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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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707995 No.707995 [Reply] [Original]

So /biz/, I'm a 21yo student who works to support himself. I have nice things as a result of my job, and I don't have any debt.

Thanks to government tax magic, I'm getting $5000 back in tax returns this month and I honestly have no idea what to do with them.

What would you recommend?

>> No.707998

How much money do you already have saved?

If you have nothing saved, then you need to build an emergency fund of 3-6 months expenses. The Bureau of Labor Statistics says the average length of unemployment is 36 weeks. Ignore the why and just assume it is universal and you'll be way over what is needed to be fully prepared.

If you have that in place, then fully fund your Roth IRA, which would take all of the return.

If you've already done that, then look into index funds.

>> No.708001

>>707998
I live in Scandinavia, and I already have my pension plan in place by default. That's what part of my 40% taxes go to. Same goes for university bills and whatnot. Basically, I just have to provide for myself.

But the idea of a 6 month expenses fund is good. That's essentially my entire tax return.

>> No.708046
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708046

>>708001
if you live in Scandinavia dont bother with the american 3-6months living expenses. you should max save 2-3 months of living expenses not more.

>> No.709091
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709091

Since you guys are scandinavians i thought i might as well ask:is it hard for someone 18y/o to find a simple job,or do i need some education before i even start looking?I live in brazil and i am going to try to move to norway later this year,sp any additional tips are welcome.