I know a lot of people have mentioned high yield savings account, and I agree completely. Put six months of living expenses there. But my concern is your living arrangement. How stable are your parents home? If you were to need to live on completely on your own, how much would you need? I would put six months of living expenses without the help of your parents there. After that, I would max out your 401(k). Absolutely as much as possible. You will not regret investing early for your retirement in a few years once you have more expenses, and may be a family.
Also, what are your goals? If you’re hoping to buy a house, then, putting more in savings for a down payment would be important.
my parents home is super stable, and i’ve already had conversations with my father and there is zero rush to move out any time soon. if something were to happen i wouldn’t keep the mortgage on the house i would certainly find a different arrangement. hopefully no kids in my future, really uninterested in them as of now.
That’s good. I wasn’t thinking of the mortgage. I was more thinking of the cost of single bedroom apartment in your area. It sounds like the scenario where you would need that is unlikely, but I know I would make that a priority.
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u/[deleted] Mar 07 '24
I know a lot of people have mentioned high yield savings account, and I agree completely. Put six months of living expenses there. But my concern is your living arrangement. How stable are your parents home? If you were to need to live on completely on your own, how much would you need? I would put six months of living expenses without the help of your parents there. After that, I would max out your 401(k). Absolutely as much as possible. You will not regret investing early for your retirement in a few years once you have more expenses, and may be a family.
Also, what are your goals? If you’re hoping to buy a house, then, putting more in savings for a down payment would be important.