i want to be rich when i grow up. maybe not beverly hills rich so much, but i want to have luxury. im 16, and tomorrow im applying for jobs. i figure if i get the one i want and put away 20% of every check ill have around 2,000 dollars in savings.im gonna go to college (city, state, then a uc) will saving the 2,000 dollars really help me out that much, or should i put more money away?
2006-08-06 11:23:46 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
In Dave Ramsey's book, Financial Peace, he has a GREAT chart that shows what happens to two people who save $2000 per year.
Ben invests $2000 per year at 12% starting at age 19 and ENDING at age 26 (he's invested $16,000). He never adds another cent and never touches the money. At 65, he has $2,288,996.
Arthur invests the same $2000 per year at the same 12% starting at age 27 and never stopping. At 65, after investing $78,000 over 39 years, he has $1,532,166. He NEVER catches up with Ben.
Start early and don't stop.
2006-08-07 04:42:38 · answer #1 · answered by homeschoolmom 5 · 0⤊ 0⤋
You definetley should save as much as possible. Apply for lots of scholarships and grants for college. Also, work while in college and save that money as well. Don't blow your money on bull crap because when college is over, reality will hit you and you'll have bills to pay and you'll probably need a little bit of that savings. Plus, you will need something while you look for a good job. Also, find a high-yeild savings account. Normal savings accounts have less than 1 percent interest, but you can find accounts online, and possibly at a local bank that will pay as much as 5%. That means that the more you put in the bank, the more you will get back.
2006-08-06 19:12:54 · answer #2 · answered by Candice F 3 · 0⤊ 0⤋
It is wonderful that you are thinking of saving. I wish I had started young. 2,000 is a good start. If you can manage to save more, all the better. You won't regret money saved. Just remember that when applying for financial aid for school, having the money in your account may increase what they expect you to pay for school. You may want to start looking into IRA's and such. That way the money will start growing and will be safe. The earlier you start saving for retirement the better, and you will indeed have more room for luxuries later on.
2006-08-07 20:59:58 · answer #3 · answered by meltee 3 · 0⤊ 0⤋
Any money saved is great. It doesn't matter how much you start with as long as you increase it every opportunity you have. Continue to save on a regular schedule. Yes the more you save the sooner you will have reached your goal. Invest in a good investment broker. Good Luck you will make it big.
PS. Best investment in the world is education!!!
2006-08-06 18:52:41 · answer #4 · answered by helpme 2 · 0⤊ 0⤋
Any money saved will help you out so save as much as possible and get a good education and maybe work part time there and you will have a nice nest egg built up in 5 years. Good luck and good attitude too .
2006-08-06 18:28:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
$2,000 is lunch money in the real world if you can put away $200,000 It might tide you over 4 yrs of collage "if" some El's is paying your school expenses
2006-08-06 18:36:13 · answer #6 · answered by stillhappy89 4 · 0⤊ 0⤋
If nothing else, it will be nice to have the cash, so you don;t have to work so much
2006-08-06 18:31:12 · answer #7 · answered by billyandgaby 7 · 0⤊ 0⤋