I am privileged to have started grad school debt-free and am now earning money as part of the program.
I have saved enough money to cover my expenses for a month and a half in a fairly high-cost-of-living area. Dave says I should keep adding to this fund until I can support myself for 3-6 months. However, by the time I have that much money I will have practically graduated and my entire financial situation will change. (I am basically assured a job after graduation.)
Aside from this I have $1000, slowly growing each month, that I don't want to spend but also don't know how to allocate. I figure my options are:
- Keep adding to my emergency fund
- Save for retirement (which I haven't started)
- Invest in something cheap and low-risk, like a mutual fund
What do I do with free cash from a very secure, but relatively small source of income?