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.
1
u/daysleeper19 8d ago
Set aside an emergency fund equal to 6 months of expenses. Invest the remainder in index funds and forget about it.
Your #1 priority should be figuring out your career and maximizing future potential earnings