I have 10k in savings what should I do with it?
I’m a college student, debt free and covered. (It will stay that way no worries).
I rent an apartment, work part time as a server. I throw every extra dollar I have into savings hence how I managed this much in 2 years
I have 10k in my savings account.
What can I do to make this money grow more and quickly?
Smart things to do with the money?
- ALv 71 month ago
Congrats on being debt free and having a nice nest egg. You should keep 25% of it in your savings for 'fast cash' emergency. The rest can be split up into different term CD's. No they don't earn huge money, but you are not in a position to have any of this at risk since you are still in school and only work part time.
Consider putting 2500.00 into 3 separate CD's with varying terms of 1 yr , 18 months, and 3 years.
The stock market is too risky right now between being an election year and the worldwide implications from the corona virus.
Once you are out of school and working, put all that extra money into the employer sponsored 401K, get the company match and let it grow.
- DEBSLv 71 month ago
'grow more and quickly' means risk. You need to decide if you're okay with short term reductions in that balance. Being younger, risk is often more accepted than when you're older without as much time to recover from market downturns. If you're okay with risk, investing in the stock market can get you a good return on the your money. Again, a good return also means there's risk that it will go down. Which direction the market is going is anyone's guess at any given time. Getting an ETF or market fund which diversifies your money instead of having all in one stock is smart.
If you are risk adverse, then look for the highest interest paying account. These days, that return is small (which is logical given the risk is low as well.)
- leeceveLv 51 month ago
Put it in a GIC. The stock market can earn you more money faster, but it's always risky especially for you who is assumably uneducated regarding the stock market. A GIC can earn you quite a bit depending on how long you put the money away for.