kingfischer22
|
Man, if I didn't have any bills I'd say $700 a month is a fortune!
$500 a month for 6 years can add up to a lot more than $30,000 when you consider the return on your investment. Go to your bank and ask to speak to a financial planner--they'll set you up with a good investment portfolio. Just remember that in general, the higher the expected return on your investments the higher the risk of losing them.
Also, mention to the folks at the bank why you're saving. Depending on which state you live in, there are all kinds of matching grants available for prospective first-time homeowners, which will actually contribute money to your account, as long as the funds are to be used to buy a house.
Yes, $30,000 is more than you need to make a down payment, unless you want to buy a really expensive house. The folks at the bank will be able to explain all about closing costs, property taxes, etc.
Your foresight is commendable. There aren't many 17-year-olds who think the way you do. Good luck. |
|
mommafrog
 |
First, is the $1200 before or after taxes? If it's before, you need to count on about $900 a month.
Second, a CD would be the best bet at the moment. You have a higher interest rate than a regular savings account, but you will get penalized for early withdrawl. |
|
ktlove
|
high yeilding savings accounts and cd's. |
|
andrespb22
|
YOU HAVE THE RIGHT IDEA, JUST KEEP SAVING, MAYBE OPEN A SAVE BOND AT YOUR BANK OR CREDIT UNION OF CHOICE AND YOU'LL BE GETTING SOME BOND INTEREST BUILD UP IN FIVE YEARS, NOT MUCH BUT AT LEAST IS MONEY YOU WERENT EXPECTING ANYWAYS RIGHT? GOOD IDEA AND GOOD LUCK TO YOU, YOU ARE YOUNG AND STAY IN THE RIGHT PATH |
|
Adam J
|
Normally I recommend that relatively young people invest their money in the stock market, which tends to outperform other types of investment over the long haul.
However the stock market is fairly volatile, and you can't be sure that it'll be up in a couple of years. You might consider putting most of your cash in high yield cds, or bonds.
I would recommend sticking a little cash in the stock market because it really does outperform other types of investments over the long term. |
|
misfitgoth666
 |
i think you have a pretty good plan. its always good to save your money |
|
Sugar
 |
I hope you can stick to your plan. Often times things have a way of coming up. It's a very good idea.You might try a financial planner. Right now C D's are doing okay. |
|
shamieya
|
You have no expenses and you make $1200 a month? so you're saying you're gonna blow $700 a month on what? food? Doesn't sound like you are saving enough at all. Since you are young and probably not interested in serious investing, try a money market fund or a high interest savings account to keep the money safe and still have access to it. |
|
xsocialaphasiax
 |
It just depends. What I would do is once you get around $5-$7 thousand. I would put it in a CD. If you are concerned that you might need the money and it would be tied up, Bank Of America has a risk free CD that is paying a high rate right now. Risk free means that you can withdraw or close the CD without a penalty. So its something to think about. |
|
Aubrey
|
well, i do that with my money. i do have bills though but whatever i save i put into a travel fund. I have lots of friends from other countries and when one invites me to stay over with them for a few days, i have the money for it. also, if they want to come visit me, i can host them. but that's me... :) sounds like a good plan. :) very very wise of you to not get usless bills right now. 17 and making money???? WOW!!! You're amazing! |
|
♥APPLE CRUMBLE♥
|
yes save now splash out later. 700 a month is plenty enough to by the nessecities. good luck i hope you do well with hairdrressing |
|
Califrich
|
Since you will need this money in a short while, you should not invest in stocks, because you could lose much or all of your savings. Your aim should be capital preservation. Your best bet would be a money market account. They pay relatively high interest and are fairly safe. They try to maintain their share value at $1 per share, and usually they succeed, though it is possible that they could drop below this and you would lose money (this is very unlikely, however). You could also try a short-term bond mutual fund. This would pay higher interest, but you would also risk losing money. As interest rates rise, the value of the shares would fall. |
|
the_wayward1
|
money market is a safe way to keep your money accessible and get a better return than a savings account. CD's would be another option if you wont need to touch the money for a while. |
|
joy s
 |
you are off to a good start. keep your head straight and stick to your plan.
I would save my money in a good CD rate with a bank. also, if your company have 401k plan, you should paticipate in it. that will allow you to save for the future. |
|
iswthunder
|
If you are looking for something safe, go with a high interest savings account like an ING account...It also helps you save b/c you dont have instant access to your money.
If you are looking for bigger gains, go with an investment company. |
|
blondone
|
I don't know your living situation, but if I were you, I'd try to save $700 and spend $500. Invest in land. And stocks. I invested in 4 properties, and one has sold so far and I already made all y money back! |
|
your mom is a violation notice
|
youre 17 and already a full time hair dresser? How did you finish college already?
Dont give me a thumbs down, it was a serious question and i would appreciate a reply. |
|
Rakin H
|
spend as less money as possible and save the left over cash |
|
swimmy567
|
It seems like most people these days invest all their life savings, and then soon regret it.
It seems like you have a good plan, soo... I would say go ahead and invest. |
|
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
