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Monday, June 17, 2024
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24 Y.O HAS $60K IN SAVINGS, HAS NO DEBT & ABOUT TO FINISH DEGREE, WANTS TO BUY HOUSE

I don’t know what to do with 60k in my savings account.

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I’m 24 and have a lot of money sitting around. (I’ve always been low income and this is a lot for me) I don’t know how to invest it or where to do it.

But my goal is to buy a home within 4 years & finish my masters degree with no student loans. I’m halfway done with my degree & I currently have no debt/loans and I live rent free with my family.

I don’t know if I should put this in a high yield savings account? Or If anyone has a better idea I’d like to hear it.

Netizens’ comments

  1. Both of your goals are short term and might require all or most of that $60k. So protect it. Don’t invest it. “High yield” savings accounts have been criminally slow to adjust to current interest rates.
    Eventually, spend your savings on a master’s degree and/or a down payment. Once those goals are achieved or are 100% accounted for, start saving for longer term goals like retirement. If you have earned income, divert at least some of it to retirement savings now.
  2. Keep $5,000 in savings as an emergency fund, and put $55,000 in an index fund. An index fund just has a tiny piece of 500 or 1000 or 2000 different stocks so it just goes up with the stock market (which has always been a good long-term investment) and you don’t have to worry about picking individual stocks and companies. And you can sell it at any time.
  3. As others mentioned, keep your powder dry. You will likely want to use some of this cash in the next three years for student loan, debt repayment, car loan repayment, etc.

Editor’s note: Standby, insurance agents gonna be coming for you in 3… 2… 1…

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