I work a travel job where meals are covered, and on my first monthlong work order, napkin maths says I will have just under 10k at the end of it.
Coming from a life where I lived in overdraft and HEROES act was peak living, I have no real idea what to do with this much skrilla.
I use a budgeting app that autopulls from my acccounts, and those show that I spend about $1200 per month without rent expenses.
I aim to put about a third of this money inyo index funds, and do mutual aid where I can, but am wondering what are some things more experienced chapos can offer to take into consideration when budgeting.
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Max out employer-matching 401k if you have it. Shove a lot of money in your IRA for tax purposes if it makes sense. Invest as much as you can as early as you can. Putting down 10% more in your 20’s is going to be much more useful than putting 50% more in your 60’s
High yield savings accounts are good but a lot of them require $100,000 to reach the top amount.
Keep 3-6 months expenses in a High-Yield Savings Account and never touch it, ever. Eliminates nearly all financial stress and lets you actually breathe.
This. After that, get towards being debt-free.
The personal power you gain by not having a chunk of your mind locked into obligation cannot be underestimated.
Prioritize freedom and well-being, even when the cost is skimping. Then, once you’re settled, use some of that extra skrill to buy from sources that are actually ethical, or that are making positive changes in the world.
Just keep on like you were with a little bit more flexibility and woowoo finance bro says you can retire in 3 years.
It depends on how long you need this money to last. When is your next gig and will it pay out at the same rate? Are you in the US? Is this 1099 or W2 income?
It’d be good to sketch out what your short, medium and long term financial goals are. If you have an accurate picture of your recurring expenses then the rest of it can be used to allocate to your goals depending on priorities.
Really strict budgets are hard to obey and can cause more stress so having a general awareness of your financial condition, i.e. approximate balances of accounts and transaction activity, is often good enough but ymmv
