Re:Ask HN: How do you manage and budget your monthly income
by dyeje on Saturday January 02, 2021 @01:51PM
(#25615273)
Paycheck is automatically deposited into various savings, what's leftover is spending money.
I think your investment strategy is pretty off. Don't bother with CDs, just get a high yield savings and keep 6 months expenses in it (it's an emergency fund and it should be liquid). The rest should go into mixture of index funds and bonds (the balance of which depends on your age and risk tolerance) in tax advantaged retirement accounts.
Once you've maxed out your tax advantaged accounts, the rest can go wherever. Personally, I do mostly index funds with a little bit of crypto and individual stocks for fun.
I recommend the book The Simple Path to Wealth. I didn't know anything about finances before that book and it provides a simple, set-and-forget strategy with ample reasoning behind each decision.
I think your investment strategy is pretty off. Don't bother with CDs, just get a high yield savings and keep 6 months expenses in it (it's an emergency fund and it should be liquid). The rest should go into mixture of index funds and bonds (the balance of which depends on your age and risk tolerance) in tax advantaged retirement accounts.
Once you've maxed out your tax advantaged accounts, the rest can go wherever. Personally, I do mostly index funds with a little bit of crypto and individual stocks for fun.
I recommend the book The Simple Path to Wealth. I didn't know anything about finances before that book and it provides a simple, set-and-forget strategy with ample reasoning behind each decision.