What to do?

[khalifa]

I'm currently 23 and living at home. I make around $1,200/m and my expenses are $300/m. What should I be doing with my extra money? I have a decent savings for emergencies but am looking to get more out of the money I earn while I can still take advantage of low living expenses.

[cooliemae]

Start up a Roth IRA and max it out each year, a large investment like that at your age would generate a large return when you go to retire....

[jpg7n16]

Have you considered getting a degree? the spread on your income to expenses is nice now, but what's your plan for the future? You can't live on $14k/year forever.

I would consider using your $900 extra to pay for improving yourself through education (gain knowledge) - or look into internships while your expenses are so low (gain experience).


With where you are right now, I think the best investment you can make is in yourself (corny, but true). Yes - even better than the Roth.

Because a degree that lets you get a job that earns even $50-60k+ for the rest of your life, makes a much bigger difference in your financial life, than investing $900/month for 4 years.


Though if you already have a degree, and are working your way up the corporate ladder from the bottom- then I'd likely fund a Roth.

[khalifa]

I am currently in school and have about 2 years left, during which I will be living at home. The money I make other than cell phone bill, car insurance, etc. is all mine to spend. I want to set up a good base for when I move out on my own after obtaining my degree. I should have added that before.

[maat55]

I would apply 200 towards a Roth, 250 towards a car fund and the rest towards a house fund. You may find other use for the house fund, but it could be a head start for later.

[solvision]

I would be buying positive cashflow rental properties. A great place to start learning about it would be the Rich Dad Poor Dad series of books by Robert Kiyosaki, and also Dolf de Roos, 52 Homes in 52 Weeks.

[KennySoward]

I agree with JPG. At your age, you really need to be thinking of ways to grow your income. Glad to hear you are in school, as that is the first step. I would then get some money in the bank ($10,000) if you can; this is for your next big investment, your house. If you can put some into investing (as MAAT said) then that is great too.

All in all, seems like you are on the right track.

Kenny