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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AutoModerator t1_j27rbgc wrote on December 30, 2022 at 6:32 AM

#1,173,169

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Greenappleflavor t1_j27rj4z wrote on December 30, 2022 at 6:34 AM

#1,173,217

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

[deleted] t1_j27sbvo wrote on December 30, 2022 at 6:43 AM

#1,173,406

[removed]

maedocc t1_j27wpzj wrote on December 30, 2022 at 7:35 AM

#1,174,196

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.

Foreign-Run470 OP t1_j27zgvn wrote on December 30, 2022 at 8:10 AM

#1,174,693

Replying to maedocc (#1,174,196)

Thank you for the advice

Bad_DNA t1_j28b9cp wrote on December 30, 2022 at 10:49 AM

#1,176,932

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

Foreign-Run470 OP t1_j2b4jkc wrote on December 30, 2022 at 11:16 PM

#1,200,884

Replying to Greenappleflavor (#1,173,217)

Thank you

Foreign-Run470 OP t1_j2b4khb wrote on December 30, 2022 at 11:16 PM

#1,200,898

Replying to Bad_DNA (#1,176,932)

Thanks for the help!

Greenappleflavor t1_j2bfrc1 wrote on December 31, 2022 at 12:35 AM

#1,203,731

Replying to Foreign-Run470 (#1,200,884)

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.