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Where put extra cash: $100 for 5 years and $50 for retirement

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alfa147x said:
How much would one need in an emergency fund?
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Well, it is hard to come up with an emergency where anyone would need more than $2000 and where the emergency fund would help. Broken car? $2000 will fix just about anything or just buy a running used car. Broken furnace? $2000 will replace it. Cancer? ~$2000 health insurance deductable. Even bail can usually be paid with $2000.

The only emergency where you need more than ~$2000 is losing a job, but then no emergency fund is usually sufficient if you are out of a job for an extended time. So, if it is insufficient, why struggle to have it?

If you really need more than $2000 in an emergency account, then you have the wrong insurance(s). So, I'd start there as your minimum.
 
dullard said:
Well, it is hard to come up with an emergency where anyone would need more than $2000 and where the emergency fund would help. Broken car? $2000 will fix just about anything or just buy a running used car. Broken furnace? $2000 will replace it. Cancer? ~$2000 health insurance deductable. Even bail can usually be paid with $2000.

The only emergency where you need more than ~$2000 is losing a job, but then no emergency fund is usually sufficient if you are out of a job for an extended time. So, if it is insufficient, why struggle to have it?

If you really need more than $2000 in an emergency account, then you have the wrong insurance(s). So, I'd start there as your minimum.
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This is what I have.
4 month's rent: $2000
Living expenses for 4 months: $800
Car fund: $2000

According to you that might be a bit too much but I feel better having it there. I'm worried that bad things are going to happen to me at the same time that why I have the car listed separately. I'v had this saved for a while, since I started college.
 
dullard said:
ATOT 1, Dullard 0

I had a great post until I saw he was a student.

My advice now is to create an emergency fund. That way, he wouldn't need a $1000 credit card bill + interest every time the university forgets to pay him (my university did that to me twice a year). The next payment isn't double because they take about 3x as much tax out. Sure, it is corrected when you file for taxes, but that is a painful wait for a student.
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Just this thread. Overall, props to you.

The emergency fund ran through my mind but the smart ass poster shoved it aside and I forgot about it.:$
 
I suggest you take that $100 and invest into creating multiple income streams.

Buy some books on how to make money online, how to make money on amazon, youtube partner account,,,,, stuff like that. If you do everything right, you should be able to take that $100 and make money off of it.
 
Texashiker said:
I suggest you take that $100 and invest into creating multiple income streams.

Buy some books on how to make money online, how to make money on amazon, youtube partner account,,,,, stuff like that.
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I already have other income sources. I have spare money not spare time 😉
 
Texashiker said:
I suggest you take that $100 and invest into creating multiple income streams.

Buy some books on how to make money online, how to make money on amazon, youtube partner account,,,,, stuff like that. If you do everything right, you should be able to take that $100 and make money off of it.
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Can't tell if serious?
 
savings account until you get a real job IMO. It's what I did ... then dump whatever your company will match into your 401k.
 
alfa147x said:
I like this idea, thanks!
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This is what I'm doing. My company actually matches up to 5% including bonus'. Oh, I'm also in the stock options program.. woot. I have a nice size savings account that's actually higher interest than the online banks in a capital one brick and mortar account.

One of these days I might open up a Roth, but I'm making more than enough on the 401K to retire according to the calculators.
 
fwiw - while in college, to get into investing, I opened and contributed $50/month into a mutual fund, . It may have only been $600/yr but it forced me to develop a savings habit and a reason to follow the market/investing.
 
Probably something like a Rainbow savings account from Wilshire bank.

Since you're putting the money in as a regular investment, you can pick a 3 year window and, if you open a Wishire checking account to automatically fund your account, you can get 2.79% on your installment savings payements.

I did this 2 years ago and am getting 5% right now.

You cannot put more money into the account other than the regular installments however, the only only drawback that I see.
 
pray4mojo said:
What was your post? I've got some money sitting around and like to explore my options.
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Low income people who want to save a bit into retirement accounts can get the federal retirement savings credit. http://taxes.about.com/od/deductionscredits/qt/retirement.htm

Basically, the federal government will give you 0%, 10%, 20%, or 50% of what you put into an IRA (completely free money in addition to the already generous tax deferral benefits of the IRA) depending on your income. Most people fit into the 0% category since they make too much money. It also has a credit limit, so it is best for people who are only putting a bit away in their first few years.

Thus, it really only applies to the young who are just starting out and wants to put a bit into an IRA (or Roth or similar). The OP sounded like the perfect candidate - except he is a student and that disqualifies him.
 
Emergency/random expense fund. As a college student you're either going to have emergencies come up or a chance to do something incredibly awesome. A car breaking down, a screw up with your check, or any other reason can make you suddenly need money. On the other end of the spectrum, you might get a chance to something awesome that is only possible if you had extra cash.
 
I'm sorry $150 isn't shit, you may as well stuff it under your tinfoil hat or your mattress.
 
Capital One is looking to buy ING Direct's U.S. banking division. So, in answer to your question about ING Direct, "No, it's not a good idea."


While in undergrad, I kept everything liquid and didn't worry about investments. I paid my own way, and I only worked summer internships.

Once I was making the big $16K to $20K/year as a grad student, I opened up a Roth and began stowing some away. Once into a real job, the money that would have meant so much as a student (undergrad) became an insignificant amount compared to what I can stow away now.


Undergrad was a struggle with studying and money (more of a struggle with the competition of academics than a struggle with money--I didn't mind being poor). While in grad school, I worked hard but I also took time to travel around Asia and have some fun. Once you're in a job, it's going to be a lot harder to just pick up and leave for a month. I say, try to enjoy life for now. Don't spend money like an idiot, but don't worry so much about money.


And don't get married until you're at least 30.


And really think about whether that MBA will be a worthwhile investment.


That's my "random dude on the Internet" advice.
 
I know someone whom just sold his stocks. Bought penny stocks at $0.0007 per share, $1000 total. Sold and bank $857,142 before tax. You should look into it.
 
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rcpratt said:
I'm all for saving for retirement as much and as early as possible, I just think it's kind of silly when you're 20 and still in school. If you start when you're 22 with a good job, you'll be in fantastic shape.
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Saving for retirement is MUCH less silly than squandering a significant portion of your disposable income on an engagement ring.
 
Ms. DICKINSON said:
I know someone whom just sold his stocks. Bought penny stocks at $0.0007 per share, $1000 total. Sold and bank $857,142 before tax. You should look into it.
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For every success story dealing with penny stocks, there are $100s of failures. Penny stocks are penny stocks for a reason. It's kinda like when people were buying GM stocks after bankruptcy which was insane.
 
alfa147x said:
Hey guys quick question:

Right now I have about $150 extra coming in every month. I would like to save up for a nice engagement ring + other related expenses in about 5 years. I would like to be able to put into this account $100 a month but that may fluctuate $50± depending on other factors. I also want to start saving for retirement. Right now I can afford to put $50 towards that cause.

How should I save my money? Right now my savings all sits in a savings account. I feel like there are better ways of saving money than that.

A little about me:
I turn 21 later this year

I pay for school off of a large amount of savings i pilled up through high school. <- saving account at credit union. This should be enough to last me through my undergrad.

Currently working an internship. I have $1000 in credit card debt but that's because the University had payroll issues and now instead of two checks I'm getting one large one :\. That should be payed off in full next month. Purchase APR on that card is currently 0&#37; it will stay like that till June.

Let me know if I forgot something.

Thanks guys!
Alfa147x
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engagement ring already?
i take it things worked out with you and this girl from last month?


 
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