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AnachitlPut

AnachitlPut

Member
Joined
Nov 7, 2010
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308
Location
San Antonio
hey i just wanted to see what your thoughts were i am 16 and started makin money and i wanted to know what should i do with it?
 
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Second on the savings. Regardless of the amount you save each week/month, make sure you stick to it every time, (or more). When you get used to putting it away and see it start to grow, it'll become second nature. If not habit forming.
 
Figure out what is going to be the hot collectible in 25 years and buy it now while it is cheap. Sell it later as NOS (New Old Stock) and you will make a killing. Of course figuring out the hot collectible is going to be the hard part. Just think what a case of Parker Duofolds new in the box would be worth today. A heck of a lot more than the 1/4% interest the banks are paying today.

Now back to reality......Save your money. It may not gain much interest but it sure won't loose anything. Do that and you will be way ahead of your peers who most likely will spend it faster than they make it.
 
Saving is the way to go, but if saving is all you do with your money, that will get BORING real quick. Absolutely set aside a given amount to place in savings, but keep out a bit for yourself to spend on something you want that Mom or Dad won't buy for you.

Charles
 
I would look into a ROTH IRA. There is a limit which you can contribute per year, something like $3500. Over time with regular contributions and compound interest, you will have a nice retirement account. ROTH IRA's are tax deferred, meaning that you will pay tax on it when you start to withdraw it. You should also save some of it in a traditional savings account. As it [the savings] grows move a chunk into a longer term investment, say a CD or certificate of deposit. They typically pay better interest. You should always keep some of it available, i.e. liquid. With all this talk of savings, don't forget to spend a bit on a hobby you are interested in. Working hard for your money entitles you to rewards now and again
 
Only supporting what Maxwell Smart007 mentioned..

Two words that they will never teach you in school but absolutely should...


Compound Interest


....It is indeed a beautiful thing.

I'm quite impressed you are actually asking these kind of questions.
Keep that up.

At 16 I was.....well, we'd better not go there..:wink:
 
At your age savings will go a LONG way. Every year earlier you start will net great results! You might consider something short term to save for a down payment on a house or education. Looking back I could have saved $20,000 easily between 16-21 had I thought about it (that's only $64/wk and wouldn't account for interest).

When I was 16 and had spare money I bought tools. I now have a fully outfitted over flowing tool chest with all the tools I need to work on my truck, do maintenance around the house and countless other things. This may not be for you but it has saved me tons on money from having to pay someone to do things.

AK
 
Yes, as others have said, look into IRA's, depending on what taxes are like in 40 years or so and what other investments you could make, a Roth may or not be better, but I'd bet it will be... I know it might sound crazy to worry about retirement when your 16, but the earlier you start, the better off you will be... and possibly your kids... and you kids' kids! Be smart with your money always! Don't be like everyone else around you, like Dave Ramsey says, "If you will live like no one else, later you can live like no one else."
 
Spend half of it on partying, gambling and fun and then waste the other half. I only regret the good times I missed not the money I did not save
 
Have fun with half and save the other half. This was the advice given to me by someone and I did not listen. Yep those were some good times but the mornings after were hell. I should have listened.
 
Stereo. big speakers. the bigger the better. Turn it up loud!!

That's what I did with my first paycheck.

Then I learned better.........
 
Jarod888 said:
I would look into a ROTH IRA. There is a limit which you can contribute per year, something like $3500. Over time with regular contributions and compound interest, you will have a nice retirement account. ROTH IRA's are tax deferred, meaning that you will pay tax on it when you start to withdraw it. You should also save some of it in a traditional savings account. As it [the savings] grows move a chunk into a longer term investment, say a CD or certificate of deposit. They typically pay better interest. You should always keep some of it available, i.e. liquid. With all this talk of savings, don't forget to spend a bit on a hobby you are interested in. Working hard for your money entitles you to rewards now and again
Click to expand...

Not to nitpick, but if you are making a decision, the facts upon which you base your choices should be correct.

According to the PRESENT law: You will NOT pay tax on the Roth IRA when you withdraw, you put money into the account that is "after tax dollars". When you make withdrawals they are supposed to be tax free.

Now, there is certainly the possibility that the Federal government will CHANGE that and screw you later. But that is another fact you should get used to .
 
Luke Putman said:
hey i just wanted to see what your thoughts were i am 16 and started makin money and i wanted to know what should i do with it?
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Invest in your further education. Save the money for college and if your college is already paid for, use the money for a basic automobile, food, etc. while in college. Anything left over can be invested for your future.:biggrin:

You will never look back and say "that was a bad investment of my money.":wink:
 
I really want to disagree with the folks here! I desperately want to tell you to travle, be a drifter for a while and experiance life! Some of the most "educational" moments of my life where spent tryin to warm up under an overpass wondering where the hell my next meal was going to come from.....the experiance also damn near killed me more than once!

So pay for college.....then save enough for a nice safe bike tour of Europe! Take a year or two, have some fun, learn about a culture that values its past more than it's fast food! Have sex in a hammock with some one you dont even know and fall in the Rhine at Oktoberfest! Fall in love with a painting in some little french museum and watch it for hours. Become obsessed with meeting some exotic older woman whose eye you caught at that wonderful little cafe'...........eat food that sounds gross!

Travel but only after you insure a prosperous future for yourself and dont starve during your trip!
 
I wish I could remember the details of a story I have heard but the jist of it is this -- twins, one more frugal than the other -- one started saving 'X' dollars every month when he was 18, the other started saving the same amount but waited until he was 25. (I think the second one actually saved more $$ but at the later date) When they both retired, the difference between their total savings was huge, the one starting earlier, with less $$ came out way ahead. I'm sure someone may be able to correct the ages and actual $$ -- I don't remember exactly but it was close. The moral is this -- if you save a small amount early it really grows.

Spoken by someone who never saved while young and has very little to his name today as Social Security starts.

When exactly do the "Golden Years" start????

Jeff in northern Wisconsin
 
ed4copies said:
Jarod888 said:
I would look into a ROTH IRA. There is a limit which you can contribute per year, something like $3500. Over time with regular contributions and compound interest, you will have a nice retirement account. ROTH IRA's are tax deferred, meaning that you will pay tax on it when you start to withdraw it. You should also save some of it in a traditional savings account. As it [the savings] grows move a chunk into a longer term investment, say a CD or certificate of deposit. They typically pay better interest. You should always keep some of it available, i.e. liquid. With all this talk of savings, don't forget to spend a bit on a hobby you are interested in. Working hard for your money entitles you to rewards now and again
Click to expand...

Not to nitpick, but if you are making a decision, the facts upon which you base your choices should be correct.

According to the PRESENT law: You will NOT pay tax on the Roth IRA when you withdraw, you put money into the account that is "after tax dollars". When you make withdrawals they are supposed to be tax free.

Now, there is certainly the possibility that the Federal government will CHANGE that and screw you later. But that is another fact you should get used to .
Click to expand...
It's regular IRA's that are tax-deferred. It's good to have both- for regular expenses in your retirement, you dip into your IRA, but not so much that you get into a higher tax bracket than when you paid into it. If you have a big expense, you dip into the ROTH so you don't have to pay taxes on it.
 
I would recommend that you NOT attempt to "tax-plan" your retirement until you are well into your 60's. You won't be able to get full Social Security (if it still exists in any form) until you are over 70, 50 years from now. Average life span will be close to 100.

There is no way in heck you can guess what the tax laws will look like.

(I wouldn't really want to predict 2025, the way things are going now)
 
If saving for the long term is not what you want to do. I would say save for a trip to Europe. Its a totally different culture that everyone should experience.
 
If saving for the long term is not what you want to do. I would say save for a trip to Europe. Its a totally different culture that everyone should experience.
 
This is a little different advice....Save 50% - my goodness you are only 16 don't give a second thought to what you'll need when you're 65. 1/2 of your savings should be short term in case you need or want something.

Give 10% to church and/or charity. Spend the rest.

If you are earning a large amount of money, talk to an investment advisor, which most of us aren't.

One other small piece of advice - NEVER get wrapped around the axle about money If you got it spend it, if you don't have it don't spend it. My personal credo has always been "The Lord Provides".
 
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