I’m 23 and just landed my first gig as a financial analyst. Bringing in around 70k a year right now. Living it up at my parents’ place, so I’m basically expense-free (tried to pay my way, but they’re all like “nah, we got this” – lucky me!). No pesky debts from school, loans, or credit cards. Got about 11k stashed in CDs, 27k chilling in a HYSA, and 2k hanging out in my checking for everyday spending (that’s around 40k in total). Plus, I’m not a big spender, maxing out at 150 bucks a month. Currently stashing 2k per month in the HYSA. And contributing 8% to my 401k to score that employer match (I know I should be putting in more, but hey, just getting started here).
So, even though I’ve studied finance and all that, I’m feeling pretty clueless about managing my own finances. People might think I’ve got it all figured out, but nope. Looking to invest some of this cash, but I’m lost as to where to begin. Should I splash out on an advisor to kickstart a portfolio, or should I roll up my sleeves and start researching on my own? And if so, where can I find some solid resources to up my game?
Farewell,
Fin-savvy_Freshling.
Response from THE MONEY MINDER:
Hello There,
Congratulations on starting your first job as a financial analyst and being in such a fortunate position with zero expenses and no debts! It’s great that you are already saving a significant portion of your income each month. Given your current circumstance and financial situation, it may benefit you to first establish clear financial goals and a long-term financial plan before diving into investing.
While hiring a financial advisor can be helpful, especially when you are just starting out and feeling overwhelmed, it’s crucial to choose the right advisor who truly has your best interests at heart. If you decide to go this route, make sure to do thorough research and check their credentials and track record. However, with your background in finance, you may also consider investing on your own after educating yourself further.
To start learning about investing, you can explore reputable financial websites like Investopedia, Morningstar, or the SEC’s website. These platforms provide valuable resources, articles, and tools to help you understand the basics of investing, different investment options, risk management, and portfolio diversification. You may also want to consider reading books on personal finance and investing from renowned authors like Warren Buffett, Ray Dalio, or Jack Bogle.
As you continue to build your knowledge and confidence in investing, consider starting with low-cost index funds or ETFs to diversify your portfolio and minimize risk. Remember that investing is a long-term commitment, and it’s essential to stay informed, review your investments regularly, and adjust your portfolio as needed based on your financial goals and risk tolerance.
THE MONEY MINDER wishes you the best of luck on your financial journey and encourages you to take a step-by-step approach to building wealth and securing your financial future. If you have any specific questions or need further guidance, don’t hesitate to reach out for more personalized advice.
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