Sorry for the very broad question but I am starting to look ahead. I will be graduating from university and starting a job in the near future making approximately $3000 - $3500 a month (take home). I will have no debt coming out of university and won't have to drive a car.

With this being said I'm assuming I'll be saving around $2500 a month by living at home. What do I do with all this money? Buy an apartment and rent it out? Invest? I live in Canada, Ontario.

  • by "living at home" you mean with your parents? How long do you intend to do that? My first goal would be to start saving up for a home for myself rather than a rental property. – D Stanley Dec 4 '17 at 15:37
  • @DStanley Yes with my parents. Don't know an exact time but i'd say at least 3 years for sure. – FreeStyle4 Dec 4 '17 at 18:44

I am starting to look ahead.


Buy an apartment and rent it out?

First you need a down payment!!! (Preferably 20%. That'll take time to accumulate.)

What do I do with all this money?

  1. Fully fund your Registered Retirement Savings Plan (up to 15%) in a mix of aggressive and conservative funds. (Being American, I don't know what the plans offer.)
  2. Get your feet under yourself as to what your monthly expenses are like.
  3. Track your spending. (All of it!!!)
  4. Live below your means.
  5. After a few months, make budget, and stick to it.
  6. Budgets are not torture chambers designed to restrict your fun.
  7. Build an Emergency Fund of 3-4 months worth of expenses.
  8. Save the left-over in an on-line bank for a year or so while you settle down, and learn more about adult life and investing. (Heck, you might find a POSSSLQ -- modernized version of POSSLQ -- that you want to marry and procreate with.)
  9. Then decide what medium- and long-term investments you want to put your money in.

(EDIT: these suggestions might sound trite and obvious Common Sense, but Voltaire was right: Common sense is quite rare.)

  • I might add that following these steps, plus "avoid debt like the plague" will quickly guarantee your financial freedom for the rest of your life. – pojo-guy Dec 4 '17 at 1:01
  • 1
    10. Thank your parents profusely for allowing you to live at home for so little when you could clearly afford to live on your own. – chepner Dec 4 '17 at 14:57

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