#FinancialAdvice #MoneyManagement #Investing
Hey everyone! 👋 I could really use some advice on what to do with $5000. I admit, I am financially illiterate and feeling a bit overwhelmed. Here’s a bit more about my situation:
– I have no retirement savings 😬
– I want to make the most out of this money 💸
– Any advice or recommendations would be greatly appreciated 🙏
One possible solution that I’ve been considering is:
– Investing in a low-cost index fund to start building a retirement fund 📈
What do you think? Any other suggestions or tips? Let’s chat! 😊 #FinancialLiteracy #InvestmentTips
There is a lot more context needed to answer this question.
How much do you earn per year?
What are your long and short term goals?
How much do you have saved and invested?
How much are your monthly expenses?
Do you have any debts? What are their interest rates?
Are you struggling with cash flow issues?
Do you have an emergency fund? Your best bet is to probably open a High Yield Savings Account and put that money in there for emergencies.
If you do have a fully funded e-fund and are currently employed look into opening a Roth IRA.
Drop it in an HYSA and don’t touch it
lots of options, but the best is likely a high yield savings account at least while you learn options and larger investing info. earning 4-5% for a short time is reasonable and wise. then you can answer all the questions the other poster listed with actual thought and action.
Don’t spend it unless you’re in debt. Open a high interest savings account and park it there.
All else fails, put it into a HYSA (high yield savings account) won’t make a ton of money off it but more than it would sitting in a regular savings. I use SOFI HYSA with a 4.6% on my savings.
HYSA until you learn how to properly invest it. Go for one earning around 4.5-5%. Also, don’t touch it, this is your emergency fund. Let it sit there until you needed it.
UNLESS: you have debt. If you have credit card debt, pay it off. If you have other high interest debt, pay it off.
Spend $200 on financial literacy books.
That is the best investment you could do
Buy The Psychology of Money and read it. Or the simple path to wealth
Imma be honest with u
Lend me 3k of that n I’ll pay u bck plus interest in 3 months
Two words: Number 23, roulette