Swu20
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First - think about what you want to do with your decent job in the future. Is there room to move up? Is it a specialized trade where you can start your own business in your trade when you turn 28? If not, you should think about either going to college or going to trade school. Many people who learn a trade wind up owning their own business and doing VERY well... think of this, 75+% of business in America are small businesses!
Second - make a budget. Before you start thinking about investing, figure out exactly where your money is going! Then, you can modify your spending habits (obviously, you can't skip out on rent or mortgage payments, insurance, etc.)
Third - create a goal. If your goal is to own your own home for instance, that will be your excuse to tell your friends you don't want to drink 80 beers on the weekend or whatever... your friends will not knock on you for wanting to do something like that; otherwise, find new ones... because your "friends" are keeping you down.
Four - investments. Now you can start thinking about where you should place all that money that you budgeted on saving! Depending on how far down the road you plan on obtaining your goals, you can put your money into an online, High-Yield, savings account for liquidity purposes or start putting it into mutual funds for longer range projects. However, for retirement, go with a ROTH IRA!!! You will probably be earning more money when you are in your 50's-60's than you are now. ROTH IRA's are after-tax investments and your investment grows tax free and withdraw tax free when you retire. ALSO, you can withdraw the principal amount if it has been in the ROTH IRA for over 5yrs! (example = you put in 4,000 per year for 5 years = $20,000. You can withdraw $4,000 in that 5 or 6th year tax and PENALTY FREE.)
GOODLUCK... planning ahead is always key, and willpower to stick to your plan is ESSENTIAL! |
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