r/Money • u/[deleted] • 29d ago
Saved up 120k by the age of 22 don't know what to do
[deleted]
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u/Just4Ranting3030 29d ago
Just keep doing whatever you're doing, split it up into HYSA and some CD's, an index fund, etc. and then keep like $10-30k of it in checking for your bills (or whatever your cost of living is, minus the income you'll bring in for the rest of the year to cover that)
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u/Ok_Computer_1420 29d ago
Check out compound interest calculator and see how much 100k is in 30 years in vested in a low cost index or ETF. Conservatively at 6% that’s over 600k with no additional savings. You’re on your way to an early retirement if you play the long game and keep saving
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u/werner-hertzogs-shoe 29d ago
Honestly, just keep it up. Don't put it all in retirement accounts so you can access some of it if needed, but just let that compound and keep adding to it. I don't really view houses in a lot of markets as a great investment at the moment once you are factoring in a 7% mortgage, and they can really tie you down (you also have proven that you can save money without it being forced). My ex has a great job (120k+ a year) and she can barely afford the house she bought a couple years ago at 6%
It's worth noting that at your age the best thing you can invest in is a career that has the best balance of something that resonates with you, high income, lower demands (this isnt important if your work is something you want to make your life about) and long term sustainability as that is really what will make your life work. Also dont forget to make room for joy, and don't be afraid to invest in that, you're likely not going to have the same opportunities for travel and other things in your middle age
If you see a house that makes sense, or a piece of land that could be a good choice though, just dont be pressured to commit to that.
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u/xjerielle 29d ago
Hysa/investing is solid advice but if it was me, I would take risks while young and start a business
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u/Successful_Hold_9048 29d ago
Keep investing. Don’t fall for schemes, gambling or addictions. And don’t forget to keep living.
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u/hwang_suyoung 29d ago
Definitely open up a ROTH IRA Account through Fidelity.com and save a good bit of your money there. For the Roth IRA I’d probably save more than half of what you have. Because while you save it, you can also invest it into Index Funds. Investing into Index Funds rather than one company is best because it’s less risky, and Index Funds have always just steadily gone up. It helps your money grow rather than lose value to inflation. Just for a small example, I’ve gained a small amount of profit in less than a week with my money just sitting in the S&P 500 Index Fund doing nothing. Here’s a video that tells you about all of that stuff, and the young lady even shows you how to invest at the end: https://youtu.be/cnjnJYr-8dk?si=O1dDfBlbatTKyTrc
I’d also look into opening a High Yield Savings Account. HYSA is more so for short term financial gains compared to Roth IRAs which are used for long term investments. But instead of the other half or so your money sitting in savings collecting 0.01% interest, it can collect 4% interest. Here are 2 videos that gives a further breakdown of HYSAs: https://youtu.be/UCjP87-u74Q?si=1WQT4rAwdjDoIPtY and https://youtu.be/8mCYXuGzM-U?si=L_MMfsrM4GwXYrnL
Good luck! Do extra research before making a decision on anything I or other redditors suggest :)
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u/Upset_Researcher_143 29d ago
Live. Figure out what you like in life. Go travel if you can. Not a lot of young people can afford to see the world on their own dime. Pick up some hobbies and see if you like any of them. The point is, if no good home buying or other capital purchase opportunities are available, spend a little money on yourself.
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u/rddtr571 29d ago
Keep back a little cash and invest the rest. A conservative mutual fund like SPY or QQQ. Keep adding to it and just watch it grow.
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u/Existing_Demand5765 29d ago
Zelle me 20 bands real quick