Savings Account vs. Investment

I am a 27yo who has finally gotten ahead and have a bit of a savings account. That being said, I am also in nurse practitioner grad school and working full time so I do still have student loans that unfortunately are going up instead of down over the next year and a half. 

 

My parents were not money savvy and definitely did not pass on any expertise to me. They just always pounded into my head to "save as much as you can". I, however, have heard recently that putting money into a savings account and letting it sit there isn't a great option either. Does anyone have any resources to get into investment or should I let it sit? I have ~7.5k in my savings currently. My savings categories are home down payment, emergency fund, and vacation. 

 

Or, should I stop saving and put all of what I would be putting in there toward student loans? Right now they are interest free so I have been trying to make my nest egg a little nicer while they are "frozen".

 

ETA: I hadn't been making extra loan payments before because I was part of the PSLF program. Now that I am going back to school, though, I doubt I will qualify for that program once I am out of school. Which kind of screws me on the fact that I've barely paid on them in the past 5 years..... 

 

thanks

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  • I’d continue to pad your savings for now. Don’t worry too much about returns at the moment. You need to have some liquid savings available to you that won’t fluctuate wildly like they might in investments. You can get 0.6% returns right now from an online savings account like Ally. I would just put it somewhere like that for now. Later, when you have more funds available above what you need in liquid funds you can start to think about investing. 

    Check out the Dough Roller podcasts and/or Bogleheads online. Also, I highly recommend you read The Simple Path to Wealth by JL Collins. I gave that book to both of my sons and if I could only recommend one book, that’s the one. In fact, the author wrote it for his daughter.

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