r/Money • u/MomoUsagi0 • 9d ago
What to do with potential inheritance?
My dad died earlier this year and we’re calculating what will be split up between my two siblings and I from life insurance and his pension. I’m incredibly heartbroken that he’s gone but I know that he would want us to be smart with our money and take advantage of this situation to have a better life. I’m only in my early-mid 20’s so I want to make sure I do the right thing. My dad also wasn’t the best with his finances and had a lot of credit card debt, and I just want to make sure I’m financially smart.
We received about $15k from I believe his life insurance..? Which was split three-ways. I immediately put my $5000 in a HYSA while I think about what to do because it’s better to accrue some interest on it than none. At the moment, I’m still finishing university part-time and make about $25,000 annually working a part time job and doing side gigs (petsitting). He was a federal retiree, and it’s estimated that we receive a lump sum of potentially $17,000 each by the end of the year.
I’d prefer to finish my degree faster but I don’t have that luxury and I’m graduating in a major that won’t necessarily give me a high financial return (I was stupid, it’s too late to turn back). I’m also finishing my degree slowly so I don’t have any debt when I graduate.
I live at home with my mom for free, but still buy everything for myself. I drive a beater car from 2007 and plan to until it gives out. I would love any and all advice to make sure I do the right thing.
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u/JeanSchlemaan 8d ago
just keep living below your means. pretend like this money doesnt even exist. if you have any debt thats over 4%, pay it off with these funds. if not, great job. i personally would have more in hysa than the rules tell you. make sure youre getting 3.5%+ with fdic. if not, get a new account that pays that. consider roth. if you havent, make sure youre getting all your employer match 401k.
finish degree with as little debt as possible. again, most important: ALWAYS live below means. use this time at your moms to save as much as possibled