#FinancialPlanning #SavingGoals #InvestmentStrategies
Assess Your Financial Situation
At 21 years old, having $30k in savings is an impressive feat. However, it’s crucial to take stock of your financial situation to determine your next steps. Here are some key points to consider:
– Monthly income
– Expenses
– Debt
– Assets
– Financial goals
Create a Budget
Creating a budget is essential for managing your finances effectively. With a clear budget in place, you can track your expenses, prioritize your spending, and allocate funds towards your savings goals.
– Track your income and expenses
– Set spending limits in each category
– Establish an emergency fund
– Save for short-term and long-term goals
Explore Investment Options
While you may not have experience in stocks or a career job with a 401k, there are still investment options available to you. Consider the following:
– High-yield savings accounts
– Certificate of deposits (CDs)
– Roth IRA or Traditional IRA
– Exchange-traded funds (ETFs)
Build Credit Responsibly
Building a good credit history is essential for your financial future. With your new credit card, make timely payments, keep your credit utilization low, and monitor your credit score regularly.
– Pay your credit card bill in full each month
– Avoid carrying a balance
– Monitor your credit report for any errors
– Keep your credit utilization below 30%
Plan for Major Expenses
If you’re considering purchasing a car, it’s important to plan ahead and make informed decisions. Here are some tips for handling major expenses like buying a car:
– Research different financing options
– Save for a larger down payment to reduce interest costs
– Consider the total cost of ownership, including insurance and maintenance
In conclusion, with a solid financial foundation and a clear roadmap, you can continue to build your wealth and achieve your financial goals. By following these steps and staying disciplined with your finances, you can set yourself up for future success.
With 30k you can probably even put a down payment buy a cheap condo depending on your area and affordability.. surely would save you rent money. NFA
Read the wiki
You don’t pay rent and you’re spending half to buy a car for family. You aren’t as well off as you think. Get a full time career or go to school.
Earn more, save more. It may not be easy, but it’s pretty simple. Read the prime directive in the wiki.
If one of your parents is financially disciplined and is willing to add you as an authorized user to one of their existing credit cards, especially an old account, that’s going to help build your credit much faster. You don’t even need access to the card or the account.
Investing can also be pretty simple if you want it to be. Check out JL Collins’ blog or the companion book “The Simple Path to Wealth.” TLDR: you can build a diverse retirement portfolio using only one or two investments. Starting out, I’d say open a Roth IRA at Vanguard, add some money to it, and buy some VTI. Once you get to $3k, you can buy VTSAX (the same investment, but as a mutual fund instead of an ETF, which means you can choose how much you want to invest, down to the penny). Buy some now, buy more later, and don’t sell until retirement.
Someone else mentioned an advisor. Don’t pay anyone to tell you how to use your money at this stage in your life. Educate yourself. There’s a lot of free material out there. Get a library card and start going through the books mentioned in the wiki. The Richest Man in Babylon and The Millionaire Next Door are relatively quick and easy reads, highly recommended.
Before you do anything, I recommend reading The Simple Path to Wealth. I believe it’ll answer your questions and get you thinking about what works for you.
Increasing your earnings should be your focus
I would if I were in your shoes
1. Keep 3 months in a HYSA as an emergency fund. Since you’re living at home 3 months should be enough
2. Max out your Roth IRA each year
3. Use the rest of your money to figure out what you want to do career wise. Whether it’s school or improve your skills so you can get a higher income
You need to start earning more money. $17/hr is not sustainable if you want to live a comfortable life on your own (ie: not your parents’ basement).
Earn more money, maybe go to school for a trade or a career that is in demand. 30K seems like a lot but in reality it’s not. It’s a good start especially for being 21 because I didn’t have that at 21. But once you live on your own, pay rent and bills things are different and you realize 30k isn’t going to cut it.
Open a Roth IRA on fidelity and max it out every year. To keep it simple, buy ETFs or Index Funds like SPY and QQQ. Can also buy CD’s or open a HYSA. Also, try and get a credit card with good cash back rewards.
It’s crazy that there are people who need even a few dollars and can’t get a job yet people like you out here who have managed to save nearly every single penny they’ve made while working for three years. Don’t ask what’s next, just don’t brag about what u have on the internet. If u don’t know how to use ur money maybe it’s not meant for u. Asking what’s next is crazy. Go to school or something
Open up a Roth and buy the S&P 500 or total stock market. A goal should be to max it out with biweekly buys. IDK why you are not working full time if not in school.
Your first priority is doubling your income. You should take that money and invest in yourself.
Especially since you’re still living with parents and have minimal bills. Right now is key to how easy your next 20 years of life is gonna look like.
Go back to school, or learn a trade, or find a career you can rely on, something. Just know that $17 an hour with no retirement option is not gonna cut it here in 5-10 years.
Find a serving job at a high end place. Make $300-400 a night and work 5-6hours or less. More money and less time. Then I agree with @slicedeggrolls HYSA and max out 401k if u have. Vangaurd is a great spot to start one
Don’t borrow money for a car just to earn credit. That’s just throwing money away in interest for nothing. You can build credit by opening a credit card, using it for all of your routine purchases, and paying it IN FULL every month. You don’t pay any interest if you pay in full.
You need to work full-time and get health insurance first. Save your money and put it in a high-yield savings account.
When I was 23, I had $15,000. I moved out and it dwindled down after 2 years of paying apartment rent, going to college and going out with friends. I couldn’t afford a mortgage until I got married. The loan officer told me a single woman making $16 per hr. was not enough to get a home loan. So it’s better to save your money and live at your parents for at least another year. Then move out with a roommate to save money on the rent.
Try to go to college at least part-time. Having a degree helps get a higher paying job.
There are many many free materials out there that can help you. But I recommend you try this free training about [investment and wealth](https://keystoneinvestor.com/optin-24?utm_source=ds24&utm_medium=email&utm_campaign=%5BAFFILIATE%5D#aff=pmonicak), and you’ll decide what you do from there. It helped me a lot, you’ll thank me me later.
You don’t need a finance a $13,000 car to build your credit. I’ve built my credit up to the 800s off of a single credit card and phone bill, which I pay off in full every month.
If I were in your shoes, I would purchase a $5,000 car in cash to avoid the burden of monthly car payments. $5,000 could get you a solid used Toyota that will last for years to come.
Place the rest of the money into a HYSA so you can earn interest on it while you learn more about investing and evaluate your long term financial goals.
I was in your shoes while in college and I got a new car (also put about $13k down), and I ended up putting about $10k into an HYSA. The HYSA was a game changer that I wish I was aware of sooner. The rest of the money I used to get married, move out from home, and start buying furniture/getting settled/etc.
If you have any plans to move out within the next 1-2 years then I’d recommend keeping aside at least 10k in a HYSA. If you put everything into a retirement account it won’t be as accessible if you need it. If you don’t have plans for much then I agree with the commenter who said keep a 3 month emergency fund and then max out your Roth IRA
So you make in a year (17×30)×52 = 28,560$.
Living off your parents .
I think next is growing up, financing yourself .
Then if you have money left, check Potential options.
For now, save that money for you independence.
You’re doing pretty great for a 21 year old. Back when I was 21, there were no HYSA’s that yielded 4% + so you should take advantage of that.
> I just started a credit card with discover
Always, always plan on paying off your credit cards – full statement balance on or before the due date. This is very important. Nothing to do with credit scores or reports or what have you, it’s about meeting your obligations with your creditor.
Personally, I think stocks can wait but if you are really wanting to get in and can open a brokerage account (or if your bank has a brokerage option), just buy a fixed amount of whatever SP500 mutual index fund you can and, if able repeat that every month.