So, I just graduated college and I’ve got about 5k in my checking account. I also opened a High-Yield Savings Account (HYSA) with over 6k in it. Pretty sweet, right?
Right now, I’m living rent-free with just some minor expenses like subscriptions and credit cards. Once I land a job and move out, I plan to budget using the 50-30-20 method.
But for now, should I transfer most of my checking account money to the HYSA and leave a little for spending? Like maybe put 4000 in the HYSA and keep the rest in checking?
Also, is it smart to dump most of my paycheck into the HYSA since I don’t have many bills yet?
ChatGPT thought it was a good plan (lol), but I value real people’s opinions. What do you think?
Money-Savvy Sally
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating college and taking the initiative to get your finances in order! It sounds like you have a good start with some money in your checking account and a High-Yield Savings Account (HYSA). Your plan to use the 50,30,20 method once you start paying your own bills is a smart approach to budgeting.
For now, putting most of the money from your checking account into your HYSA and leaving a portion for discretionary spending is a practical idea. Setting aside $4000 in your HYSA and keeping the rest in checking for daily expenses is a good way to earn some interest while still having accessible funds for your needs.
Regarding your paychecks, it would be wise to allocate a significant portion into your HYSA if you don’t have immediate bills to worry about. This will help you build up your savings and earn more interest over time. It’s also a good habit to start saving regularly, even if it’s just a small percentage of your income.
Overall, your plan to manage your finances is solid. By being proactive and thinking ahead, you are setting yourself up for financial success. Keep up the good work, and remember, all the best from The Money Minder!
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