Money-- best thing to do with it?

[koolaidnovel]

I'm a college student at an expensive private university-- and now that I started making money at a part time job in the mall, I ... seriously don't know what to do with it.

 

Well, I obviously have suggestions such as: save up for school books, paying for college, etc... but it's always about school. I mean, I only have about 2,000 something saved up in a savings account... and this college is pretty damn expensive... so I wouldn't even make a dent in cutting down the college expenses. I'll still have huge loans to pay off after I graduate!

 

My mom is all about using the money to pay for college, and it makes sense because we are not very well-off... not really struggling, but we're middle class and we kind of walk a tight rope... but at the same time... it's MY money for the first time, and I want to do what I want with it, and I don't know the best thing. I mean, should I save up for traveling or something? I honestly want to use it for the best thing possible but... I don't know what that would be.

 

So basically, just wondering if anyone open-minded could give me some ideas. I'm so lost.

 

Maybe I should just spend it all on luxury trivial things such as clothing... because it might make me happier than just seeing the money disappear into the black hole of "COLLEGE MONEY".

[brando]

there are a few internet savings accounts that give you 5 % intrest on a savngs account. I would put the money there. You need at least two accounts, 1) a local bank account where you can access money via a teller, or ATM. 2) The internet savings account. You need to write a check to them for the intial deposit. The idea is to link the two accounts online. If you leave some money in the internet savings account(no minimum balance is required for most) the money will grow at a much better rate than a lousy local bank. Plus it is a liquid asset, where you can draw from that savings if needed. It is said to try and save at least 10 % of your income each week. Put it away and don't think about it, unless absolutely necessary.

 

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[Beyondthesea]

Personally I would help your family pay for college. No one paid for mine! I've always had to work and go to school at the same time.

 

What I did is take a small amount and say it is mine to use toward whatever I like every year (AKA vacation fund) and the rest of it goes towards college. At the end of college, if you've spent wisely, you should have enough for your vacation and still contributed to your college.

 

Your family shouldn't have to foot the bill, it's your education.

[Spugly Fuglet]

You take your 2000 and look around for what you can buy that others need at school, work out the lowedst cost you can get it for thats Buy all they why up to handing the comodity ofver to the custimer, Storage cost, shipping etc. They get 1000 woth and see if you can sell it with a good make up, if you can not get a better reteurn than 10% put in n the bank. The other 1000 you start your one company. Get it registared, think of a name if will not do much for the 1st year but you will know how to do a tax retuern and see what paperwork is needed to have one. If you invent, design, crate anything it can be used as a holding tool for the IP.

 

Thats what I would do.

Nothing like having your own bussness.

[sumguy]

Dump it in a savers account, you can always withdraw it later if you need it, and you'll be making interest in the meantime. One day - maybe soon - you'll find something you'll want, or something you need, that the money can contribute to.

[renaissancewoman101]

It's YOUR money for once. If it is a pretty good chunk, save half and put the other half towards a vacation. It sounds as though you have already been putting other money towards college expenses and you do have loans to cover the expenses. Splurge on yourself a bit. You are important too. Remember there is always later to pay your loans back and stuff after you get a good job. Enjoy life a bit while you are in college before you get out in the "real world" and have to worry about TONS more than you are worrying about now.

[Bethany]

I'm with ren, split it in half. Use one for spending, but don't waste it on material disposable things as you will regret it. The other half, save for a rainy day because in life, believe me, there WILL be a few rainy days.

[Spugly Fuglet]

O come on you lot, save and spend is that the best you can do, sorry but there is a 3ed way here, Speculate to Aculate.

 

Start a bussness, inver in your self and your skills, you never know you may have the nack for selling.

 

Half in the bank half to buy the bank.

[jurupa]

Do not start your own business as you do not have enough money nor the means to run one. Plus if you go bankrupt you will be worse off that you where, a lot worse.

 

Seondly put the money into a savings account and let it stay there as long as possible. Only pull out money for things you must pay for, like college, food, clothes, etc. And to make sure you do not waste your money, shop around for the cheapest price on what you need. Only buy wants that do not cost that much and you can fit it in your budget. Also when you are shopping for something, decided if it is a need or a want, becuase I bet you will find out that you have a lot of wants, but a few needs and spending money on just the needs alone will save you money down the road to buy the wants you want later on.

 

Third budget budget budget. Manage your money to the very penny while you spend it and earn it. This means checking your pay checks to make sure you are getting the correct amount and check recits to make sure you paid the correct price for something. I know this may seem "extreme", but this is close to what I do with my money. This is close to what I do with my money.

[NJRon]

Dump it in a money market savings account and use it when you graduate to support yourself and/or take a trip. Money is best used for experiences and not things.

[Spugly Fuglet]

Do not start your own business as you do not have enough money nor the means to run one. Plus if you go bankrupt you will be worse off that you where, a lot worse..

 

No your wrong, a small limited, business even if it dos not tard can be a hold pen for IP and a good thing to learn to do. As for bankrupting some one yes that is the chance you take, if your goul in life is to be a wage slave then dnt do it but and heres the big one you can get fired from you job and still go bankrupt. here in the UK you can start a company for as little as £250 ($450)

do you own books each year this isa good set of skill to pick up and gives you a chnace latter. I did say put half in the back just as you would do.

 

And to make sure you do not waste your money, shop around for the cheapest price on what you need. Only buy wants that do not cost that much and you can fit it in your budget. Also when you are shopping for something, decided if it is a need or a want, becuase I bet you will find out that you have a lot of wants, but a few needs and spending money on just the needs alone will save you money down the road to buy the wants you want later on.

 

Third budget budget budget. Manage your money to the very penny while you spend it and earn it. This means checking your pay checks to make sure you are getting the correct amount and check recits to make sure you paid the correct price for something. I know this may seem "extreme", but this is close to what I do with my money. This is close to what I do with my money.

 

No risk in other words, well if thats your aim inlife then fine, for for a small out lay you could pick up skills for life.

 

But in the end its your call, we are here only to give points of view.

[now_better]

$2000 may sound like a lot to you at a young age, but in the real world, $2000 will evaporate fairly quickly if you live by yourself (rent, utilities, car payments, etc).

 

if you talk to any smart financial advisor, they will all tell you the same thing. you need to build up a minimum of a 3-6 month "emergency" fund that is always available (take how much you spend per month multiple by 3 or 6 and this is the minimum you need in this account. for me, this is about $3k - $6k as my monthly expenses average to less

 

after you've built up this fund, then you can begin to set some short-term, long-term goals with your money. personally, i put 13% of my income directly into retirement accounts (it never ever touches my bank accounts, goes straight to a retirement account so it doesn't affect my spending habits). obviously, you will want to enjoy your money (take trips, buy presents, stuff for yourself, etc), but it's important that you try to Live Below Your Means (LBYM). do not start spending a lot of money suddenly otherwise you will form bad habits that could haunt you for life. if you follow the LBYM philosophy throughout life, you will never worry about money. because i'm always consciousness of how much i have and i always spend well below my means, i never have to think about IF i can afford my rent next month, IF i can go fly to a foreign country to take a vacation. you can do it all as long as your responsible.

[jurupa]

No your wrong, a small limited, business even if it dos not tard can be a hold pen for IP and a good thing to learn to do. As for bankrupting some one yes that is the chance you take, if your goul in life is to be a wage slave then dnt do it but and heres the big one you can get fired from you job and still go bankrupt. here in the UK you can start a company for as little as £250 ($450)

do you own books each year this isa good set of skill to pick up and gives you a chnace latter. I did say put half in the back just as you would do.

I agree running your own business can be a good thing, But the oringal poster said that she needs to and wants to help pay for her college education. That alone will suck up a lot of her money that she makes from working. So money is already an issuse and you tend to need money to run a business. Yes you do learn new skills and possibly improve on ones you already have, but running a business is not for everyone tho and it is up to the oirngal poster to decided that. I am also aware that you can make good money from running your own business, but unlike a wage/salary job it could be weeks or months before you can see any money coming in or having money you could take out of the business for personal use.

 

 

No risk in other words, well if thats your aim inlife then fine, for for a small out lay you could pick up skills for life.

 

But in the end its your call, we are here only to give points of view.

But yet I am taking a risk with my own money and so far it has been working out actually. I have my own ROTH (It is very much like a 401k, I don't what it would be called in Great Britain tho) and in roughly 2 years I have made $2,000 (£1094.63) from it. And the money that is in there is 100% mine as put in my own money into it. And far as taking more risk with my money I may open up my own business in the near future. But unlike the oringal poster I have a lot more money to use for such a thing.

 

I am not totally sure what you mean by "a small out lay", but I think you mean running a business tho. If so yes this is true, but in my view learning skills for life are learned every where, and you can not just learn them in one enivorment. The reason I told the oringal poster not to take risks, is becuase of her suitation does not allow for such things at least in my mind.

 

And I agree with you 100% on us just expressing our views.

[NJRon]

Starting your own business, while it requires money, money should not be your purpose.

 

I don't want to take thi soff track, as she is trying to figure out what she should do with her extra money. Not that she does something that she really enjoys and wonders if she can make money with it.

 

90% of small businesses fail. I do not see that as a valid investment if you are doing so for the mere purpose of making money.