clarkster009

I am in a similar situation to you except a few years older. No debt, no mortgage, but more bills. I only recently looked into financial education, and am trying to get some things going. Before I read a few books, I had the mentality "Debt is bad", "Savings are good", "Invest in a well-diversified portfolio", and "Owning a home is an asset". Debt is not necessarily a bad thing, for instance, getting a loan to buy investment property. You should definitely build up some emergency savings to cover a few months (since you're living at home now this is less of a worry), but just continuing to save in a savings account is not smart. The 1% or less the account pays in interest is less than the inflation, especially as more debt is pumped out each day. Investing only in stocks is not diversification, and mutual funds and the like take a large part of your investment in fees, while you have 100% of the risk. Buying a home is your biggest liability, not your greatest asset. I wouldn't buy for appreciation, even in this economy, although this is a better time to buy than a few years ago, especially with a 740 credit score. Have you seen the difference 1% in interest makes on your mortgage? It is several hundred dollars a month, so make sure to keep your credit score up. I can't give you any actual advice because I am still educating myself and looking for ways to increase my capital, but good luck!

Btw, what is your job if you don't mind me asking?

P.S. If you have any sort of a commute to work, the best thing to listen to instead of music, is investment books on CD

suprmonky73

I agree on some level, home ownership is not for everyone. If you are prepared for it and think it fits well in your 'plan' then by all means, interest rates are at historic lows still. But you are young and at 22 i didnt have any sort of plan. Now at 26 i have a had 4 years out of college and have a better idea of what I want.

On another level - being smart with your money is the first step. Dont blow it on dumb stuff. Once you have mastered this (not easy for a lot of people) then worry about maximizing the cash you do save.

When it comes to investing your savings there are so many directions you can go, and again it depends on your goals and your views on investing. You can be as passive or active as you desire. If you don't like mutual funds you can do ETF's which are similar to mutual funds but are more like stocks.

I could describe it similarly to how people in the Forced Induction subforum do. A lot of people come in saying 'what do you think about my kit that I am putting together' and every single time the regulars in there say "well, what are your goals. if you want 400hp reliably, do x. If you want to make 700 and have a dyno queen do y.' everyone has different goals and advice is best served on a case by case basis that coincide with your goals.

profit_child

i am also similar position but make alot less an hour... im a walgreens shift manager make about 12 dollars a year and still in college (22 but still have about 3 years left no rush i work alot but i am steady) i have about 3k in my bank and about 20k in assets... i can save about 5-700 a month i constantly look for deals to flip.. rc cars, cell phones, wheels ect. hopefully looking to have enough cash to start flipping cars... ive done very well so far selling items on ebay and i plan to do more n more. but as my money grows it seems to be alot of work to make a couple hundred each time... any suggestions..