Have 3.2k going into college next year

Carnalpleasure
Carnalpleasure

Have 3.2k going into college next year. What should I do with the money? I'm thinking of investing it or just putting it in a savings account, but idk. Will probably work during the school year too.

I have a meal plan, which is 20 meals or so a week. Oh and my college is payed for, so no worries about denbts.

All urls found in this thread:
http://www.helpfulcalculators.com/compound-interest-calculator
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/compound-interest-calculator
http://www.helpfulcalculators.com/compound-interest-calculator
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/compound-interest-calculator
Emberburn
Emberburn

@Carnalpleasure
Don't invest it, you will have to use that 3k for things like travel expenses, food, textbooks, extra curricular etc.

If you are set on investing, just dump like 2k in to a market wide fund or something and don't think of it ever again.

TalkBomber
TalkBomber

@Emberburn
Textbooks are paid for as well, but yeah I can see those other things. What is an example of a market wide fund? Like the S&P?

WebTool
WebTool

@Emberburn
this, keep it in savings, you never know when you might need it. 3k is nothing

JunkTop
JunkTop

@TalkBomber
Okay, well. I had a very similar case to you when I started uni. Textbooks, tuition etc paid for cuz wealthy parents.

I had 3k saved up, half of that was in some shares and what not, but, the other 1.5k i've used some of it for emergency travel funds and other things. It's good to just have a k or 2 on your card in case of shit like this.

Also extra curricular stuff can be expensive. I'm in engineering and I've bought some extra programming languages so I can expand my portfolio, if you are in any STEM degree you might want to do this as well.

Vanguard 500 Index Fund Investor Class

Here is an example, plenty of more funds. I don't know shit about funds I invest for a hobby ( I like picking individual stocks)

viagrandad
viagrandad

@Carnalpleasure
Colorado is a beautiful place.

Don't drink too much weed....

iluvmen
iluvmen

@Carnalpleasure
Use that 3.2K to travel via airbnb and such. I'm serious. It's not enough money to do anything else that will be worth it.

Poker_Star
Poker_Star

@Carnalpleasure
@WebTool
Kid, if you've ONLY got 3 grand, hang on to it. Holy fuckin shit, my brother got his right arm ripped off at the elbow and I had to bail him out with medical bills about 3 years ago and 3 grand wouldn't even touch that shit.

I've got about 350K in the market now, 50K liquid, assets at eh....... I dunno 700K (house, cars/trucks, boat [work], gear, etc.), you always have to have cash on hand for some happening.

Techpill
Techpill

@Carnalpleasure
@JunkTop
Not OP but I have 10k in savings and 1.5 in an IRA not really sure how to invest the majority of it and financial mangers wont touch me until i have 50k

Methnerd
Methnerd

>>1372166
Granted you are expense free cuz parents pay for shit.
Say you chuck 7k in to a fund, you make 10% from dividends+growth. You have 700 bucks added in to your fund. Account for inflation at say 2.5% you have $450 added on to your fund at the end of the year.

If you keep chucking your dividends+spare cash in to that fund+ compound interest that could quickly grow to a really sizeable amount of money. Start working on a retirement fund. Idk if you guys in america have superannuation where your employer dumps in x% from your salary, but, if you don't I would look in to either making your own superannuation or saving up for a house or something.

Sharpcharm
Sharpcharm

@Methnerd
kk yah i want a house pretty bad and some land im not looking to get filthy rich

Skullbone
Skullbone

@Sharpcharm
If you're just starting out here's the most meme response out there

read

Start reading about fundamentals
accounting
stock markets
sectors
risk analysis/management

etc. once you have that shit down, start choosing your own investments

until then, invest in Vanguard, very low fee (ER), no loading gayness, and well managed. 3K minimum though.

Emberburn
Emberburn

@Sharpcharm
Then I recommend having an emergency fund, you have to determine that size and then have your future house money in a fund that isn't in cash. You're right, finance people won't touch you because you aren't worth their time. How the fuck are they going to make money off of you.

I'm an intern at finance place and they don't deal even with medium income people, idk if it's because they don't come looking for how to penny pinch or it's because they decline them.

What's your income, how much of your income are you willing to put aside every year, what's the amount of money you need to buy your house (at it's current price) what's the average growth/inflation rate of house prices in your area and I can tell you how long it will take you

WebTool
WebTool

@Skullbone
@Emberburn
agreed i want to get into finance but im trying to be realistic. like i took an accelerated accouting class i just finished a week ago with a 75 i dont think im cut out for it desu. I was doing music and electrical engineering but my ears started to fuck up on me so im having to do business just to get a bachelors. I just want a cheap house and enough money to just fuck off from everyone full NEET mode and shoot guns and live on a farm

StonedTime
StonedTime

@WebTool
I take it you don't want me to make a projection of your house-purchase savings then

@WebTool
You will be retrained/taught new stuff when you get hired btw. Workforce is very different from uni

BinaryMan
BinaryMan

@StonedTime
income: currently unemployed but was making around 17k per year, wouldve been 30k fulltime but job was hell

I could put aside nearly all, living at home rn, $250-60 in bills per month ish

I see some houses/foreclosures go for about 60k but they need remodeling but im ok with that if theres land involved

Illusionz
Illusionz

@BinaryMan
Okay, I'm going to make some assumptions.
Here are the asumptions, your area has a price growth of 8% annually, you want to buy a home at 60k. So

You can use this, just make monthly deposits 0 and make the growth whatever you expect it to be and whatever current house price you are aiming for.

http://www.helpfulcalculators.com/compound-interest-calculator

https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/compound-interest-calculator

I then used this one to project your funds worth.
I did, you could chuck in 8k atm as your initial deposit. You can make a regular deposit of $1000 every month. Your fund or whatever you put your money in I assumed would get you about 6.7% annually when you minus the fees and what not ( I typed in 6.5% because 6.5% compounded monthly will come out as 6.7%)

tldr; After 6 years of $1000 monthly deposits with an initial deposit of 8k, you will have 100k at 6 years and that will match the 60k, now 97k house that you want to buy in 6 years time.
I used these websites so you can muck around on them.

http://www.helpfulcalculators.com/compound-interest-calculator
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/compound-interest-calculator

Raving_Cute
Raving_Cute

@Illusionz
I did 17k a year with 5k in expenses leaving you 12k for 1k monthly deposits.

Booteefool
Booteefool

@Illusionz
@Raving_Cute
I typed in 6.5% because 6.5% compounded monthly will come out as 6.7%
this is why i dont understand accounting i dont think im going to make it in finance. I managed to save up 15k by being frugal and not being an idiot but i dont understand the intricateness of it and the details of finance. i appreciate it though. its a tad ridiculous it will take 6 years

Evil_kitten
Evil_kitten

@Booteefool
Well, that's if you are doing part time. If you did full time you could probs do it in 3 and idk how fast your house price growth is in your area.

I will explain why it's 6.7%, also, you can just click the growth rate and then typ e in 6.7%, but, I didn't realise that.

If your fund is growing at 12%, compounded annually and your fund is worth $100. Your fund will be worth $112 at the end of one year.

If it's compounded monthly, At the end of one month your fund will grow by 1% (12%/12) or by $1.

So now that $101 gets compounded in the 2nd month giving you a number just larger than $102 etc until you end up at 12 months at $112.68

You can use the EAR formula to convert monthly compounding interest in to year.

viagrandad
viagrandad

@Evil_kitten
ah ok i see

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