Of course, the decisions that you make with your money are ultimately up to you, but for an emergency savings fund, it is usually best to first consider cost of living rather than an initial numerical amount. For example, it is commonly recommended that if possible, a person should save an amount equal to approximately 6 months or greater of accumulated cost of living, which could include such things as apartment rent or mortgage payments, monthly utility costs, food and transportation, etc. With $5,000 there may not be a whole lot of interest to be gained from investment, but you still might want to take a look at some low-risk options with guaranteed returns. On your part, this may require maintaining a minimum balance or making regular deposits but it can be worth the trouble in the long run for some people who wish to expand their savings over time.
Save save save! Sure you can spend some every once in a while otherwise for what reason would you be saving? If I were you I would open up a Roth IRA and contribute. Watch your money grow.
if you are funding your 401k through your salary and getting the full company portion, and if you have other money for a rainy day (like at least two months salary), yes, spend the $5000! you need to assure you are careful in your spending and saving. good job asking for help.
You should have 6 months to a year of living expenses saved for emergencies.
$5000 is peanuts ,but than again I bought a house worth $150,000 with $10,000 downpayment and with house appreciating in value I borrowed $25,000 to open pizza store in it and now 10 years later I can sell it for $400,000 . So it is peanuts but it could be small fortune also if you find a good way to invest it .
6 months of expenses is ideal for an emergency fund, then you should be saving for retirement, next car or house down pmt, annual medical co-pay, vacations, other stuff
Honestly, spend a little. It DOES feel good to save money and to look at your amount and feel successful. But, to spend a little, makes you feel more happy. Let me tell you why...
When you buy something that others may not be able to buy, it's like, "look what my hard, earned, money bought me." It tells you who you are.
Save. You can get more later if you save. For example just think: no monthly car payments
yes! give it to me.
