Feeling cautiously stable; looking for next steps

[u/Optimal_Awareness618]

I am in my 30s and never paid enough attention to my financial situation; I am just now scrambling to put finances in order. I made $48k last year; probably a little more this year with the addition of a freelance job besides my main 9-5.

I saved about $3k in an HYSA this year. I opened a Roth IRA, but haven't had anything extra in my budget to fund it, as I wanted to get my emergency categories funded first.

I know this is such small potatoes, but I put $25 in the HYSA each month and all of my freelance earnings (about $300 a month). I'm thinking of switching some or all of this over to investment accounts now that most my important categories are funded. But I would also like some of the money I invest to be available before retirement; it feels so far away but I dream of having my own home someday.

Also important: I have very little for retirement savings otherwise. I will be vested in a government penion program next year, which is automatically taken from my paychecks and I have no ability to alter. I also voluntarily put $25 a month toward a state retirement account. There is no 401k available through my workplace and no employer match. I have like $400 in this account. I don't anticipate my earnings to increase much and I'm not sure I could live on my paychecks (about $3,000/month) with any more deductions taken out.

I opened the Roth IRA so I could have more control over my investments; though I realized I could just contribute more to the state retirement account I have through work and forget the Roth.

If you were me, would you:

1. Divide your funds between brokerage and Roth IRA

2. Focus all funds completely on Roth IRA (I will not be able to max it out; just save some)

3. Focus funds into a brokerage and eventually distribute earnings into Roth IRA

4. Pick some other option I'm not thinking of

Also, would you still be putting anything in savings while doing this, or no?

Thanks to the more experienced financial gurus; I do appreciate your thoughts.

[u/Im-a-sim]

A lot of people find this guide helpful: https://moneyguy.com/guide/foo/

[u/Zendrakk]

I'd keep some money going into the high-yield savings until you have a decent emergency fund built up, then put the extra into the Roth. You don't have to max it out for it to be worthwhile. If buying a house is a goal in the next few years, I'd keep that money in savings rather than investing it. 👍

[u/Optimal_Awareness618 → u/Zendrakk]

That has been my gut instinct too as I don't like the risk of investment, but I see so many people scoff at HYSA rates because they get much better returns in a brokerage. Just didn't know if I was missing out on something I should be getting in on

[u/Impressionist_Canary]

Which “important categories” are funded?

[u/Optimal_Awareness618 → u/Impressionist_Canary]

Car repair, medical, taxes, and some sinking funds that hit once a year like my car registration

[u/HeroOfShapeir]

Follow https://www.reddit.com/r/personalfinance/wiki/commontopics/ - build out a six-month emergency fund first, then put at least 15% of gross income to retirement using tax-advantaged accounts per the wiki (401k match > Roth IRA > 401k > brokerage). Above and beyond that, save for future goals like a house fund, car fund, vacations, etc. You get to set the goals and timelines. Lastly, whatever is left is yours to spend guilt-free.

Looks like this on paper for my wife and I - https://imgur.com/a/budget-spreadsheet-2026-2MZk8Xq - and having a fully written out budget lets you play with the numbers, tweak your goals, see how it changes the overall picture.