Invest it. Crypto, index funds, property, art, etc.

So I’m surprised by all the comments in an entrepreneur subreddit about investment funds and high yield savings.

OP, if you want to make money from money you do need to do investments but not that 20 stuff. That’s retirement savings and planning, not entrepreneurship. Unless you have a large pile of cash sitting around you won’t be able to do angel investing. So my answer to your question “how do I use money to make money” is simple. Work. Invest in good equipment for a side hustle. Invest into education to increase your job prospects and income. Save for a while and try to flip cheap houses for a few grand every few months. There are lots of smaller, easier entrepreneurial options for you to use your +1k a month to make more, but they all require significant time and energy.

Above any investments or side projects or whatever, get 6 months of expenses set aside as an emergency fund if you lose this new job. Then get a few grand set aside as your flexing fund. If you need new tires suddenly, or a pipe breaks and you need to rip out walls and floors, you break your thumb, that kind of thing, that’s what this flexing fund is for. Give yourself the cushion and stability to avoid major stressors. Don’t live paycheck to paycheck.

Best of luck OP! Congratulations on the new job!

As some of the comments mention, put it in an account for emergency.

I recommend splitting it into chunks. Have one account that can pay for 3 months of your expenses in case of emergency.

I personally would have my 3 months of expenses set aside. Then I’d have the rest put into a separate account. 40% into a managed fund for dividend yields that can compound over time. 40% I’d manage myself in value investments but this takes time and failure to learn.

The remaining 20% I’d save each month to go towards courses, books, and self development to maximize my return in myself.