I am in a very similar position. I'm 24, graduated 3 years ago. I had been working in the field in which I graduated (apparel merchandising and design) but HATED it. I had also been working part time at a restaurant during that time, and decided to leave my retail low-level management job with benefits to work in a restaurant with a flexible schedule but considerably higher pay (working full time, I should make around $30k this year, more if I am able to get more night/weekend shifts this summer and fall). I lived at home with the parents for a year which allowed me to pay down my 20k in debt in just over a year.
I now plan to return to school this fall for a new degree in dietetics. My tuition will be between $2500-3200 a semester. I'll be going part time, since I already have credits from my previous degree, so the cost will vary a bit depending on credits, and while I know I'll be able to pay as I go, I would have no buffer whatsoever. My parents stepped in and just offered to pay my tuition if I maintain a high GPA and cover my living expenses. So now, I should have a few thousand extra, and I'm not sure the optimal place for me to put it. I know when I finish the degree, I will have to complete a 6 month to a year long internship, unpaid, sometimes you even have to pay the institution to teach you and offer the internship, so I want to be sure I have living expenses readily available for at least a year. It will take me four years to get through this program, then a year long internship, after which I should be able to land a job in the $40-50k range, with good benefits, possibilities for advancement, and definitely opportunity to work for myself in the field during my retirement offering nutritional counseling and diet plans.
Anyway, my question is what is the best use of my money? Obviously put it somewhere it can work for me, the question is where? I currently have a Roth IRA with investments of about $2500. I just opened it in December, so I'm new to this whole saving money thing. I always used to think money was for spending, never realized until I started reading this blog last fall how stupid that was. I only have about $1500 in my bank right now as my "emergency" fund (that's about two months of expenses if something extreme were to happen). But I have no loans and my credit card balance is only about $500 right now (paid in full every month). I'd like to have a little more in my bank account for easy accessibility, but I'd also consider maxing out my IRA contributions or even opening an additional investment account of some kind to have my extra pay earn me a little money while I go through these next four years so I land on good footing for my internship. I should have a surplus of about $1000 a month with my current frugal expenses through the middle of august before school starts. After that, it is hard to say, my focus will be on excelling in my courses, but I will be working part time, at least enough to cover my living expenses, and hopefully a little more. But even if I get another 4 grand into an investment account, and maybe another $200 or so a month for the next four years, that could earn me some decent money to live off of when I need to take it out in 4 years. Just looking for suggestions on how to optimize the savings and what the best strategy would be given my circumstances.