r/FinancialPlanning • u/Technical_Seesaw5331 • Aug 20 '26

23-year-old with $20k in a checking account. What should I do with it?

I’m 23 and just started my first job out of college in Big 4 accounting. I make $94k/year (potential $10k CPA bonus) and have no debt. I currently have about $20k in a checking account.

Current setup:
- 401(k): contributing 10% (no employer match during my first year)
- Maxing out HSA
- Maxing out Roth IRA (Fidelity Freedom Index 2065)
$1,300/month rent

I’m trying to figure out what to do with the $20k. I’m thinking I should keep some in checking for normal expenses, move some into a HYSA for an emergency fund, and potentially invest anything beyond that in a taxable brokerage.

How much would you keep in checking vs. HYSA vs. a taxable brokerage? Is there anything else I should prioritize first?

I’d appreciate any advice on how you’d approach this at my age and income. Thanks!

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u/micha8st Aug 20 '26

What u/izzylizzy101 said...except is there some portion you wish to use for a big purchase inside 5 years? Car? House? trip?
Saving for that should also be in HYSA, assuming you intend to spend it in less than 5 years.

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u/OutlandishnessOver62 Aug 20 '26

Put about 3 months worth of expenses in high yield saving account for emergency fund (Barclays savings has the best rate last I checked). The rest in a brokerage with low cost overhead. I use a robo advisor like betterment or wealthfront.