I apologize if my formatting is bad, I am on mobile.
The way it is set up is that I will receive $30,000 every December for the next ~8 years. I am 28, live in the US and this is my current financial situation:
- $70k salary (as of this month)
- Car paid off
- No student loans
- No debt
- I live with my partner and we split all the bills, but overall I spend about $2k a month on necessities (mortgage, utilities, insurance, groceries, etc.)
- I only have about $4k in savings at the moment. I know I need to build this up more. Now that my salary has gone up a little, this should be easier to build up more.
- I’m currently putting about $280 a month in my 401k and it has about $16k in it total.
Here are my main concerns/questions:
- How much money should I be putting into my savings per paycheck?
- Should I be adding more into my 401k?
- I need to get a car that has 4WD or AWD, as it gets really snowy where I live, and my car just isn’t cutting it in the winter. My plan is to keep my current car to commute to work when it isn’t snowy (it has good gas mileage) and trade in my partner’s car to get an SUV. My thoughts are to buy a gently used car with the money I get this year but I don’t know if that’s the best route to go or not.
- As for the $30k (other than possibly buying a car) – I want to invest it but I don’t even know where to start or what my options are. I might keep a little bit of it in my savings every year to build it up more but I don’t know what kind of account to put it in or anything.
Any advice is greatly appreciated. Thank you.
Edit: attempted to fix formatting.