I'm 22, I have two trust funds, one with 10K and one with 15K I have no savings accounts, one checking account, no credit cards, no debt and currently the only bill I have is a $50 monthly cell phone bill. I'm graduating college in May and will start working at a salary of 37K a year. Once I start working I will have roughly $500 in bills (rent, cell, car insurance). What I want to know is how much should I put away , how much should I spend on a monthly car payment, how much should I use to play around with for entertainment. Basicly, what should I do with my money? Also, should I do something different with my trust funds? One was setup when I was born and will be mine completely when I graduate, the other is an inhertance held in a trust for me recieve 50% at 25 and 50% at 30 but my father said he can arrange for me to get it earlier. Any Ideas?
2007-11-13 17:49:05 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Pay your bills first and your expenses (including some money for entertainment) and put as much as you can into the car payment to get it paid off as quickly as you can (that way you'll own the car sooner) and don't let them play games with the period of the car loan either.
You want to deal with any debts you have (or manage to create) before trying to invest your money since the interest on most debts is a lot higher then the interest you'll get from an investment.
If you are managing your money well the trust funds should just be treated as part of your normal cash to be used for whatever you need to spend or if you have no debts outstanding and nothing you need to get put into an investment.
2007-11-13 18:47:25 · answer #1 · answered by bestonnet_00 7 · 0⤊ 0⤋
okay...first of all....dont do anything with the inheritance money.....and invest the other one that your parents are giving you when you graduate!
i just bought my first townhome...its expensive and Im only 19, but I figured that by the time Im in my late 20's early 30's I will have the home of my dreams! Its a great investment,.....even if you buy something small like a one bedroom condo!
Next...my car payment is 340 a month! I HATE IT!! I feel like a car payment is a waste of money, but the hard thing about it is that you probably need a car, and your young also and probably dont have that much credit built up, so whatever you do you will probably have a pretty high car payment unless your parents co-sign your loan! I would pay no more than 350 for a car......and make sure its a new car if you are paying that much! My car is an 07 ford focus and the good thing about it is it saves money on gas, and its under warranty for one year!
Next I would try to save up at least three months of living expensed to have put away in a savings account. I do not have any money saved and there are so many times when me and my husband wish we would have a thousand or two saved up. You never know when you might need that extra money....whether your bored and want to go out....your car breaks down....you have to travel on an emergency....whatever, your savings will always help you! So, basically I would have at least 1000 dollars in your savings account at all times....preferably 2000 since Im sure you can afford it! THEN, I would try and put away at least 100 dollars per month in your savings account also,,,that will add up!
2007-11-14 02:40:28 · answer #2 · answered by Nicole S 1 · 0⤊ 0⤋
You should definitely be putting 4K a year away in a ROTH IRA. Additionally you should contribute enough to get a 401K match, if your employer offers one.
Personally I would recommend putting 4K in ROTH IRA. Then I would put the rest in a high yield savings account.
2007-11-14 02:07:49 · answer #3 · answered by VATreasures 6 · 0⤊ 0⤋