re: Coming into a small inheritance.. what to do with it? UpDated

6 month? No, I keep enough in it to pay all the bills for at least 2 months though.

I don't know much about Roth, how is it different than a 401k?

Ah ok, so I can have both, maybe place 2k in a Roth and then add to it each year?

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Ah ok, so I can have both, maybe place 2k in a Roth and then add to it each year?

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It's easy to start a Roth through Vanguard. You will have many options if you start with $3,000 (most funds have a 3k minimum).

The yearly limit is $5,500. Like I originally said in this thread, get a Roth if you don't have one...max out your Roth if you can. You can actually max it out for 2014 until April.

I'd add $3,500 to your emergency fund and start a fully funded Roth ($5,500).

Check the stickied thread for more info regarding Roths and which funds to select.

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You realize those suggestions are probably 10k vacations

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You don't know much about traveling internationally. Maybe if he wanted to stay at the Ritz and drink €100 wine every night. I spent 57 days in Europe for 5k. Now it was far from luxurious, but I was very comfortable and could have done it cheaper. He could spend 2.5-3k and have a great 10 days damn near anywhere in Europe, especially this time of year. Caymans are a little pricey, but anywhere else in the USVI are could be done for a reasonable amount.

Point is, enjoy it some of it. Your parents would have wanted you to. Watch is a cool idea, but I'm more of an experiences guy. Either way, hope the inheritance takes a little pressure off.

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10 euro hostels every night? Impressive to stay that long. Did you travel much or stay in a couple locations?

Definitely feasible though...

$1000 for hostel
$2000 food
$1000 flight
$1000 - travel/whatever entertainment

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I've never stayed in a hostel in my life (too old to get into the youth ones anyway, LOL)....I try to find places w/included breakfast, as this is a good way to control costs. Or if you like to stay one place, an apartment can be cheaper than any other form of lodging. A kitchen means you're not eating out every meal & can enjoy local produce & specialties.

Eat your main meal at lunch, which is always cheaper. Shop at groceries/markets/specialty stores for the experience & better prices; find beautiful places to picnic or eat in your room while recovering from a day of sightseeing. Eat light for a few days & save up the cash for a big splurge meal.

Let the airfare be your guide: see what's on sale & go there.

If you really, really want to do this on the cheap, you can volunteer for WWOOF (work exchange opportunities on organic farms). You get lodging in exchange for work at a small farm belonging to the network. Helps to have language skills to do this, though there are some placements w/English speakers. You could be milking goats in rural France & learning to make cheese....all it will cost is the airfare.
ETA WWOOF link: LINK

Traveled all over the place. When it was all said and done I went to 11 countries and 15 cities. I stayed in some hostels. The cheapest was $11 and the most expensive was $65ish. I also stayed in AirBnB's and a few hotels. The most expensive hotel was Paris at about $170 a night. I was with a girlfriend for those 3 days though and it was worth it to "splurge" there. My saving grace was staying with my parents in Madrid for 5 days. That saved about $400 in food, booze, hotel, etc.

As I said, I could have done it cheaper and I could have done it more expensive. It seemed to be the perfect amount for what I was looking for. Had enough to eat good, party, see everything I wanted, and a comfortable/safe bed to sleep in. That's without using miles or anything so a luxurious Euro trip can be done for a really reasonable amount.

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Sure, it can be done for less, but for two people, a decent international 2 week vacation is going to run about 7-10K. Hell, I spent about $5k for a week in NYC earlier this year. When I go on vacation I don't prefer to bum around and skimp on any expireinces.

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I've done an average of two int'l trips a year for the past decade, and I've never spent CLOSE to $7K (exclusive of airfare). Nor have I "bummed" around.
I never stay in chain hotels, and I never share a bath. A little research and advanced planning will save you tremendous dough. The most meaningful experiences often cost very little. Example: the Scavi (archaeological excavations beneath St. Peter's in Rome) cost a whole 12 euros...you descend beneath the square to visit the first century Roman cemetery where St Peter himself was buried. It is an exclusive tour--just 60 ppl per day--but it is not pricey. You simply need to make reservations well in advance and to do enough advance research & planning to know that it's even there.

Ditto for food--it's easy to spend big bucks eating mediocre/ordinary food. I'd rather pay 120 eu/night for an apartment and eat exactly what I want for breakfast in my PJs than spend 10-15 eu/person for a restaurant breakfast every day for a week.

My point is that travel can be life changing without being extraordinarily expensive. I spend less on a European jaunt than most people do in a week at DisneyWorld or a week at the beach in August without backpacking/hosteling or feeling deprived. It's all about researching your options (and traveling off season).

It checks out. I spent $2000 on a 6-month trip to Tahiti, now that doesn't include airfare because I stowed away on a Panamanian oil freighter. Also no hotel, because I built a dwelling from twigs and mud.

I have the same outlook. Most people say I will do it later and when later comes they say I wish I would have done that sooner.

Shoot me an email man.
I'd be interested hearing where you have been and what your opinion is of those places. I grew up traveling through Europe and have continued to as I have gotten older. My goal is to visit one new place outside the U.S. every year. I'm going to Puerto Rico next week for 5 days. I'm far from bumming it and that total trip shouldn't be more than $1200.

Lsutigerz2001@yahoo.com

So update:
received 24,500 inheritance....
paid off grad schools for next semester 6k
paid for hotel + flight to Ireland for 8 days 4.5k
paid off (and cut up) 3 credit cards 5k
placed 3k in savings
invested 2k through my parents financial advisor
and I have 4k left after everything is said and done