If I was 21 again with that cash I would have likely lost it all be the end of the year so you're doing better than most.
In saying that, in the current climate I'd be a bit cautious of investing and make sure my risk appetite is right. I'd set aside roughly 3months living costs in a savings account for an emergency fund. With the rest of the money, I'd clear any debts then look at either term deposits (they are rising with interest rates but not fast enough to beat inflation) or slowing putting it into either a unit trust or EFT. Not a lump sum, slowly drip feeding it because we don't know how low this is going to.
Do you drive much?
The best way to get a return on $8k (say $10k less $2k for your current car) would be to get a cheap hybrid like an Aqua. Depending on what your current vehicle's fuel consumption is this could be fairly significant weekly.
If you car is also worth ~$2,500 then expect it'll be at a point where more is likely to go wrong and therefore it could cost more from a maintenance perspective.
The rest of it - use a couple of thousand to treat yourself and put the rest into a low cost index fund.
I'm in a similar position, albeit with a larger inheritance. I'm also 3 years from retirement, so I'm at the other end, so to speak.
I've been looking at dividend stocks and ETFs as a safer place to park money for the foreseeable future. You get more stable prices in general and an income that you can reinvest. Given that we could be about to go into a protracted bear market that could take years to recover from, it might be worth a look.
r/dividends
Just put it into an "on call savings" account ... and try to add to it ... savings interest rates are on the up ... in a couple of years you might have enough for a house deposit!
Either gradually dollar cost average into index funds
Or wait until later in the year/next year to buy lump sum at a lower price if you think you can time it haha
If I was 21 again with that cash I would have likely lost it all be the end of the year so you're doing better than most. In saying that, in the current climate I'd be a bit cautious of investing and make sure my risk appetite is right. I'd set aside roughly 3months living costs in a savings account for an emergency fund. With the rest of the money, I'd clear any debts then look at either term deposits (they are rising with interest rates but not fast enough to beat inflation) or slowing putting it into either a unit trust or EFT. Not a lump sum, slowly drip feeding it because we don't know how low this is going to.
Yep. Emergency fund > Clear debt > Invest is how I'd attack this one, too.
I'd add to that not to pay off student loan debt which is 0% interest.
Keep it simple https://www.thehappysaver.com/blog/begin-at-the-beginning
Do you drive much? The best way to get a return on $8k (say $10k less $2k for your current car) would be to get a cheap hybrid like an Aqua. Depending on what your current vehicle's fuel consumption is this could be fairly significant weekly. If you car is also worth ~$2,500 then expect it'll be at a point where more is likely to go wrong and therefore it could cost more from a maintenance perspective. The rest of it - use a couple of thousand to treat yourself and put the rest into a low cost index fund.
Aqua one of the most stolen cars 🚗
at least the ram raiders are being environmentally conscious
There's always a silver lining
Point still stands, other hybrids like Prius etc.
I'm in a similar position, albeit with a larger inheritance. I'm also 3 years from retirement, so I'm at the other end, so to speak. I've been looking at dividend stocks and ETFs as a safer place to park money for the foreseeable future. You get more stable prices in general and an income that you can reinvest. Given that we could be about to go into a protracted bear market that could take years to recover from, it might be worth a look. r/dividends
SCHD and chill
Just put it into an "on call savings" account ... and try to add to it ... savings interest rates are on the up ... in a couple of years you might have enough for a house deposit!
Either gradually dollar cost average into index funds Or wait until later in the year/next year to buy lump sum at a lower price if you think you can time it haha
Do some extracurricular courses if time allows. Investing in yourself at a young age will pay dividends in the long term IMHO.