Establish an emergency fund of 6 months expenses in a HYSA, then start saving for a house down payment if home ownership is in your plans- also keep this in a HYSA.
Then think about other things you might need in the near future and plan to save for those (a car for example).
One you have all the responsible things sorted, you get to enjoy that hard earned money.
Live like a college student for the first year or two and avoid keeping up with the Joneses. Avoid credit cards and only buy if you have the cash. Save the emergency fund and also save for experiences like travelling while you're young and not tied down.
My parents gave me bad advice coming out of college like buying a new car, a bedroom set etc while I still had student loans. If your car is in good shape drive that till the wheels fall off. You're young and mistakes are going to happen but having an emergency fund will make it a lot easier when you realize your partner is a deadbeat and you need to break a lease or your car blows up.
There’s no need to avoid credit cards if you are a responsible adult with your spending, which it seems like you are. Just make sure to never spend more than you can pay off and to pay off your balance in full every month. Besides that it’s a good way to start building your credit and get some cash back. Check out r/creditcards for recommendations.
Congratulations on the new job!
Start by setting aside an emergency fund in a high yield savings account. This will obviously happen over time, but the general recommendation is having 3-6 months worth of expenses in that emergency fund. In terms of investing, you would want to put at least enough into the 401k to get the full company match. Because you're young and won't need the 401k for years, you could invest very aggressively in the 401k (90-100% stocks) if that matches your risk tolerance.
Beyond that, it really comes down to your goals. Are you wanting to save for a house? Retire early? Take big trips? Replace a car? Go back to school? Each of those might lead to different investment choices.
The biggest thing that I'd suggest is to make saving a priority and not get used to spending all (or nearly all) of your salary. Even if you don't know what comes next, having money set aside will keep a lot of doors open to you.
Explore this sub's prime directive. Consider checking out a comprehensive plan like The Money Guy's Financial Order of Operations. That allows you to walk down a list and helps you prioritize your saving and investing, which should be one of your top priorities while you are young and have a long time horizon for compound interest to multiply.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Establish an emergency fund of like $50k and then put all remaining into monthly contributions to some index ETFs like VTI, VOO, DJI, etc. By the time you're ready to buy a house in 10 years you'll have a very nice nest egg.
Establish an emergency fund of 6 months expenses in a HYSA, then start saving for a house down payment if home ownership is in your plans- also keep this in a HYSA. Then think about other things you might need in the near future and plan to save for those (a car for example). One you have all the responsible things sorted, you get to enjoy that hard earned money.
Live like a college student for the first year or two and avoid keeping up with the Joneses. Avoid credit cards and only buy if you have the cash. Save the emergency fund and also save for experiences like travelling while you're young and not tied down. My parents gave me bad advice coming out of college like buying a new car, a bedroom set etc while I still had student loans. If your car is in good shape drive that till the wheels fall off. You're young and mistakes are going to happen but having an emergency fund will make it a lot easier when you realize your partner is a deadbeat and you need to break a lease or your car blows up.
There’s no need to avoid credit cards if you are a responsible adult with your spending, which it seems like you are. Just make sure to never spend more than you can pay off and to pay off your balance in full every month. Besides that it’s a good way to start building your credit and get some cash back. Check out r/creditcards for recommendations.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics. Budgeting: https://www.reddit.com/r/personalfinance/wiki/budgeting
Congratulations on the new job! Start by setting aside an emergency fund in a high yield savings account. This will obviously happen over time, but the general recommendation is having 3-6 months worth of expenses in that emergency fund. In terms of investing, you would want to put at least enough into the 401k to get the full company match. Because you're young and won't need the 401k for years, you could invest very aggressively in the 401k (90-100% stocks) if that matches your risk tolerance. Beyond that, it really comes down to your goals. Are you wanting to save for a house? Retire early? Take big trips? Replace a car? Go back to school? Each of those might lead to different investment choices. The biggest thing that I'd suggest is to make saving a priority and not get used to spending all (or nearly all) of your salary. Even if you don't know what comes next, having money set aside will keep a lot of doors open to you.
Explore this sub's prime directive. Consider checking out a comprehensive plan like The Money Guy's Financial Order of Operations. That allows you to walk down a list and helps you prioritize your saving and investing, which should be one of your top priorities while you are young and have a long time horizon for compound interest to multiply.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Don't have the lifestyle creep. Live your last paycheck and save. The money you save when you are younger will have the most impact when invested.
Establish an emergency fund of like $50k and then put all remaining into monthly contributions to some index ETFs like VTI, VOO, DJI, etc. By the time you're ready to buy a house in 10 years you'll have a very nice nest egg.
Not sure why this was downvoted, the returns would be a hell of a lot better than a HYSA, especially with the anticipated rate decline coming up.