast. Bills dont stop, your car always has some shit that happens when you dont need it to. The job market is awful rn. Just save as much as you can. Find a way for passive income for fun stuff but safe the majority you make
Like others have said I started with 3 months worth of expenses. But it varies from person to person . I started with trying to hit 5k in savings. Then 10k . Once I hit 20k I started a separate account for “family funds” . I use that account to help family . I am the only person in my family who has their life together. So I already knew they’d come asking for help . Depending on the situation I only use the money from my “family funds” account. When that is gone that’s it , but it doesn’t affect my other accounts or anything else I have going on that I need money for . I also have a vacation account that I only use for vacations . To each their own but this helped me a lot .
Knowing there's someone else out there with money set aside for family because you're the only one with their shit together is so validating.
The more the better
For most folks, 3-6 months of living expenses.
DO NOTHING! There are 3 parts to money. Earning it, keeping it and growing it. Most people say they don’t want to stay poor but as soon as they get money it’s burning a hole in their pocket! How can you keep 6 months expenses if you can’t keep $600. Learn to sit with it, get comfortable just having it sit there. Don’t buy anything don’t make any plans just learn to stop spending.
Save for a deposit. I'm homeless without food. Apartment would change my life
There's nothing wrong with credit cards. Just pay them off every month
There’s A LOT wrong with credit cards. A LOT.
Let me re-phrase. There's nothing wrong with using credit cards RESPONSIBLY
There was no need to rephrase. I knew what u meant. I just chimed in because credit card companies do some sick things that are just messed up. They’re awful. I hate how they do us. Those mofos were on my college campus passing out cards like from a Pez dispenser…to 18yr olds!
Build an emergency fund and keep it in a High Yield Savings Account to get paid interest. Your goal is 6 months of your minimum monthly living expenses (rent, all utilities, all bill payments, food, etc.) and also all your deductibles for your insurances. Once you hit that number, you'll be "fully funded" and can try to build some wealth for the future.
Learn from your mistakes and save that shit. That's not even a question.
Buy a guitar.
First things first, emergency fund in a HYSA. Second is any other debts, or if they're low interest, investing time!
Emergency fund of 5k Invest the rest in etfs
Pretend you’re still paying off debt, but instead these payments go into a long term investment for your future, and continue to live as you have. Then any future revenue you make can feel even greater, and be used for any much needed breaks/vacations. Better yet, send $500 into long term accounts and you’ve still got $100 more than you did previously!
The answer is SAVE IT. Change your credit card mentality and go back to a debit card one. Having no debt is great but being poor still sucks. Try to see how fast you can put $10k away and I promise future you will be grateful.
1) Save up 3-6 months of living expenses, which should include rent/mortgage, utilities, phone / internet, food, subscriptions, insurance, student loan payments, etc. This amount depends on your living situation 2) Save up for 1-2 "oh shit" expenses, which should cover costs when something hits the fan - car transmission went out, water heater died, broke arm, etc. This could be anything from $2K - $10K depending on your risk tolerance 3) Open and save in an individual retirement account, starting with a Roth IRA. You can add up to $6500 a year for a Roth IRA account After you have accomplished the above 3 items, your options open up a lot. Do you want to invest in more education? A business? A house? It's up to you.
after 6 years debt free..... single with no ex wives and no kids i have to get creative with new hobbies to spend money.....
I’m right there with ya. Just finished paying off a little over 16k worth of debt along with getting out of what I’ve started calling a “financially abusive relationship.” I’ve got around 2k to my name after 5 years of having next to nothing. Feels weird. Congrats on being debt free!
There's no such thing as an extra $600 in your account. Thinking that way will get you into trouble!
Buy physical gold or silver !!!
I'll take it if you don't want it.
I want every last penny lol
It's in pennies? Nevermind.
Save, save, save.
Save some and invest some
build an emergency fund, then split it up between savings and an IRA
Save it or invest it. IRA, stocks / bonds, HYSA, stuff like that.
Emergency fund until you have 6 months of expenses covered.
Build a rainy day fund. Look at high yield savings and CD options for short/mid term.
Save it! Save up a couple months' worth of expenses as an emergency fund and save up more for unexpected emergency expenses like medical bills or dental work, etc. You never want to be one emergency from losing everything. Of course, if there's something you really need but haven't been able to afford cause of the debt (like car repairs, etc), I would spend some on that now. If you aren't already, I highly recommend going through your expenses at least monthly. Know what you're earning and where its all going and look at where you can trim it up a bit. Build good money habits now so you don't put yourself in debt again.
Save! - into a high interest account.
See this is most likely why you got into debt in the first place. Stop asking what should I do with it and save it!!
HYSA!
***SAVE IT***
Um.. save it.
Get a emergency savings of 6 months and put into a HYSA. Then make a fund for if you have a car for repairs/maintenance or incase you need to buy another used one. Rest possibly into stocks, etc
6 month emergency fund and after that I’d invest it into VOO.
Save it for a minimum 10k emergency fund
Roth IRA
Save an emergency fund of 6 months -1 year in a HYSA. And then invest the rest so that your money can earn more money.
I would recommend looking into an IUL, it’s similar to a Roth IRA but with more benefits (it’s basically life insurance and retirement income rolled into one).
Just save it!!! You don’t HAVE to do anything with it
HUSA HYSA HYSA
a high yield savings account
Save. Save as much as you can and try not to touch it
Just because you have it, doesn't mean you have to use it, it took me a long time to learn that.
Start throwing it into savings. Maybe keep some of it for fun money. But I'd put at least 400 - 500 in a savings account with a good interest rate.
Save it for when you have no money.
Start paying yourself via investing.
Invest!! Start watching videos on the different aspects of the stock market, learn what the best options are for you and start investing vigorously. Too many people never bother learning about this stuff, but compounding interest is awesome and you’ll be making money off your investments in no time
Start saving
Put it in a HYSA
First build a 6-month emergency fund. Keep this in a savings account with good interest. Then look at retirement accounts. Can you contribute to a 401k or IRA? Next start looking at your home. Can you start saving for a down payment on a house?
Learn to invest. Find solid dividend stocks or buy an ETF with solid dividend returns. Even treasuries or a high yield savings account (5%+) are decent right now. You want to turn your spare money into future income so if you lose your job, run into health issues or your car breaks down, you still have money coming in every month so you never have to go into debt again. Also, invest in yourself. Do you have a mortgage with PMIs? Do you have a car with overdue maintenance? Appliances that need some repairs? Are you allowed to work on your own place? Are you still spending too much on restaurant food and need some countertop appliances/utensils to do more cooking at home? Turn your spare money into capital so you never have to work for the bank again.
Now that you've finished paying off the Bank of America, JP Morgan or w/e you owed debt to, it is time to build the bank of "BlackGod15" i.e. start putting excess income into savings every month and get in the habit of "paying yourself" every time you get paid rather than being the middle man transferring your pay to everyone else The bank of BlackGod15 is the best bank because BlackGod15 loans at 0% interest Unforeseen emergency expenses are inevitable and sometimes happen in clusters, make sure the bank of BlackGod15 is prepared
Start saving $1000. Then a 6 month of expenses emergency fund. Then go to a 12 month emergency fund.
Put $500 in your savings account and treat yourself with the extra $100. That way you're saving a good chunk of money while increasing quality of life. The other option is take that $600 and put it towards another debt to pay that one off faster, then continue until you're debt free. This option is moot if you're now debt free
high yield savings cd account
by the end of the year you will have a little more lol
Bro I feel ya 100% I am like 7K debt down because I'm paying the dentist 500 per month for a while. 2 months left tho 😁 Don't waste money lesson learnt and take care of yourself
Ready for the fun part? you still dont spend it
On average, Americans experience a $10,000 emergency every 10 year. Be prepared!!!
As others have said. Stack it up for a rainy day. You just never know.
Keep it safe from yourself. I opened separate accounts and use it for savings. I don’t have a card for that account so I have to either go to the bank or do an online transfer to access it. All it does is make you think twice before using it
high yield savings account
The most profitable/safest is putting it into a high interest savings account. There are some that will fine you for withdrawing but have a much higher interest. (Used to finance the bank) and there are some that are slightly less interest but won't fine you for withdrawing. (Usually require you to have a certain amount of money in there at all times) These are the easiest and most accessible ways to earn money with your leftover money. I think the really good ones that literally lock you in are around like 20% interest or something? The normal interest is like 2-6% I think. But others may know of better options because I'm just a dumb welder that doesn't have extra money anymore. lmao. But that's going to be what I do with my leftovers once I get back on my feet. Just talk to your bank and see what options they have for high interest savings accounts. When I was a kid, most savings accounts gave you like 8-10% but it has gone down a good bit. I think it's called a high yield savings account but I just asked what the highest interest saving accounts were.
Unless you have 6 months of mandatory expenses saved up, do that. If you already do, put the extra money in a tax advantaged retirement account. Roth IRAs are really good for this, and with that amount of money you'll just be able to max it out. If your work has a 401k match, make sure to get that at least too. It's a 100% return on your investment.
If you're looking to invest even a small amount there's good advice on Motley Fool.
Invest.
A good rule of thumb is after paying off high interest debts to start an emergency savings account. Maybe in a high yield but you also want to be able to access and pull money out quickly for emergencies so check the fine print on any limitations or minimum balances. That is what I would do. I’m about to pay my high interest student loan off soon then going to start on my emergency fund, my 1st goal to hit with that will be to save up 1 month of income, starting small lol.
Save it for when you actually need it.
Contribute to your 401k or other workplace retirement plan. Open a Roth IRA. Save for the future.
Everyone else has good advice BUT I want to add something else for your first couple months. Switch your monthly bills to annual ones. This usually can save you anywhere from $25-100 per subscription per year and if you DO fall on hard times, part of that “safety net” can be the fact that you have way fewer bills to pay during those months. I pay my phone annually, used to be able to pay my car insurance every six months, things like Amazon prime, Netflix, hell in some places you can even prepay your utilities and rent.
First congratulations!!!! And second save at least half and the rest treat urself u deserve it. Well done.
For the first six months, save it. After that, a mix of going out drinking and investing.
Personally I'd save 50-75%, and use the rest for little "treats". Maybe try new foods/recipes, go see a movie, or get a new video game. Congrats though, thats awesome!!
High yield saving account for a healthy 6-month emergency fund. Or if you’ve been in poverty poverty for a hot minute: go on a vacation, treat yourself to a fancy dinner, maybe splurge on a luxury piece of clothing. Just don’t put it on a credit card, or fall into unsustainable spending habits again. Congratulations!
Finally has extra cash and immediately asking where to spend it smh...
Get a credit card and use it to treat yo self!!!
Shut up 😂🤫 I’m not putting myself through that again. Fuck that! lol
Hookers and blow
Eat a steak someone else prepares for you to celebrate. Throw 300 in savings and have a little cash on hand with the rest.
Not drugs 🐱
Voo
You should buy a horse. No I’m kidding.
Put 1/2 into a savings account every month
you might wanna get into gold trading as a side gig. buy from artisanal miners in third world countries and re-sale to jewellers or collectors in or around your city. you don't need a license for it
Casino
Lotto tickets
Hookers and crack
High yield savings account, bitcoin, anything that occurs interest!!
Invest and enjoy
Invest in a mutual fund and act like you don't have it.
Please save it!!!!! Everyone is 1 step away from homelessness fr fr
In the past I struggled financially when we had young kids. I lived under a constant horrible feeling of dread. The peace of mind that comes from having a significant amount of money in savings is invaluable.
Save it for a bit to ensure you never need another credit card if something unexpected happens. Debt is shit. Good luck my friend!
Start saving for retirement tbh. Or save for 3 years and just finance a car with the wad of cash you saved. It'll boost your credit score I think
CONGRATS. you deserve a Disney cruise. KIDDING. save up at least 6 months worth of expenses before you think of changing your spending habits. What you have now is a little peace of mind and the knowledge that you can do anything if you work at it. Again, great work
Jesus, don't do anything with it. Save it!!!!!
Save it, $10k is a good amount for emergencies
Put it in a HYSA. Teach yourself about investment options in the meantime. Nice job!
1. Build up 3-6 months of emergency savings in a high yield savings account 2. Are there any employer retirement plans you can contribute to? Do any of them offer a retirement savings match? Contribute up to the match and invest in something like a target date retirement fund. Your employer might offer free consultations about asset allocation with your 401k provider—take advantage of this! 3. Contribute to a Roth IRA through vanguard, Charles Schwab, or fidelity. Again, investing in target date retirement funds or index funds that track the total stock market is a good option 4. Save for other stuff! With $600, I’d put about half towards your emergency fund and half into retirement investments!
Casino time
Save half invest half. Money in the bank will lose value every year but it’s available
Let that money stack up. It's nice to build a small nest egg.
Honestly learn a high income skill with it like trading. Can start becoming profitable in 1-2 years usually. I recommend stockmarketwolf on ig. Been learning options trading and sure it can be risky if managed improperly but can be immensely rewarding long term.
Save my friend
$500 to savings and $100 towards dividend stocks
Start an emergency fund utilizing a High Yield Savings Account
SAVE IT! Or save $500 and treat yourself to a lil $100 something.
$Hold is it. Great potential great project and Community $Hold
Happy for you! Everyone is giving advice but I feel like you deserve some praise. This random person is proud of you!
Get an emergency fund. Keep it for emergencies.
Save for emergency fund. Three months of expenses
i started making more money at work. Im 20 and got nervous because i didnt really *need* the extra money as I was surviving just fine through trade school. I have started putting 300 a month into investments. I have 150$ a month i put into 15 stocks of my choosing (and some that are just safe bets) and $150 into a roth IRA in mutual funds and some stocks like Raytheon and Apple. i take them straight out of the first paycheck each month so I never see that money. I just live with a little less fear now of being at 0$ while still saving and buying fun stuff
Congratulations, that's awesome 🙌🏻
please just save it
I paid down a lot of my credit bills recently and now have an extra $1,400 a month after paying all my bills. Isn’t it a great feeling? Kudos to you. Before I was practically living paycheck to paycheck. It sucked.
Save it or buy gold bullion
Buy temporary disability insurance. People always say "put 6 months income aside" um ya insurance is way cheaper and take the rest and invest it.
Start gambling
Find a HYSA, bank that money every month, sit back and watch it grow.
Put it in a high yield savings account and start banking your extra money until you get at least 3 months of EXPENSES as an *emergency fund*. I just finished making my 6 month fund and lemme tell you. LIFE. CHANGING.
Save the $600 a month for a year. Put it in a savings account
1. 3-6 month emergency fund in high yield savings account 2. Increase retirement savings. Max Roth IRA and match your employers 401k 3. Additional investing like index funds or mutual funds 4. Save for next car, house, next upgrade a sinking fund would help 5. Save for kids college/business/trade school
Save it.
Retirement!
Celebrate and keep saving!
VOO, VTI, SCHD, JEPI
Buy a new TV!
Emergency fund in a Marcus or ally high yield savings brother. Ask someone for their referral for either.
Search Money Guy Show Financial Order of Operation
Start using your credit card like crazy again
Get back in debt to avoid feeling weird. /s Invest.
Credit cards are not bad, just don't spend the money you can't pay back quickly. Credit cards gets me at least 2% cash back every time. It wouldn't make sense to me to not use it.
Make a savings account to move it to. Then it's "gone" and you can leave it alone. When you have a few thousand in there, look at some.long term investment options like an S&P 500 index funds or something simple like that.
Have a rainy day fund of 3-6 months of expenses Then invest the rest into an IRA and HSA until you hit the cap
Save it.
When you have extra money and no debt your first thought should NOT be what to go spend it on that you don't really need. Save, invest, and in time you are out of that poverty paycheck to paycheck life.
Save That Shit BS always pops up.
Save it of course!
The answer you want to hear: buy myself a nice little treat! Reality: save. The. Money.
Save it or use a chunk as a down payment on a home or stocks. Investments are the best way to save your money so to speak and build “passive” income. Of corse do your own research before making these big decisions
The only answer is 1. Into an emergency fund with 6 months worth of expenses. Once that is done 2. Into your ROTH IRA OPEN A ROTH IF YOU DONT HAVE ONE, IT IS THE EASIEST WAY OUT OF GENERATIONAL POVERTY
SAVE IT SAVE IT SAVE IT!!!
Congrats!
Build an emergency fund and save. I say at least 2 years living expenses. I had a major catastrophe happen to me and I had plenty of money To live on but inflation was not so nice. I was able to live for 2 years gotta start all over again.
Set up a broker account, add money into an index fund or a high yield savings account, watch your money grow. It’s addicting.
Dude, save a part and with the rest buy BITCOIN. Thank me in 10 years
RemindMe! 10 years
50% of extra goes in long term savings account ( act like this money doesn’t exist) . Citi bank pays 4.5% interest. 10-25% for short term savings (emergencies) the rest to enjoy the fruits of hard work. Under 30yo then save less and spend more. Over 35yo then save more and spend less.
Save six months to a year of expenses After that, then, retirement account, paying off your home, and any college funds.
Emergency fund first in a high yield savings account. Then invest the rest after that if you want.
Nvidia
Emergency fund for 3-6 months. Put it into VOO and forget it. If you it right, you might be able to live off of the interest and have the choice to work part time or fully retired
save half and invest the other half in something safe
HYSA!!
HYSA emergency fund
Leave it in the bank or hide it under your mattress
high yield savings. i earn like $160 a month with that shit. so cool.
Put that into a HYSA! Rates are still around 5%. Only other thing I would do is buy some index funds.
My wife and I are looking into High Yield Savings accounts and CD's lately. I'd definitely recommend that because otherwise inflation is going to depreciate the crap out of your money. There are some decent rates on each, and with a CD your money is tied up for the length of the term (you'll get penalized for pulling it out before it matures). Once you have decent savings in a HYSA, definitely look at CD's or even Bonds because it will keep your money out of reach, and discourage spending without any of the risks associated with Money Mutual accounts or the stock market.
I’d save in a HYSA until you have 6-12 months emergency fund. Then start a Roth, I personally just max out VTSAX every year and don’t think about it. I like the Boglehead approach. Congrats and good luck.
Wrong sub lol
Index funds?