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I'm almost 22 years old and unmarried. After livin...
# budgeting
a
I'm almost 22 years old and unmarried. After living necessities, maaser, 20% savings, and discretionary spending, I'm left with 12-22% of my yearly income. What should I do with it?
🧡 1
m
Depends what your long term goals are.
a
So far, only a chasuna, house, and car.
m
Do all your savings cover all those things? This would be a great use case for https://frum.finance/planning since i don't think anyone has enough info in the question to know if your savings rate should be higher or lower
If you are saving enough for all your long term goals, then I would say tzedaka, enjoyment, or early retirement would be your 3 options.
Do you mean 20 percent savings or 20 percent investing?
a
Right now, just high-yield savings, but I'm looking into investing options.
m
https://frum.finance/chart where are you here?
a
13
m
Then until you have that amount saved up in your HYSA I would stick to that as your focus.
b
Often first investments are done in a retirement account. It's not clear if that is part of your savings or if just the house, chasuna and car are with the hysa. If not already, you should be investing in retirement also.
m
I would personally disagree. If he is on step 13, then we need to get that emergency fund fully funded before he starts looking at retirement investing.
b
Step 10 is to start investing in a 401k to get a company match; even without a match, putting a little away for retirement while you are very young is also beneficial. Doesn't have to be a lot, but part of the savings plan, since he already is saving.
👍 2
m
If he has a company match, then I would agree (as my chart shows)
a
Thank you all!
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