Hi /soc/, So... I had my 25th birthday a few days ago! It was

oh damn is ur bday 10/2?? mine is as well. also turning 25 :)

oh misread....

27 year old here and im gonna sound like an old man.
Pay off your debts and put 1/4 of that into your Checkings and 3/4 into your Savings.

Buy yourself something nice but dont keep buying shit on impulse.
That money will come in handy in the future when shit hits the fan.

>>>/biz/

>>24403789
Hello almost-twin!

>>24403807
Yeah, I figured that I should pay off my loans first thing. But even 1/4 of what's left is quite a lot of money. It's kind of mind-boggling, you know?

I would put it away for a home. Make your loan payments as usual because there isn't a good reason to pay off that loan early. The moment you start slicing away at that lump of money it becomes very easy to keep cutting bits off.

>>24403779
You should invest at least some of it, and if you need any car repairs or have debt, pay it off and do what you need to do

The rest of it you can spend however or invest the rest, or maybe use some of it for a down payment on a cheap house

>>24403779
Happy bday. Down payment is an investment as property tends to return.

>>24403844
Btw personally I'd invest 15k to build up, some in an ira and a good amount in your savings for a rainy day fund. 5k is a good amount to use for debt and whatever, depends on how much you have but you don't need to pay it off all at once anyway

>>24403779
Gib contact , be my gf, invest in a house with me. t. rich guy

>>24403860
me the rich guy

>>24403860
Oh I didn't realize it was a girl rip

Nevermind my advice, do whatever you want

>>24403819
I totally understand that feeling but you have to learn self control.

Guy i went to HS with got 30k inheritence from his Grandpa.
He burned through it all in under a year buying dumb expensive crap and partying.
Now hes still broke and poor.

Dont be that guy

Hi op. 26 m

Do treat your self to something nice but like another mentioned don't keep buying on impulse.

Car need repairs or maintenance?? Through a bit there maybe. But most of all pay off those student loss and get that out of the way. If it's only 3k just knock it out

>>24403779
Having had piles of money and thrown them into stupid shit, my recommendation would be: don't get excited and buy a five figure car immediately.

>>24403807

Gonna agree with this guy. Pay off your loans, buy some nice things for yourself and save the rest. You'll be glad you have that money when you need it.

I will turn 25 in December. I will spend the day at work. I will come home to my mother's boyfriend's house and sit alone in the room I rent from him.

>>24403779

>>24403807
32 here, going to sound like an even older man and echo >>24403859 a bit.

You said you'll have six months of paychecks all in one go, right, even if you pay off the debts? I'm guessing you make, before taxes, about 42000/year.

Save three months' pay. Put it in a savings account and forget about it. That's your emergency fund.

If you haven't already, put $5500 into an IRA for the year. If you don't have an IRA, open one. It's tax-deductible so Uncle Sam will give you 25% (or so) back in April. If you were talking about "six months of paychecks before taxes", then make it a Roth IRA. You won't get the money back so quickly, but believe me, you're probably not going to pay taxes that low again in your life (at 34k your tax rate is only 15% anyways).

If your job offers a 401K, then turn your contributions up. Way up. Like, 50%+ up. 80% if you can stand to do it.

Remember how he said it was "not much, really", but after twenty-five years it looks like a shockingly huge amount of money? Well, in forty years, it's going to do that again, and almost again-again. If you do this right now, trust me, your retired self is going to thank you. Adjusted for inflation, the S&P 500 returned *14X* over the forty years ending Friday, and that's about right for historical data. Your $5500 will easily be over $50,000 in today's money (probably over $75,000), and that's not counting any 401K you can sock away.

You should have a little money left over from that. Feel free to spend a little on yourself (~$500), maybe a nice spa day or something, because you'll be in a lot better position than most of your friends. Think about the rest until the new year, and make choices that you've thought about for a while, not impulse buys.

And then maybe you can go find that femboy. ;)

Sorry I disappeared for a while there, a storm came through and I lost power for a bit.

>>24403872
>Guy i went to HS with got 30k inheritence from his Grandpa.
>He burned through it all in under a year buying dumb expensive crap and partying.
>Now hes still broke and poor.
>Dont be that guy

Pretty much this is exactly the thing I'm trying to avoid! I mean, I want to do a fun thing (or a couple fun things), but I don't want to regret them in a couple years either.

>>24403898
I'm not super interested in cars, so I'm good on that at least! I have a 2008 Yaris that has been pretty good to me, fortunately no big repairs needed. Knock wood. :)

>>24403859
>>24403969

I have a 401k at work and I just went with the setup they gave me when I started it. I guess I can talk to my uncle about setting up an IRA. Is that good enough?

>>24403924
You should at least buy yourself a little cake to celebrate. :(

35/m rich guy weighing in

There aren't many better things you can do with that sudden windfall of $20K at your age, than this: max your 401K contributions through the end of the year and just live off the funds from that check in the meanwhile.

Based on my calculations, you can hit the max 401K deferrment of $18K for 2016 if you turn your contribution up to 100% right now. You will get an immediate return over six months in the form of all the taxes you would have paid on your wages. That's about $5500 if you are single, AND your estimated taxes for the year will all have been overstated year to date, and you'll get about $2700 in additional tax return next years. This approach turns your $20.2K into $28,400, 18K of which is now invested in some mutual funds in your 401K and if left alone will likely be a huge part of your retirement one day. In the meanwhile you'll still have over 10K of additional liquidity in the same time period than you would have otherwise. Put all that money in a savings account for your first home purchase, and don't spend a dime of this money on special indulgences.

You've been given a lifechanging opportunity to seed both your retirement account and your future home downpayment with a large chunk of money each.

Don't blow it, or you'll look back on this time in regret when the older, wiser you is managing the responsibilities that come with age.

>>24404118
>I guess I can talk to my uncle about setting up an IRA. Is that good enough?

Probably. He set this thing up to begin with, so I would bet that he knows at least the basics of investing and the value of a long-term plan.

>>24403779
I'll be your cute femboy boyfriend and wear cute panties if you gib money

>>24407447
This, but me if you're in the northeast. Self supporting so you don't need to pay. Just be my friend that's into femboys?

Come to CT and chill with your local sadboo

>>24403779
all on black.

Seriously though, if you martingaled on roulette (doubled your bet when you lose, went back down to $1 when you won) with a bankroll of 20, 000, the wheel would have to run red 13 times in a row for you to lose everything. the probability of that happening is like 1 in 10 000. So do it 9 999 times, and you've just make 10 000 dollars risk free. Then invest it all in something safe like dogecoin and you're set for life.

Thank me later.

>>24408242
This is the worst advice I've ever read.

Casinos love roulette systems players. They almost always lose their principal.

>Go on a couple really nice vacations?
>Find a cute femboy boyfriend and buy him all the cute panties?

Not a femboy but take me with you on one and I'll wear any panties you want me to. I'll draw you like one of my french girls. Never had a vacation in my life and I'm just stressed to hell right now.

>>24403807
Also 27 here and I completely agree. It's painful to be this wise.

>>24403819
save it, save it and keep it for later when you want to get a house.

>>24408406
do the maths. 1 in 10 000 isn't most of the time, scrub.

>Gets what amounts to a golden ticket for most people.
>thinking of fucking tossing it away on bullshit.

I know you're fresh out of college and all, but 20 grand ain't that much cash. Be smart about it, pay your loans, set most of it aside for a rainy day fund (it WILL save your ass in the future, trust me on this).
The most important thing you can make with money like this is invest in yourself, forget about vacation shit, that will set you back even more.
At the end of the day, it is your money, but dont make the mistake of starting to buy random shit you dont need because you have a little. Remember you were in debt prior to this gift.
Also, happy 25th OP, I remember when I had mine. Crazy weekend in Vegas.

File: whaaa.jpg (9KB, 240x240px) Image search: [Google]

9KB, 240x240px

Go into a dollar store and buy 20,000 items.

>>24408800
>>Gets what amounts to a golden ticket for most people.
>>thinking of fucking tossing it away on bullshit.

Something about the phrase "blow it all on dildos and rum" makes me think she was at least partly joking. I think she's actually got a pretty good handle on where it stands in the grand scheme of things, and she's said she wants to do something longer-term so she doesn't look back on it with regret.

That said, I think the "don't spend a penny!" advice is overblown. It's important to plan for tomorrow, but you shouldn't forget to enjoy today while it's here. If she can set aside a couple months of liquid savings, square up her IRA/401K, and have money left over, I don't see why she shouldn't be able to treat herself. Maybe *a* nice dildo and *a* good bottle of rum would be appropriate, or *a* nice pair of panties for the hypothetical femboy. ;) Like the song says, all your money won't another minute buy. You have to find a healthy balance.

As an aside, vacations can be "investing in yourself!" Travel can tell you a lot about yourself and your place in the world. Do something purposeful, or at least think about it before you take off to Bali or something where 'travel' means "white people lounging around on a beach, being waited-on hand and foot". I did about a month of backpacking around Japan a few years ago and did a lot of thinking about the minimalist sort of lifestyle that their tiny island encourages; when I got back I sold a lot of my stuff and was able to scale down my apartment. By now it's paid for itself just in saved rent.