So recently I came into a very slight inheritance (nothing that lets me not work or anything) but a nice change from my previous level of "I would need a payment plan to buy anything more than $1000" as my access to liquid cash is quite small. In general I've saved 20% of my take home pay, maxing out a Roth IRA each month and saving the remaining in my checking account, and keeping a general budget/tracking everything. In the past, when I first moved out of my parent's house and was living alone, I had figured out I basically couldn't buy anything that wasn't an absolute essential if I didn't want to be reaching into my alloted savings and that led to an eventual "I have $30 in cash in my account until next pay period" kind of shit. I have always been sure to fully pay credit cards/treat them more as debit and had a great credit score, and even now am in the 800s so I figured having almost non existent liquid cash available was more the norm in today's society.
Anyways, I've honestly only kept this inheritance in my checkings account in a virtual money under the mattress kinda thing, as I just have a natural aversion/ick towards the stock market and every other aspect of finance in capitalism, and have ignored my bank wanting to schedule financial advisor meetings and such. But I do recognize the kinda tightrope walking necessity of living in a capitalist society, and without things like investments you are 100% doomed to work til you die (which may be the case regardless of financial decisions but work with me here).
So I ask, is there any kind of hexbear/marxist approved financial strategies out there? Like I should take x% and put it in y kind of thing? Or is the money under the mattress equivalent the way to go? Again, I'm avoiding just googling "how to divide your money" kinda stuff because it's coming from total capitalism is eternal kind of places.
Thanks!
Down payment? I don't have the scoop on interest rate trends, so maybe you'd want to wait. There's a bi(tri?)section of what are the interest rate trends, what are the housing price trends in your area, how much of a down payment can you afford, how much of a mortgage payment you can afford.
The higher your down-payment, the less the interest rates matter. Not like 15% or 20%, but like 40%+ of the sale price. They still matter ofc, but there's always the chance of refinancing, which is easier when you have a lower debt/equity ratio.
If there's someone in your life you trust, you could also consider buying a house together. Some states have different laws on that.
Otherwise a HYSA or CD like the others have said. You're already saving 20% of your take home, that's a pretty good chunk.
To go a different direction, maybe take the opportunity to spend some of the money on yourself.
Is there a skill you've wanted to learn? Can you go get lessons? Is there an activity you wanted to try but didn't have the budget? Like martial arts, dance classes, rock climbing.
Maybe music lessons or whatever other art?
You can also take a look over on your budget. Is there anything there that would be cheaper if you put up more money upfront?
Are there any monthly payments you won't give up that you can save by paying annually instead? I know I get a better rate on my car insurance if I pay twice a year vs monthly. Maybe go get your car serviced if you haven't in awhile.
Are you renting the router/modem?
If you're still reading by now, I thought it over again. You should figure out how to buy a house or a condo. Even if that means not putting anything to your IRA. Look into fhas.
Nothing will make you work til you die than paying rent your entire life. Feel free to DM if you have any specific Qs or want help with math/numbers.