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$39k is s nice chunk of dough. Add $1k and make it a round $40,000.
Talk to an investment counselor about putting that money to work.
In 10 years time, assuming a modest 7% return, with no additional deposits the value of that investment is $78,000+. Run the numbers to see how that grows over the next 30 years. And for fun, assume you will add 2500 annually just for the next 10 years and nothing after. Time-value-money is incredibly powerful.
If you use it to buy a car, you will have a 10 year old car.
Money is cheep right now. You should easily find 4-5 year loan for 2% or less.
Never,ever cut into your principal (original pile of money). Even buying a house only put down 20% to avoid PMI.
Set up a spreadsheet laying out your monthly expenses like rent, student loan, utilities, going out money, retirement funding and expected car note. Put in monthly take home pay. If you have been honest with your numbers you will find out your fiscal health.
You have a very speciAl situation that has the potential to make your future life quite nice.
Don't blow it.
Last edited by g e; 05-01-2017 at 10:04 PM.
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