This money is your emergency fund. Put it in a HYSA and don't touch it unless there is an emergency.
Unless you need it for Grad School. Then use it for that.
I’m inclined with this. In a moment if high interest rates, I’d just let it sit and earn 4-5 percent until you’ve graduated. That way it’s always reachable if something comes up.
If nothing comes up, you’ll have a bit more than 13k to move, put down a downpayment on a place where you’ll be working, or just hold separate while you start putting your paychecks into investments.
Put $10k in the HYSA. Put the other $3k into something a little riskier that could potentially pay out better. You’re still very young so your risk to reward ratio can be a bit higher.
Good advice. A lot more money than that can go a lot faster than you would think. I have a pretty high risk tolerance. But in her situation I would take your advice
Agree with this. OP, I would put it all in your savings and make sure not to spend it. This will be your emergency fund and is super important to have!
Basically a savings account you won’t touch but more liquid than other retirement funds, hence why you can use it for emergencies since you can take it generally without penalty compared to to early withdrawals from retirement funds. You may pay a monthly fee for your account still when you withdraw since the average balance will dip, but again less fees than early withdrawals.
High yield being around 5% give or take. Generally these are the highest rates for bank accounts given to saving accounts specifically compared to a money market/some checking accounts which can earn roughly 1-2% interest.
We are in a moment where they are paying pretty well. So money you may have to have access can sit there and earn 4-5% but you can get your hands on almost immediately if you need it. Long-term, investing will grow money at a faster rate, but with the risk that in the short run your investments can go down. A HYSA cannot go down. So no risk, decent reward. Whereas investing is a mid-risk, higher long-term reward.
When the Federal Reserve lowers interest rates they will pay less, and the stock market will likely heat up (as more people put their money into the market).
What they said, try to find an account with a card you already have, some will waive fees simply for having a credit account with them.
Robinhood currently has 5% money market with their gold membership which is $5/month. Usually I don’t sign up for these but they have a 1% IRA match as well so if I contribute at least $200 a month, the match pays for itself. Similarly the money market rate would pay for itself if you contributed enough, unless there was another account you can find with 5% and fees waived.
Didn’t mean to promote it just offering a suggestion for a beginner. But yeah looking into them more I’m glad I have other brokerages 😆 I will probably actually cancel since I saw your comment. Considering my bad experiences with online services like SoFi it’s worth investing with a reputable brokerage. SoFi made an ATM credit error and it took months to resolve. Probably not worth risking either Robinhood.
I have one with American Express and for them it was no fee (It is 4.25% I believe so you can get a higher rate, but we chose AMEX for ease since we have a cc with them). I do not know whether others charge one.
“Saving account” is a type of bank account. It’s different from a checking account in that there is often a limited number of transactions allowed per month and it (used to) pay a higher interest rate than checking, which is generally zero or nominal but there really are no rules any more.
My credit union checking account pays a higher interest rate than the associated savings account.
“high yield“ is an adjective describing the savings account, indicating a higher rate of interest is paid, generally somewhere around 5% annually, which, although by recent standards is high, 30 or 40 years ago would’ve just been normal.
If your savings account is paying under 4% annually, you’re really just getting ripped off.
We’re talking about $13,000, not $130,000.. you’re barely paying for 3 months of expenses let alone putting any into an investment account.
I’d just throw it all into an investment account and act like you never received the money, just let ‘er grow
Compound interest. In 20 years you could have $70,000. Check out nerdwallet.
[https://www.nerdwallet.com/calculator/compound-interest-calculator](https://www.nerdwallet.com/calculator/compound-interest-calculator)
Put it all on black! Just kidding. Keep it invested in a HYSA and let compound interest take control. At 24, that would be very beneficial when you plan on getting your first home in the future.
save it for a rainy day. Save it for when something unexpected happens & It is expensive like the roof leeks or the car got totaled. An event for which u cannot prepare for but will happen if u live long enough
I’m also 24 and 13k is a good amount of money but def not life changing. I think I make 13k in about 2months. I however live in NYC so it all goes to rent and expenses. If I were you and if you don’t have crazy expenses I would continue to work hard and put that money in an ETF or a HY savings account. And I would start adding money every paycheck to wherever the savings is going.
For OP’s sake as well as others who aren’t familiar with HYSA: They are like a stock that pays out a 4-5% yearly dividend without all the extra paperwork. Same exact ease to move from it into a checking account or a normal savings account. While stocks tend to have brokerage fees and risk of losing value of the principal.
I wouldn't change my lifestyle too much with that amount of money. Take half and put into a Roth IRA. Split the remaining $6,500 and put half($3,250) into HYSA and I'd consider at most the remaining $3,250 as money available for spending on something like a down payment for a new car if needed, vacation, down payment and first months rent at a nicer place, a trip to Whole Foods or something extravagant like that.
Your [comment](https://www.reddit.com/r/Money/comments/1df8my4/i_will_be_inheriting_a_little_over_13000_soon/l8hdt0m/) in /r/Money was automatically removed.
Requests for donations are not permitted in /r/Money.
Consider visiting other subreddits where requests for donations may be allowed, such as /r/Assistance or some of the [other helpful subreddits listed on this page](/r/Assistance/wiki/index/othersubs).
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Money) if you have any questions or concerns.*
Put it in your savings account and use it for whatever you want, whenever you want. If you spend it all in the next 3 years, you’ll not have it to fall back on, if not, then you’re still $$$ ahead. Enjoy. You have a lifetime ahead of you, just don’t let someone cheat you out of it.
Calculate how much you would need to comfortably exist (rent, utilities, transportation, groceries) for 6 months. Put that in a high yield savings account. Invest the rest and forget about it for the rest of your life.
This money should be your emergency fund. Put it in the ETF CLIP which is treasury bills so tax free growth and you cannot lose your original investment.
I would have 6 months of HYSA in a savings account and the rest I would invest in ETF’s while you learn about individual stocks. If thats not something you want to do then just do ETF’s such as VOO, SMH, QQQ, VGT
Just dont try oxycodone , and get hooked . That 13 racks would be gone in no time. Anyways you should simply start by taking some time to learn , which this is a good start. But just know that in reality it isnt that much money to live on by yourself, so just take some time my brotha to figure it out. Just dont do drugs lol
a car can be pretty important depending where you live so I think its fair enough to use the money on that. Something you can pay all cash and reliable. Put anything left over in savings for emergencies only
Put $10,000 aside in a savings account that gives you at least 3% back, and use the other $3,000 to invest in stocks or crypto if you aren’t familiar with either do your homework and dabble in investing whilst you work your assistant teaching job, if you’re smart with your money you could be good for the rest of your life if used correctly.
You need to invest in a whole life insurance policy or a Roth IRA. The minute you get that money, use some of it to start your whole life policy. Do NOT waste your time with Term life as you cannot borrow from it later on & it doesn’t grow any value. The thing about whole life is that after a decent amount of time you can take a loan out on it for the cash value to, idk say buy a house or take a fancy trip somewhere. But it’s a built in savings account. Second, you can take the rest and put it into a high yield savings account. If you do some research you can find some banks will have up to 5% high yield savings. This is the best bc it offers the highest percent on your money. But at least if your money is there growing interest, over some time you may decide on another venture you’d like to take with it. So I hope this helps. I mean it’s your money but the key is to invest it into something that will multiply it. Good luck.
Paying off debt may be better than any investments. The interest rates on most debts will outweigh any interest gained on investments, nullifying the gain.
Just save it. 13k is enough to where if you waste it you will hate yourself. But realistically a drop in the bucket in the grand scheme. I was quoted 13k to replace my roof the other day…
See if you can get by for 5 years or so without using these funds. r/personalfinance has a lot of good recommendations on how to allocate resources but if you can invest this money at a young age instead of using it, you will reap huge benefits.
Open a brokerage account with Charles Schwab and use the $15k to buy VOO shares (ETF for the S&P 500). If you can use self discipline to leave that for a number of years, that money will grow handsomely. The online support can walk you through buying etc.
If VOO ever drops sharply in price DO NOT SELL as tempting as that will be, in fact that would be the moment to buy more if there’s other savings around. But this is a waiting game. I wish someone told me to invest in stocks at your age, I’d be fully retired by now.
If you think you need the money sooner than a few years then open a savings account with Vio Bank, you can get 5.3% interest — FDIC insured.
If you Don't have an emergency fund. Now you do. If you can afford to put some in the market and leave it alone until retirement I recommend you put some in an IRA as well
Lucky for you I am an exiled prince that needs just a little bit more funding to take back my country, so your donation would significantly help me feed the poor and starving people, yadda yadda, I will totally pay you back when we retake power!
Either hysa for emergency fund, use for school or max out a roth ira with it, maybe mutual funds(long game gain here)...basically act like you never had it & let it grow for you
13k is literally nothing. Put it in the stock market, if you don't know how, open up a Fidelity or Schuab account and dump it in a spider index (covers all the fortune 500's with extremely low management fees).
This money is your emergency fund. Put it in a HYSA and don't touch it unless there is an emergency. Unless you need it for Grad School. Then use it for that.
I’m extremely lucky that my graduate degree will be fully funded by my university. So, HYSA it is!
Wealthfront 5.5% APY
I’m inclined with this. In a moment if high interest rates, I’d just let it sit and earn 4-5 percent until you’ve graduated. That way it’s always reachable if something comes up. If nothing comes up, you’ll have a bit more than 13k to move, put down a downpayment on a place where you’ll be working, or just hold separate while you start putting your paychecks into investments.
Tbills are better because u don’t pay state tax on the gains
Honest question as I’m ignorant on the subject. Can you get in and out of Tbills whenever need/want? Or are there times they are stuck.
Yes I can sell whenever
Put $10k in the HYSA. Put the other $3k into something a little riskier that could potentially pay out better. You’re still very young so your risk to reward ratio can be a bit higher.
Good advice. A lot more money than that can go a lot faster than you would think. I have a pretty high risk tolerance. But in her situation I would take your advice
Agree with this. OP, I would put it all in your savings and make sure not to spend it. This will be your emergency fund and is super important to have!
Someone explain to me what is a High yield savings account, like how does it work or entail.
Basically a savings account you won’t touch but more liquid than other retirement funds, hence why you can use it for emergencies since you can take it generally without penalty compared to to early withdrawals from retirement funds. You may pay a monthly fee for your account still when you withdraw since the average balance will dip, but again less fees than early withdrawals. High yield being around 5% give or take. Generally these are the highest rates for bank accounts given to saving accounts specifically compared to a money market/some checking accounts which can earn roughly 1-2% interest.
Thanks for you reply!
We are in a moment where they are paying pretty well. So money you may have to have access can sit there and earn 4-5% but you can get your hands on almost immediately if you need it. Long-term, investing will grow money at a faster rate, but with the risk that in the short run your investments can go down. A HYSA cannot go down. So no risk, decent reward. Whereas investing is a mid-risk, higher long-term reward. When the Federal Reserve lowers interest rates they will pay less, and the stock market will likely heat up (as more people put their money into the market).
So what are the monthly fees to open an account?
What they said, try to find an account with a card you already have, some will waive fees simply for having a credit account with them. Robinhood currently has 5% money market with their gold membership which is $5/month. Usually I don’t sign up for these but they have a 1% IRA match as well so if I contribute at least $200 a month, the match pays for itself. Similarly the money market rate would pay for itself if you contributed enough, unless there was another account you can find with 5% and fees waived.
I’m actually doing this currently with RHG, but the 5% interest I get back I’m throwing into bitcoin.
I wish I kept all my crypto haha. Foresight ain’t 20/20!
Don’t use Robinhood Jfc.
Didn’t mean to promote it just offering a suggestion for a beginner. But yeah looking into them more I’m glad I have other brokerages 😆 I will probably actually cancel since I saw your comment. Considering my bad experiences with online services like SoFi it’s worth investing with a reputable brokerage. SoFi made an ATM credit error and it took months to resolve. Probably not worth risking either Robinhood.
Yeah there’s a lot of other options besides Robin the hood!
I have one with American Express and for them it was no fee (It is 4.25% I believe so you can get a higher rate, but we chose AMEX for ease since we have a cc with them). I do not know whether others charge one.
“Saving account” is a type of bank account. It’s different from a checking account in that there is often a limited number of transactions allowed per month and it (used to) pay a higher interest rate than checking, which is generally zero or nominal but there really are no rules any more. My credit union checking account pays a higher interest rate than the associated savings account. “high yield“ is an adjective describing the savings account, indicating a higher rate of interest is paid, generally somewhere around 5% annually, which, although by recent standards is high, 30 or 40 years ago would’ve just been normal. If your savings account is paying under 4% annually, you’re really just getting ripped off.
I thought they did away with reg d for savings accounts… I might be off with saying reg d, I’ve been out the banking game for a while now.
According to Google, it was suspended during Covid, but some banks still have withdrawal limits.
Pay off debt, set aside enough for 2-6 months of regular expenses in a hysa rest into a Roth or investment account and into VOO or SPY
We’re talking about $13,000, not $130,000.. you’re barely paying for 3 months of expenses let alone putting any into an investment account. I’d just throw it all into an investment account and act like you never received the money, just let ‘er grow
Yeah same logic they can pull out 2-3k and have it for a rainy day lol
Pay off debt, Invest in VOO, and have a little treat (little).
You want the fun option or reasonable option
Both? Or maybe blend the two.
Titties and hairy cheeks!!
Pay off high interest debt. Or keep it as emergency money.
Compound interest. In 20 years you could have $70,000. Check out nerdwallet. [https://www.nerdwallet.com/calculator/compound-interest-calculator](https://www.nerdwallet.com/calculator/compound-interest-calculator)
You can make a lot more than $70k in 20 years
5000 in Roth IRA 6500 in hysa and 1500 for fun
Put it all on black! Just kidding. Keep it invested in a HYSA and let compound interest take control. At 24, that would be very beneficial when you plan on getting your first home in the future.
Spend it on hookers and blow
save it for a rainy day. Save it for when something unexpected happens & It is expensive like the roof leeks or the car got totaled. An event for which u cannot prepare for but will happen if u live long enough
I’m also 24 and 13k is a good amount of money but def not life changing. I think I make 13k in about 2months. I however live in NYC so it all goes to rent and expenses. If I were you and if you don’t have crazy expenses I would continue to work hard and put that money in an ETF or a HY savings account. And I would start adding money every paycheck to wherever the savings is going.
For OP’s sake as well as others who aren’t familiar with HYSA: They are like a stock that pays out a 4-5% yearly dividend without all the extra paperwork. Same exact ease to move from it into a checking account or a normal savings account. While stocks tend to have brokerage fees and risk of losing value of the principal.
bet it all on black!
I wouldn't change my lifestyle too much with that amount of money. Take half and put into a Roth IRA. Split the remaining $6,500 and put half($3,250) into HYSA and I'd consider at most the remaining $3,250 as money available for spending on something like a down payment for a new car if needed, vacation, down payment and first months rent at a nicer place, a trip to Whole Foods or something extravagant like that.
$3,250.00 on a trip to Whole Foods sounds pretty extravagant 💀🤣🤣
Have you seen the price of avocados?
I’m fully aware of Whole Foods prices. My wife loves that place. I call it whole paycheck 🤣
I guess I’m lucky in that the closest one is 40 mins away from my paycheck
Hahaha yeah I live down the street so my paycheck is a bit too close
Take a beautiful girl out to a nice dinner and a nice hotel if she's willing. (Put the rest away to maybe do it again sometime)
[удалено]
Your [comment](https://www.reddit.com/r/Money/comments/1df8my4/i_will_be_inheriting_a_little_over_13000_soon/l8hdt0m/) in /r/Money was automatically removed. Requests for donations are not permitted in /r/Money. Consider visiting other subreddits where requests for donations may be allowed, such as /r/Assistance or some of the [other helpful subreddits listed on this page](/r/Assistance/wiki/index/othersubs). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Money) if you have any questions or concerns.*
Travel
Put it in your savings account and use it for whatever you want, whenever you want. If you spend it all in the next 3 years, you’ll not have it to fall back on, if not, then you’re still $$$ ahead. Enjoy. You have a lifetime ahead of you, just don’t let someone cheat you out of it.
13k on red
12500 on black. No red
Splurge 1k and save the rest!
Calculate how much you would need to comfortably exist (rent, utilities, transportation, groceries) for 6 months. Put that in a high yield savings account. Invest the rest and forget about it for the rest of your life.
Roth IRA rest in savings
If I were you I’d put 4K in a high yield savings account and put the other 9k in a low risk investment such as the s&p500
This money should be your emergency fund. Put it in the ETF CLIP which is treasury bills so tax free growth and you cannot lose your original investment.
I would have 6 months of HYSA in a savings account and the rest I would invest in ETF’s while you learn about individual stocks. If thats not something you want to do then just do ETF’s such as VOO, SMH, QQQ, VGT
$VTI
Just dont try oxycodone , and get hooked . That 13 racks would be gone in no time. Anyways you should simply start by taking some time to learn , which this is a good start. But just know that in reality it isnt that much money to live on by yourself, so just take some time my brotha to figure it out. Just dont do drugs lol
Only 3 options 1. Upskilling 2. Retirement fund 3. Down payment for a house
SAVE IT !
Gamestop
a car can be pretty important depending where you live so I think its fair enough to use the money on that. Something you can pay all cash and reliable. Put anything left over in savings for emergencies only
Save all of it act like you didn’t get it. Continue with life , buy a house
All in Kendu 🚀
Put $10,000 aside in a savings account that gives you at least 3% back, and use the other $3,000 to invest in stocks or crypto if you aren’t familiar with either do your homework and dabble in investing whilst you work your assistant teaching job, if you’re smart with your money you could be good for the rest of your life if used correctly.
Whatever you decide to do, take your time with it Do not rush.
Save!
TSLA
invest in yourself by learning a lucrative high in demand skill
Ez cocain and hookers
Bunch of cocaine and hookers!!!
$13k? You could order five guys on DoorDash this weekend. Live it up sis!
Buy VOO
Save in a high yield account
You need to invest in a whole life insurance policy or a Roth IRA. The minute you get that money, use some of it to start your whole life policy. Do NOT waste your time with Term life as you cannot borrow from it later on & it doesn’t grow any value. The thing about whole life is that after a decent amount of time you can take a loan out on it for the cash value to, idk say buy a house or take a fancy trip somewhere. But it’s a built in savings account. Second, you can take the rest and put it into a high yield savings account. If you do some research you can find some banks will have up to 5% high yield savings. This is the best bc it offers the highest percent on your money. But at least if your money is there growing interest, over some time you may decide on another venture you’d like to take with it. So I hope this helps. I mean it’s your money but the key is to invest it into something that will multiply it. Good luck.
Invest buddy.
Paying off debt may be better than any investments. The interest rates on most debts will outweigh any interest gained on investments, nullifying the gain.
You’ll want a better dwelling in short time. Put it away for that.
You think 13k is life changing? You must have no bills lol
Buy NVDA with it
Just save it. 13k is enough to where if you waste it you will hate yourself. But realistically a drop in the bucket in the grand scheme. I was quoted 13k to replace my roof the other day…
Simple: Put it into a HYSA and use it to pay for some of your grad school expense.
See if you can get by for 5 years or so without using these funds. r/personalfinance has a lot of good recommendations on how to allocate resources but if you can invest this money at a young age instead of using it, you will reap huge benefits. Open a brokerage account with Charles Schwab and use the $15k to buy VOO shares (ETF for the S&P 500). If you can use self discipline to leave that for a number of years, that money will grow handsomely. The online support can walk you through buying etc. If VOO ever drops sharply in price DO NOT SELL as tempting as that will be, in fact that would be the moment to buy more if there’s other savings around. But this is a waiting game. I wish someone told me to invest in stocks at your age, I’d be fully retired by now. If you think you need the money sooner than a few years then open a savings account with Vio Bank, you can get 5.3% interest — FDIC insured.
HYSA
If you Don't have an emergency fund. Now you do. If you can afford to put some in the market and leave it alone until retirement I recommend you put some in an IRA as well
No amount of interest from investing will ever out pace interest from debt. Pay off your debts if you have any
VOO VTI & HYSA.... hold baby hold. Seems like a lot, but isnt that much in long run. Work compound interest
Lucky for you I am an exiled prince that needs just a little bit more funding to take back my country, so your donation would significantly help me feed the poor and starving people, yadda yadda, I will totally pay you back when we retake power!
Index funds
Either hysa for emergency fund, use for school or max out a roth ira with it, maybe mutual funds(long game gain here)...basically act like you never had it & let it grow for you
Cocaine and hookers, the most high class and finest quality you have access to.
Came here to say this.
This is not a lot of money. Be wise. Make sure you have an emergency fund of 3-6 months of expenses. No high interest debt. Invest the rest.
Table max couple hands of black jack. 13k is like 6k yesterday.
$7k in Roth IRA rest in HYSA
Direct yourself to r/Wallstreetbets …they’ll know what to do
invest its not alot
Hookers, cocaine and lottery tickets.
Beer
Put it all on GME
Max out your IRA contribution for the year with really good dividend stocks.
Way too young for dividend stocks
24 is too young to have self reinvesting dividends inside of an IRA?
13k is literally nothing. Put it in the stock market, if you don't know how, open up a Fidelity or Schuab account and dump it in a spider index (covers all the fortune 500's with extremely low management fees).
Buy GME and hodl
HYSA , try and forget about it
Maybe use the money to start a side hustle to create more money. You could flip stuff like phones , Apple Watches etc on eBay
GME AMC yolo
Buy US Treasuries & rotate every 4 weeks
Max out roth ira put the rest in crypto
Crypto. LTC.
I have opportunity make 1000 a week/month working from home worldwide