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I'm 20, at University, have ~10K saved up, no student loans, no debt or necessary expenses. I am planning on studying abroad this Spring semester and am going to travel while abroad. I'm majoring in a profitable in-demand field, have a paid internship for the summer and will most likely have a job when I graduate. I will make ~8K this summer and I got a relocation stipend to cover my living expenses. Since I don't have any necessary expenses, I do not have an emergency fund and do not know how much money I really need to save. I currently have a 1.5% savings account with most of my assets, with the rest in a checking account. I don't know what I should do with my money. I'm not using it, and would appreciate having more of it when I really need it. Is it better for me to invest in a Roth IRA, invest aggressively in stocks or look into CD's/Government bonds?
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Jan 22, 2010 01:43
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| # ¿ Apr 28, 2024 16:18 |
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KarmaCandy posted:Will you not be paying for that "traveling while abroad" this spring for some reason? If you're going to be paying for it then you will need at least some of that money to be free and available to you, so you wouldn't want it locked up in a CD. I'm sorry, I wasn't clear on this point. I'm planning on traveling and will be paying for it myself. I did, however, not count it as a necessary expense because there's no set amount I HAVE to pay. I'm still working to figure out how much I'd like to budget for travel, and it kind of depends on what else I want to do. Currently, I'm still considering my financial options but I probably won't commit to anything until I know how much I'll spend abroad. KarmaCandy posted:When you finish school will you still have no expenses if you don't get a job right away? Just because you have no current expenses doesn't mean you can't get an estimate as to how much you would need - Any particular place you want to live? How much does rent usually go for there or would you be okay with moving back in with your parents? Emergency funds are also good for other things - injuries that insurance doesn't cover, major car repairs if you have a car, etc. I'm finishing my degree a semester early in the fall, so I have some financial cushion with scholarships, college funding, etc. Most of my job prospects are on the West Coast, which tends to be expensive but I'll only go out there if I get an offer. I understand what you mean by an emergency fund-- I also work a part-time job during school which makes about 2K/semester which tends to cover incidental expenses. I didn't include it in my original post because I won't be working while abroad. My short term goals would probably include more traveling, but they'd be much smaller in scale (<2K) and not need as much budgeting. I'm also thinking about taking some time (1-2 months) after graduating to travel, but I'd only do that if I commit to a job offer. KarmaCandy posted:Once you've got an idea as to discretionary spending while abroad/budgeting for travel/an emergency fund for if you don't find a job right away, like everyone else said - I'd open an IRA and invest the rest in there. I'll try to sit down and figure out a realistic budget before I start to travel-- it's just a weird feeling to spend money after I've been saving for so long. Most of my plans revolve around budget travel, it's just a question of how much total I want to spend. Thanks to everyone for the advice! I will probably invest into an IRA during or after the summer when I have a clearer idea of my finances.
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Jan 22, 2010 06:03
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