Personal Finance

We're in our late-20s and after all of our expenses, we have an extra $7k per month - where should we invest it?

Joey Frenette

Published: March 2, 2025 11:24 am

Some couples may choose to combine finances after marriage. And while it’s not the right move for everyone, it can be a solid way to connect and unite on shared common financial goals. Of course, family dynamics are going to be different for everyone. Some would rather handle their own personal finances than have to go after every line on the shared credit card bill, questioning outstanding purchases or, worse, placing blame.

While doing budgets together may make sense for certain items (that’s what shared accounts are for), I do think that for the most part combining finances can place more emphasis on financial responsibility. Indeed, you’ll want to make the most of every shared dollar, if not to delight your significant other, to prove to them that you possess financial savvy.

In this piece, we’ll check in on the case of a Reddit couple who recently posted on the r/HENRYfinance subreddit. For those unfamiliar with the term “HENRY,” it’s an acronym for “high (income) earner, not rich yet” — basically, a Reddit for financial high-achievers aiming to turn their high earnings into real wealth, an endeavor that’d allow them to graduate to a subreddit for the wealthier folks (think r/Rich)

An extra $7,000 per month can go a long way!

In any case, the nearly-30-year-old couple is newly married, with a combined income of around $225,000 and enough extra cash in the budget to allocate towards savings and investments. They’re wondering if they should invest the sum. And the answer, as you undoubtedly have guessed, is “yes, definitely.” Sure, it could be splurged as part of an extravagant second honeymoon. However, putting it to work in various investments, I believe, could put both of them on the fast track to an early retirement.

Even if early retirement isn’t for them, they’re en route to becoming financial overachievers that can not only hit milestones such as owning a home, but perhaps have more than enough for a few real estate properties or a fat six-figure stock-and-bond investment portfolio on the side.

Either way, investing is the key to building long-term wealth, especially for a young couple looking to get ahead in life. But first things first, the couple needs to build up an emergency fund in case one or both of them happen to lose their high-paying job at some point down the road.

Start with an emergency fund.

It’s common for many to save up three months’ worth of expenses. However, given how long it can be to get back on your feet after an untimely layoff, I’d argue that shooting for six months’ or maybe even eight months’ worth of expenses per individual can be prudent.

While it’s never fun to think about the worst thing that could happen financially, it’s only shrewd to prepare for such events that can happen. With various big-tech firms laying off thousands, I’d argue that a padded emergency nest egg is an absolute must before putting a single dollar into the stock or bond market.

Embrace passive investments

After the emergency fund’s been built up, I’d suggest going with a quick-and-easy ETF. The Vanguard S&P 500 ETF (NYSEARCA:VOO) is a great way to get started in the investment world. The S&P 500, the index that the VOO follows, is basically what Wall Street refers to when they talk about “the market.”

Though there are international markets and bonds to think about, I do think that for someone so young that starting with stocks is wise. Of course, you’ll take on more risk and be in for a bumpier ride. But it’s nothing that someone in their late-20s or early-30s can’t handle!

After a good amount of cash is put in something like the VOO, one may wish to consider a broader range of ETFs or even common stocks. Of course, a financial advisor should be contacted along the way so that you can ensure you’re not taking on more risk than you can handle. After all, new investors do tend to overestimate their ability to tolerate risk.