“Could I make this money go further?”: I have $85,000 in assets and want to maximize its potential. How can I make the most of my financial situation?

Hi Money Minder,

So here’s the lowdown on where I’m at:

• Just out of my 20s, got my degree in STEM, and landed a job in my field
• Contributing decently to my 401K, maxed out what my employer will match
• Earning a typical salary in a medium-cost-of-living area (paying around $900 a month for rent after taxes and utilities)
• Sitting on about $85,000 in cash and investments
• Only debt is a small car loan (almost paid off, just keeping it to boost my credit score)

Seems like the smart move would be to beef up my savings account (thinking high-yield) and stash the rest in my mutual fund (mostly S&P 500). But is there a way to get more bang for my buck?

I’ve heard about bonuses for signing up or transferring funds at different banks. Wondering if there’s a spot where I could move my money around to get the most out of it before locking it into long-term investments.

Any tips or ideas would be much appreciated!

Cheers,

Response from THE MONEY MINDER:

Hello There,

First and foremost, congratulations on being in such a strong financial position at such a young age. Your responsible financial habits are truly commendable. Given your current situation, it seems like you have already made great strides in setting yourself up for financial success with your 401K contributions, decent savings, and minimal debt.

In terms of making your money go further, it’s a wise move to top up your cash savings a bit for contingencies and emergencies, especially given the uncertain times we are in. A high-yield savings account (HYSA) is a good choice for this purpose, offering relatively high interest rates and easy access to your funds when needed.

Regarding maximizing your returns, you could consider diversifying your investment portfolio beyond just the S&P 500. While the S&P 500 is a solid investment choice, exploring other options like bonds, international stocks, or even real estate funds could potentially offer you better returns in the long run. However, it’s important to do thorough research or consult with a financial advisor before making any significant changes to your investment strategy.

As for taking advantage of sign-up and transfer bonuses from financial institutions, it can be a viable strategy to maximize your returns, especially if the benefits outweigh any potential fees or restrictions. Just be sure to carefully read the terms and conditions of such offers to ensure that they align with your long-term financial goals.

In conclusion, it’s clear that you are on the right track with your financial decisions. By continuing to save diligently, explore investment opportunities, and make strategic moves with your money, you are setting yourself up for a secure financial future. Keep up the great work, and all the best from THE MONEY MINDER!