[enorth]

Originally Posted by maat55

I would suggest at your age to start reading books on personal finance. I didn't learn the inportance to good money management till too late in life. Here are some books that will help you a lot.

The Total Money Makeover by Dave Ramsey.
The Millionaire Next Door
Rich Dad Poor Dad
The Wealthy Barber
Master your Money by Ron Blue

The core of what you learn in good money management is to not take on consumer debt and invest at least 10% of your income no matter what. In the book Rich Dad Poor Dad it teaches that most people use most of their income to buy liabilities and not enough assets. Your home is also a liability.

Learn to save and invest at least 10% of your income.
Do not run up balances on any credit cards. (Always pay in full every month)
Pay cash for your cars and tv's etc.

You can setup an account at Scottrade's to buy Mutual funds through their NTF program. Or check your bank for an investment adviser, but do not pay any commissions. Good luck.

Thanks for the advice. I'll look into getting a book or two.

Originally Posted by Broken Arrow

Can I ask a quick question? What exactly do you do for ConocoPhilips and what do you think of that company in general?

I work in A&OI, which is Assets and Operating Integrity. Most of what I do has to do with equipment inspections, maintenance scheduling, and that sort of thing. I use a computer program you mnay have seen advertised called SAP. Overall my experience with ConocoPhillips has been good. I'm learning an incredible amount, making pretty good money, and growing my social network with people that will be able to help me succeed in the future. I really like Conoco...

Originally Posted by Like2Plan

enorth,
I am assuming that you are not going to need the $2500.00 in the near future for college (or other) expenses. By near future, I mean within 5 years. If not, a roth would be the first thing I would invest in if I were you. You should read up on the Roth IRA as it is a pretty nifty way to save for retirement, but you can also withdraw the money under certain conditions penalty free. If you start one now, you have started the clock ticking towards having it established for 5 years.
Link to Roth IRA
Link to IRS info on Roth IRA

Vanguard is another very good company. However, Vanguard has a 3,000 minimum to invest, (I don't know how doable it would be to come up with another $500.00 to establish a Vanguard account) Link to Vanguard

I will not need this money in the next five years... Almost for sure. I'm definitely going to see what I can learn about the Roth IRA because starting this early, I hsould be able to have a pretty good sized one by retirement age. I'm going to look into Vanguard. $3,000 is certainly within reach for me. Would you say cashing in my bonds and throwing them into a Roth would be a good move right now? Thanks for the help!

Originally Posted by BTC

Don't spend it on drugs and alcohol, or at least not all of it.

No sir. Drugs and alcohol are NOT assets, ha.

Originally Posted by jIM_Ohio

I would look to contribute yearly max to a Roth IRA (5k). $500/month for 10 months would work.

Because we are late in year, use January-April contributions as prior year (until you hit 5k max).

I would also keep around 5-10k in a savings account or moderate investment of sorts. Liquidity is important. What if your car breaks down? What if parents kick you out? What if something unexpected happens?

I think 5k in a high yield savings account or laddered CDs makes sense. Then keep another 5k in a non retirement account for other reasons (larger car repair, something else).

Leave the Roth IRA alone (just add to it like a good habit).
Use the taxable account to fund intermediate goals. Maybe get a condo in a year, then rent out rooms to other students while in school (to help pay the bills).

Use these next two years to get cash heavy. Once you are cash heavy you will have more choices.

Great points. I'll keep them in mind. Thanks!

Originally Posted by LuxLiving

First set aside a portion of it for an emergency fund. What about car repairs? How will you take care of those if they come up?

Once those areas are covered, then, I'd look at doing a Roth IRA invested in index funds.

You say set aside a portion, how much do you recommend and where would you recommend I put it? Savings?

Originally Posted by disneysteve

Are you getting a free ride at home or are you paying rent, contributing toward groceries and utilities, etc.?

How about college? Who is paying for tuition, books, fees, etc.?

How soon do you plan to get your own place? You need to save up for that - security deposit, a couple of month's worth of rent, furniture, etc. I would do that in a high yield money market account.

I think a Roth is a great idea, too, of course, but I suspect there are short-term needs that need to be addressed.

I'll get basically a free ride as long as I'm living at home. I'm not sure how long that will last, but not more than a year - maybe two. I'll work something out with my parents for college. Because I'm staying home and going to a junior college, it will be considerably less expensive, though. I'll probably pay for some of it. I'm not really thinking about my own place as of right now, but thanks for that advice. How much do you think it would be wise to have ready for that?