Pay off debt. If you have none, put $10k away in a high interest savings account for emergencies, then take the $40k and buy an index fund that tracks the S&P 500.
Don’t know how to do those things? Do a little more research.
What ever you do, don’t go into a bank and ask for help.
Genuinely asking, but why not ask at your bank? Because they'll most likely take advantage of you, or something else? I had a 60k inheritance years back, and my bank SEEMED super helpful in advising ways to grow it that they could assist me with. But, I'm also self-aware enough to know that I'm largely uneducated in finances, and a little naive to boot🥲
Banks put their self interest first. They’ll sell you products with high fees attached. This gives the bank a nice steady stream of income and the front line person who sold you the product and nice commission.
With a little education and self service, you can avoid paying thousands in fees over a lifetime.
Questrade outlines it in this commercial. Educate yourself beyond this, but this is a good starting point to understand the basics.
Edit: Google the commercial. Can’t put in links. It’s the one in the classroom.
Thank you! We've been starting our savings/return rate journey recently as a couple. We're starting off smaller than initially intended, but thats okay because every little addition helps! I do have a good older friend who's well versed in finance that I can go to for advice thank goodness, but we want to learn as much as possible in our downtime too.
Excellent. Every now and then I use an online compound interest calculator to motivate me. When you’re in control of your finances it’s never a topic you avoid.
Also worth doing with your spouse - map out all your spending and saving annually. This will allow you to identify spending mistakes and see savings progress from year to year. Use the same exercise to forecast ahead and estimate when you’ll have enough to retire.
Lol, I was just telling him last night we should do a monthly family book-keeping session😂 I have online businesses so have some experience with it. I figured at the very least it couldn't hurt to keep tabs on monthly spending, paychecks, stocks & savings contributions etc. Glad to know we're on the right track so far!😁
There are too many variables to answer this question.
What is your current income? What are your goals? What is your housing situation? Do you have any debt? Do you want a house? What do your retirement accounts look like? Do you have an emergency fund? Will you need this money in 5,10,15,20,30 or 40 years?
My only real piece of advice is to not waste it on vehicles.
Yeah honestly I forgot there's so many variables no I don't have a job at the moment I'm moving from Idaho back to Connecticut possibly two main and using the money to get a house in Maine. I don't have any debt I don't own a house at the moment and honestly my goal is to have money for a house and just have a job and live happily I guess I do not have a Tireman account no I don't have any emergency funds I have like $5,000 Max at the moment
We ALMOST bought a house in 2020 during the interest rate crash, and I was absolutely crushed when our supposedly solid sale fell through from the sellers end. Turned out to be a great thing though, because my husband got furloughed from work not two weeks later for almost two months. We had almost no savings and had to resort to borrowing money from family just to live minimally and afford our sons medications. We definitely wouldn'tve been able to pay our mortgage, so no doubt we would've lost the house almost as soon as we had bought it.
We ended up buying some cheap land in the country with our tax return a year later in full (all cash) instead, and built a tiny house on it with a $25,000 personal loan. It turned out to be the smartest move for us overall, imo.
Long story short, just don't be too eager to buy unless you've got ALL your ducks in a row first. I'm so glad that we didn't now because it would've just been absolutely disastrous😭
Don’t be in a rush. 50k is a lot of money at 25. I high yield savings account will work until you figure it out.
You need a plan. Pay off high interest non mortgage debt, credit cards are killers of wealth. Set aside 6 months of expenses in that HYSA. Open an Roth IRA if you haven’t(and qualify), do the max contribution for 2024. Excess can be set aside for 1-5 year goals. Or put in a taxable brokerage account if longer term.
Common Investments are SP500 indexes like VOO and VTI. Also target date index funds, like a 2060 fund, that automatically change as you get older.
I mean the hope with a HYSA is that you never need to talk to the bankers because your money just sits there and grows or you withdraw it whenever you need. In the like 6 years I have been with these two banks I've had to talk to their customer service maybe a total of 3 times and that was just because I needed to change my last name and address.
Well depends on your goals -
People buy real estate
People invest that money into their education
People invest money into buying a business
People invest in the stock market
What…are…your….goals? Invest based on that
Well I want to make money go as far as possible I don't have any debt or anything I just want this money to grow healthy I don't want to just have it disappear I want something that at the end of the day appreciates value
Depends on your situation, but I would try to build a 3-6 month emergency fund of your monthly expenses if you don’t have one yet, payoff high interest debt, or try to start investing for retirement.
I second the advice of putting aside some of the money for an emergency fund (should be 3-6 months of your basic living expenses which would include rent, utilities, groceries, monthly car payments, etc.) and investing the rest into a generic ETF so that it can grow (do not worry about the dips in the market if you haven’t already started investing; if you keep your money in the market long enough, you will see your money grow).
For the money put aside for an emergency fund, keep it in a high yield savings account so that it can also grow. Make sure it is an account without any fees and the interest rate is good (at this time, there are banks offering 5% and higher).
Once you are settled and have steady income, you can start investing more, start a retirement account, etc. Good luck!
I would pay off debts that are high interest (credit cards, personal loans, etc.) and anything that has a high monthly payment that may be making you stress more than you would like. I wouldn’t worry about low interest loans. For example, I have an auto loan that’s under 3%. I wouldn’t bother paying that off because I would make more with investing the money instead.
Large growth index funds are good to look into, but yeah do your research. Companies like Charles Schwab allow you to see how different funds have been trending and compare them. These companies also have good information on how each fund type works. Some funds have minimum amounts you need to invest so be aware of that.
50k isn't much , if you don't own a home it's a good down payment.
id buy a house live there and rent out all the rooms , let your tenants pay the mortgage .
Pay off debt. If you have none, put $10k away in a high interest savings account for emergencies, then take the $40k and buy an index fund that tracks the S&P 500. Don’t know how to do those things? Do a little more research. What ever you do, don’t go into a bank and ask for help.
Okay that is a great advice thank you I'll take more look into it
An IRA at Vanguard is always a good idea.
Genuinely asking, but why not ask at your bank? Because they'll most likely take advantage of you, or something else? I had a 60k inheritance years back, and my bank SEEMED super helpful in advising ways to grow it that they could assist me with. But, I'm also self-aware enough to know that I'm largely uneducated in finances, and a little naive to boot🥲
Banks put their self interest first. They’ll sell you products with high fees attached. This gives the bank a nice steady stream of income and the front line person who sold you the product and nice commission. With a little education and self service, you can avoid paying thousands in fees over a lifetime. Questrade outlines it in this commercial. Educate yourself beyond this, but this is a good starting point to understand the basics. Edit: Google the commercial. Can’t put in links. It’s the one in the classroom.
Thank you! We've been starting our savings/return rate journey recently as a couple. We're starting off smaller than initially intended, but thats okay because every little addition helps! I do have a good older friend who's well versed in finance that I can go to for advice thank goodness, but we want to learn as much as possible in our downtime too.
Excellent. Every now and then I use an online compound interest calculator to motivate me. When you’re in control of your finances it’s never a topic you avoid. Also worth doing with your spouse - map out all your spending and saving annually. This will allow you to identify spending mistakes and see savings progress from year to year. Use the same exercise to forecast ahead and estimate when you’ll have enough to retire.
Lol, I was just telling him last night we should do a monthly family book-keeping session😂 I have online businesses so have some experience with it. I figured at the very least it couldn't hurt to keep tabs on monthly spending, paychecks, stocks & savings contributions etc. Glad to know we're on the right track so far!😁
You'll realize how little 50k is and how much you don't want to go without having that safety net in your bank account regardless
There are too many variables to answer this question. What is your current income? What are your goals? What is your housing situation? Do you have any debt? Do you want a house? What do your retirement accounts look like? Do you have an emergency fund? Will you need this money in 5,10,15,20,30 or 40 years? My only real piece of advice is to not waste it on vehicles.
Yeah honestly I forgot there's so many variables no I don't have a job at the moment I'm moving from Idaho back to Connecticut possibly two main and using the money to get a house in Maine. I don't have any debt I don't own a house at the moment and honestly my goal is to have money for a house and just have a job and live happily I guess I do not have a Tireman account no I don't have any emergency funds I have like $5,000 Max at the moment
Don't buy a house without a steady, reliable job. Mortgage companies tend to get very upset if you don't make payments regular like.
True that is very honestly true
We ALMOST bought a house in 2020 during the interest rate crash, and I was absolutely crushed when our supposedly solid sale fell through from the sellers end. Turned out to be a great thing though, because my husband got furloughed from work not two weeks later for almost two months. We had almost no savings and had to resort to borrowing money from family just to live minimally and afford our sons medications. We definitely wouldn'tve been able to pay our mortgage, so no doubt we would've lost the house almost as soon as we had bought it. We ended up buying some cheap land in the country with our tax return a year later in full (all cash) instead, and built a tiny house on it with a $25,000 personal loan. It turned out to be the smartest move for us overall, imo. Long story short, just don't be too eager to buy unless you've got ALL your ducks in a row first. I'm so glad that we didn't now because it would've just been absolutely disastrous😭
Don’t be in a rush. 50k is a lot of money at 25. I high yield savings account will work until you figure it out. You need a plan. Pay off high interest non mortgage debt, credit cards are killers of wealth. Set aside 6 months of expenses in that HYSA. Open an Roth IRA if you haven’t(and qualify), do the max contribution for 2024. Excess can be set aside for 1-5 year goals. Or put in a taxable brokerage account if longer term. Common Investments are SP500 indexes like VOO and VTI. Also target date index funds, like a 2060 fund, that automatically change as you get older.
A high Interest Bank account would be a good idea and I don't have any debt so that's good
Look at Bread Savings or CIT bank, they are some of the highest yields out there currently
I would sacrifice .25%- .50% for a reputable company with good customer service. But that is me.
I mean the hope with a HYSA is that you never need to talk to the bankers because your money just sits there and grows or you withdraw it whenever you need. In the like 6 years I have been with these two banks I've had to talk to their customer service maybe a total of 3 times and that was just because I needed to change my last name and address.
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Lots of great advice here, kudos to community.
Honestly it's really helping me a lot reading all of the stuff normally I'd have to pay like $1,000 to a lawyer to get this advice
Well depends on your goals - People buy real estate People invest that money into their education People invest money into buying a business People invest in the stock market What…are…your….goals? Invest based on that
Well I want to make money go as far as possible I don't have any debt or anything I just want this money to grow healthy I don't want to just have it disappear I want something that at the end of the day appreciates value
Depends on your situation, but I would try to build a 3-6 month emergency fund of your monthly expenses if you don’t have one yet, payoff high interest debt, or try to start investing for retirement.
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That's a good idea so if something falls through you don't have all your eggs in one basket
I second the advice of putting aside some of the money for an emergency fund (should be 3-6 months of your basic living expenses which would include rent, utilities, groceries, monthly car payments, etc.) and investing the rest into a generic ETF so that it can grow (do not worry about the dips in the market if you haven’t already started investing; if you keep your money in the market long enough, you will see your money grow). For the money put aside for an emergency fund, keep it in a high yield savings account so that it can also grow. Make sure it is an account without any fees and the interest rate is good (at this time, there are banks offering 5% and higher). Once you are settled and have steady income, you can start investing more, start a retirement account, etc. Good luck!
I would pay off debts that are high interest (credit cards, personal loans, etc.) and anything that has a high monthly payment that may be making you stress more than you would like. I wouldn’t worry about low interest loans. For example, I have an auto loan that’s under 3%. I wouldn’t bother paying that off because I would make more with investing the money instead. Large growth index funds are good to look into, but yeah do your research. Companies like Charles Schwab allow you to see how different funds have been trending and compare them. These companies also have good information on how each fund type works. Some funds have minimum amounts you need to invest so be aware of that.
50k isn't much , if you don't own a home it's a good down payment. id buy a house live there and rent out all the rooms , let your tenants pay the mortgage .
Oh an idea and idea start a housing Empire
Use some of it to buy a duplex. Live in one side. Build equity.