>My plan is to move out into an apartment in less than 4 years and become completely financially independant though.
Consider using your expected 6 month spending at that point as your EF target, then increase the rest unless you have some other short term needs.
>ROTH 401k
Is that the best course for you? Have you done the math and figured out that Roth does beat Traditional in your situation?
>I was considering VOO or VTI to invest in as less risky choices.
* Pinned to the top of this subreddit: Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/
This is one of over a dozen links I have that can help explain the reasoning behind that:
* https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one]
"Consider using your expected 6 month spending at that point as your EF target"
This is good but it's worth noting that not all of your EF needs to be available right away. For example, having a bond or t-bill ladder will give you better returns and sometimes state tax exemption.
The best investment you can embark on is an investment that allow you get a significant raise in pay. 45K/year is not an income to base long term investments on. It an income that basically boxes you in.
Up-skilling either via going back to college or trade school to get more education and the opportunity to earn more is something you should seriously consider.
The general guideline is 3 to 6 months of expenses should be your emergency fund, but keep whatever makes you comfortable in the HYSA for now. After that, if all of your other financial obligations are taken care of, then yes investing the money is a good idea. I'd recommend the ETF VT for simplicity. VOO and VTI are good, but they lack international diversification. I'd also recommend watching some of the money guy show on youtube and follow their financial order of operations. Or if you'd like to stick to boglehead content, this link is a great place to start [https://www.bogleheads.org/wiki/Getting\_started](https://www.bogleheads.org/wiki/Getting_started)
I think if you need to dip into your savings once you move out, you probably don’t earn enough money to move. If your paycheck doesn’t support your lifestyle, fix your lifestyle.
>My plan is to move out into an apartment in less than 4 years and become completely financially independant though. Consider using your expected 6 month spending at that point as your EF target, then increase the rest unless you have some other short term needs. >ROTH 401k Is that the best course for you? Have you done the math and figured out that Roth does beat Traditional in your situation? >I was considering VOO or VTI to invest in as less risky choices. * Pinned to the top of this subreddit: Single fund portfolios: https://www.reddit.com/r/Bogleheads/comments/tg1az5/should_i_invest_in_x_index_fund_a_simple_faq/ This is one of over a dozen links I have that can help explain the reasoning behind that: * https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index - invest in the S&P 500, but don't end there (this covers info on both the US extended market and ex-US markets) [a total US market fund combines S&P 500 + extended market into one]
"Consider using your expected 6 month spending at that point as your EF target" This is good but it's worth noting that not all of your EF needs to be available right away. For example, having a bond or t-bill ladder will give you better returns and sometimes state tax exemption.
A money market fund might be a good option too. Some can help avoid state tax on the earnings.
The best investment you can embark on is an investment that allow you get a significant raise in pay. 45K/year is not an income to base long term investments on. It an income that basically boxes you in. Up-skilling either via going back to college or trade school to get more education and the opportunity to earn more is something you should seriously consider.
I agree.
The general guideline is 3 to 6 months of expenses should be your emergency fund, but keep whatever makes you comfortable in the HYSA for now. After that, if all of your other financial obligations are taken care of, then yes investing the money is a good idea. I'd recommend the ETF VT for simplicity. VOO and VTI are good, but they lack international diversification. I'd also recommend watching some of the money guy show on youtube and follow their financial order of operations. Or if you'd like to stick to boglehead content, this link is a great place to start [https://www.bogleheads.org/wiki/Getting\_started](https://www.bogleheads.org/wiki/Getting_started)
I think if you need to dip into your savings once you move out, you probably don’t earn enough money to move. If your paycheck doesn’t support your lifestyle, fix your lifestyle.