#WhatToDoWith$2000
#### Consider a High-Yield Savings Account
If you’re looking for a safe and secure option for your $2000, a high-yield savings account may be the way to go. With interest rates that are typically higher than traditional savings accounts, you can watch your money grow over time. Here are some things to consider when choosing the right one:
##### Research Different High-Yield Savings Accounts
– Take the time to compare different banks and financial institutions that offer high-yield savings accounts.
– Look at the interest rates, fees, and minimum balance requirements for each account.
– Consider online banks, as they often offer higher interest rates due to lower overhead costs.
##### Consider Accessibility and Convenience
– Look for a savings account that offers easy access to your money when you need it.
– Consider whether the bank has a mobile app or online banking options for convenient account management.
– Check if there are any ATM fees or restrictions on withdrawals.
##### Think About Safety and Security
– Make sure the bank is FDIC insured to protect your money up to $250,000 per depositor.
– Look for additional security features such as two-factor authentication to keep your account safe from fraud.
#### Explore Other Investment Options
If you’re open to taking some risk with your $2000, you may want to explore other investment options that have the potential for higher returns. Here are a few ideas to consider:
##### Invest in Stocks or ETFs
– Consider opening a brokerage account and investing in individual stocks or Exchange-Traded Funds (ETFs).
– Do your research on different companies and industries to make informed investment decisions.
– Keep in mind that investing in the stock market comes with risks, so be prepared for fluctuations in the market.
##### Start a Side Business or Freelance Gig
– Use your $2000 as seed money to start a side business or freelance gig.
– Consider your skills and interests when deciding what type of business to pursue.
– Look for ways to monetize your hobby or passion to make extra income.
### Conclusion
Whether you choose to put your $2000 in a high-yield savings account or explore other investment options, it’s important to make a decision that aligns with your financial goals and risk tolerance. Take the time to research and consider your options before making a final decision. Remember, it’s never too early to start thinking about your financial future.
Why not add the 2k to the Roth IRA? If you are early 20s that 2k should grow to something like $110k+ by the time you retire. Roth IRA has added bonus of being able to be used as source of emergency savings since you can withdraw your contributions (eg, the $2k), but not the growth, anytime without tax or penalty.
Add it to your IRA money added while young makes a huge difference.
Contributing $50 a month is not enough to retire on. You also just graduated so that means you most likely have….$100 in it.
If you don’t need it right away, put it towards retirement. It’ll give you a much greater return than anything you do with the money now.
Do you have an emergency fund?
Do you have any debt?
If you have zero other savings just keep it in a hysa. Pick one that doesn’t charge minimum balance or withdrawal fees.
You should really have some liquid cash built up.
Max out your Roth IRA every year so you don’t stress about retirement.
You know your situation best in terms of your current expenses and what your expenses will be in retirement, but just wanted to reiterate the concern for retirement. If you can only contribute $50 to your Roth IRA each month, then that seems to imply that you may be living somewhat paycheck to paycheck. I also have a state job and having done my pension estimate, I know it is 100% not enough for me to retire on by itself, and who knows what the state of social security will be in 30 years.
Our goal should be $500+ monthly to the IRA (it would be $584 monthly to max it in a year).
Consider splitting it: half high-yield savings, half paying off any high-interest debt.