Need help with Personal finance! (19)

[TylerHartman]

Hello, I'm new here I'm Tyler, I just turned 19, I just bought my self a car a couple of months ago (2004 Honda element) Paid cash for it quite proud of that, I'm wanting to know what I should be doing with my spare money. I have a virtual wallet acct at PNC so I have a savings acct, checking, and a reserve for bills, I have a credit card at capital one but I don't buy anything unless I can go home and pay it off right away I don't think of it as free money like some haha, Basically I wanting to know more or less about investing and Retirement. I just opened a Betterment for that But i'm not sure if that's a good place or not so that's why I joined i'm wanting to learn more. also of ways of growing my credit score!

I feel I Manage my money pretty well I use mint.com for my book keeping.

Estimated monthly
Car insurance 150$
Gas, and Other Car related stuff such service 70$
Cell phone bill 35$
Personal miscellaneous 55$
That means my spending on average is 310$ Leaving me with spare money to invest, Save, Etc..

Normally I profit 700+ A month it isn't alot but It works for me now.


I don't have a said income I work for my self as a Self employed eBay seller, so starting to save for retirement is important as is savings because I'll never know what I'll sell tomorrow.

Thanks, Tyler!

[Anton martin]

Start Saving For Your Retired Life

Well, you are doing good and also saving good money. I would like to sugget you to start saving inn 401(k), for self employed. There are few rules and changes in self employed 401(k), that you will get better idea from financial expert. Also you have option of IRA to save for retirement.

[ua_guy]

I think you're doing fine right now, but I don't know enough about your goals to suggest things.

Are you planning to go to college?

What do you want to do for a career?

You mentioned no "living" expenses. I assume you live with your folks, and if yes, what are your plans for eventually moving out?

Retirement funds and investments are both important things, but at this stage in your life, so is becoming your own self-supporting person. Things like establishing an income or educational goal (and how to pay for that), as well as living on your own and covering the sum total of your expenses...all important stuff!

[BMEPhDinCO]

I agree with ua_guy - what are your longer term goals? While it looks like you have the right idea, what do you want from your life?

Also, a side note, if you are "self-employed", make sure you are paying your quarterly taxes - otherwise you can get hit with a huge penalty if you wait until April. You can also open a SIMPLEIRA or a SEPIRA and if you put in the "self-employed" money, it is not taxed - you can put in quite a bit more than a traditional IRA. Another option is a RothIRA.

Figure out your long term goals, set up an emergency fund (I use Ally Bank) and put in at least $1k, and then keep moving forward in a responsible way!

[TylerHartman]

I agree with ua_guy - what are your longer term goals? While it looks like you have the right idea, what do you want from your life?

Also, a side note, if you are "self-employed", make sure you are paying your quarterly taxes - otherwise you can get hit with a huge penalty if you wait until April. You can also open a SIMPLEIRA or a SEPIRA and if you put in the "self-employed" money, it is not taxed - you can put in quite a bit more than a traditional IRA. Another option is a RothIRA.

Figure out your long term goals, set up an emergency fund (I use Ally Bank) and put in at least $1k, and then keep moving forward in a responsible way!

My Long Term goals, I'm not sure my self yet! I'm planing on at least taking classes in Spring of next year even if i'm not full time, For business or IT (Information Technology). I'd like to own my house someday, not mega house and decent modest house like in the 120-170K Range. I know I don't want to live in the consent debt most people live in these day and ages.

Personally I'm not sure how to even go about that, is there a different area on the site to ask more " tax " related questions? HELP ME!

Yes, A Emergency Fund is a very good Idea. Infact I used to bank at Ally till I was car shopping and there was really no at the moment way to get my funds out all 5000+ I started getting 400 out at everyday and then I just got a check from them and Had to wait 3days and So I opened my PNC Account up, I Still have my Ally Maybe I should use my old savings account I still have a little money hanging around there and use it for my Emergency fund.

Thanks so much, for all the help!

[TylerHartman]

I think you're doing fine right now, but I don't know enough about your goals to suggest things.

Are you planning to go to college?

What do you want to do for a career?

You mentioned no "living" expenses. I assume you live with your folks, and if yes, what are your plans for eventually moving out?

Retirement funds and investments are both important things, but at this stage in your life, so is becoming your own self-supporting person. Things like establishing an income or educational goal (and how to pay for that), as well as living on your own and covering the sum total of your expenses...all important stuff!

Yes, I do. I haven't applied anywhere

IT field or own my own business

Yes, I live with my Parents yet, I've not really gave to horribly much thought yet I'm planing to live at home at least till I can Finish school and get a job.

[fosho]

How do you plan on paying for school? School Loans, Cash, scholarships?

Unless you are getting grant money or something along those lines I would start saving some of that extra money to pay for your schooling so you don't have to go into too much debt for that. As for an emergency fund 3 months should be more than enough since your living with your parents. I would also start investing in a Roth IRA even if its just 50-150 a month just to get it started if your worried about retirement. I think you are doing well, esp for your age.

[TylerHartman]

How do you plan on paying for school? School Loans, Cash, scholarships?

Unless you are getting grant money or something along those lines I would start saving some of that extra money to pay for your schooling so you don't have to go into too much debt for that. As for an emergency fund 3 months should be more than enough since your living with your parents. I would also start investing in a Roth IRA even if its just 50-150 a month just to get it started if your worried about retirement. I think you are doing well, esp for your age.

I'll try my best to keep up with paying for it myself, I doubt I'd be able to get a Scholarship. so having cash available for that is what i'm aiming for!

[TylerHartman]

Sounds like you need an advice dude. Try to consult a financial professional. They can give sound insights regarding your financial situation. You can also have a better understanding of various financial options by working with them.

okay... Yes! That's why I Joined a Forum called SavingAdvice.

[siggy_freud]

Try to consult a financial professional.

I don't see a need for that at this point. Just stick with advice the pros here give you and you'll be okay.

[BMEPhDinCO]

Some feedback on your answers:

"My Long Term goals, I'm not sure my self yet! I'm planing on at least taking classes in Spring of next year even if i'm not full time, For business or IT (Information Technology). I'd like to own my house someday, not mega house and decent modest house like in the 120-170K Range. I know I don't want to live in the consent debt most people live in these day and ages. Good statements here! So you are looking at $24-$34k downpayment, that's one good goal to start working towards. Add in another $2k for 2 months mortgage payments in addition to the downpayment.

Personally I'm not sure how to even go about that, is there a different area on the site to ask more " tax " related questions? HELP ME! Search around for taxes, there are several sites that specialize in self-employment stuff... in general, you can also google it to get a general idea... if you didn't file for last year, today is the deadline and it's important not to miss! You may need to drop by H&R block or something today to get help until you understand it for 2013 - also, 2013 first quarter is due today...

Yes, A Emergency Fund is a very good Idea. Infact I used to bank at Ally till I was car shopping and there was really no at the moment way to get my funds out all 5000+ I started getting 400 out at everyday and then I just got a check from them and Had to wait 3days and So I opened my PNC Account up, I Still have my Ally Maybe I should use my old savings account I still have a little money hanging around there and use it for my Emergency fund.
With Ally bank now, you can transfer (POP money) to another account right away or do an electronic transfer in 2 days - it's easy, just keep a local bank to get the money out, you should be able to plan 2 days ahead to spend that much! And for an Emergency fund, you don't want to have the money TOO easy to access, that helps keeping it only for really hard situations. I do recommend getting their checking account though, it's the same interest as savings and you get a debt card or checks that you can spend immediately if really needed.

Thanks so much, for all the help! "

good luck!