Help with putting left over money into something that creates more money. Whether it be stocks a Roth IRA, or a savings account.

Submitted by Foreign-Run470 t3_zytb2d in personalfinance

I’m 22 years old. I don’t have great financial skills or savings skills. I currently work full time bringing in around 2500/m I calculated my monthly expenses like rent, car, gym, and after everything I found there’s an extra $500. I know it’s not a lot but I also it can be put to use more effectively and efficiently then I have be using it. Any suggestions would be appreciated.

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Greenappleflavor t1_j27rj4z wrote

I’d put it into Roth IRA and do half voo half vea.

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Foreign-Run470 OP t1_j2b4jkc wrote

Thank you

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Greenappleflavor t1_j2bfrc1 wrote

Vtsax has similar top ten holdings as VOO and its total market but 99% of the portfolio in US market. Given your age I’d do 50/50 because of your time horizon but you can certainly change it up a bit to 60/40 or 70/30 etc. just be careful with funds overlapping too much which means you’re less diversified then you think.

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maedocc t1_j27wpzj wrote

Open a Roth IRA and $500 a month is enough to max it out.

Where? Recommended brokerages: Vanguard, Fidelity or Charles Schwab.

What to invest in? A total stock market index fund or S&P 500 index fund; if you went with Vanguard, that would be VTSAX or VOO.

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Bad_DNA t1_j28b9cp wrote

Start reading.

The Simple Path to Wealth by JL Collins -- easy to read and put into practice

Your Money or Your Life by Robins – as much about how one views money as uses it

The Millionaire Next Door by Stanley and Danko – normal people’s traits and habits of FI success

Building Wealth and Being Happy by Graeme Falco – connecting finance with mental health

Personal Finance 101 by Michele Cagan – easy to read textbook info in bite-sized pieces

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