What to do with my cash.

Saving & investing, frugality & simple living. They're all part of the wealth equation.
Here's the place to discuss getting (and keeping!) your money.

Moderator: lvergon

rlogle
Posts: 2
Joined: Sun May 13, 2007 8:28 pm
Contact:

What to do with my cash.

Postby rlogle » Sun May 13, 2007 8:31 pm

I'm now to the point that I'm able to keep about $600 per month out of my money. I've been just putting it into my savings account at the credit union. There has got to be something better to do with this money. Any ideas? Thoughts?

consultantjournal
Posts: 752
Joined: Wed Apr 04, 2007 9:50 pm
Location: Vancouver, Canada
Contact:

Postby consultantjournal » Sun May 13, 2007 8:48 pm

1. Establish an emergency fund. 6 months of living expenses is good.
2. Pay off any debt, starting with the highest interest rate debt.
3. Start saving for retirement
4. Start saving for a downpayment on a home.
5. Start saving for your next vehicle, if applicable.

Have you completed any of those? That would help us tell you what to do next.
Andrea Coutu
Consultant Journal
www.consultantjournal.com

FinancialJungleGuy
Posts: 2
Joined: Sun May 13, 2007 11:45 pm
Contact:

Postby FinancialJungleGuy » Sun May 13, 2007 11:59 pm

That's a great list, by the way. If you need more ideas of where to put your money, check out this CNN article.

http://money.cnn.com/galleries/2007/mon ... index.html

rlogle
Posts: 2
Joined: Sun May 13, 2007 8:28 pm
Contact:

Postby rlogle » Mon May 14, 2007 5:55 am

The only debt I have is for a small, $5200 loan. My payments are $177 per month and I pay $350 per month. I know this is gonna freak most of ya out but, I didn't have anything saved up until now. I've always just spent anything extra. I know, at 38, I should have been saving all along. I was just thinking, I know what to save for just not sure where to put the money...... A lady I work with say's buy CD's, another say's buy stocks with it another say's put the money in gold (LOL). Thanks for the suggestions thus far.

User avatar
jdroth
Site Admin
Posts: 948
Joined: Thu Mar 29, 2007 4:58 pm
Location: Portland, Oregon
Contact:

Postby jdroth » Mon May 14, 2007 6:04 am

<i>I know this is gonna freak most of ya out but, I didn't have anything saved up until now.</i>

Doesn't freak <i>me</i> out. I'm in the same boat. I've only recently begun saving, both for retirement and for my emergency fund. I always used to spend whatever I had, too.

As for your question: Gold doesn't appeal to me as an investment right now. There's too much of the bandwagon in it. I don't know much about precious metals, but the whole thing feels like a bubble to me at the moment. CDs won't pay a huge return, but they're safe. It might be a good idea to put a couple thousand dollars there as your emergency savings. Then, take future savings and invest them for retirement in the stock market.

User avatar
JerichoHill
Site Admin
Posts: 1627
Joined: Wed Apr 04, 2007 7:46 pm
Location: Washington DC
Contact:

Postby JerichoHill » Mon May 14, 2007 7:06 am

Gold, like other commodities are fool's investments. Don't bother.

If you have an emergency fund, and feel sufficiently mobile in cash that you're not worried about unexpected expenses, but some index funds and forget about them. If you dont have an emergency fund, might I recommend a highyield savings account that pays just as good as a cd (about 5%)
C.R.E.A.M
Government Economist
CoffeeCents - PF lessons in 15 minutes
Czar of GRS Forums.

User avatar
plonkee
Posts: 458
Joined: Thu Apr 05, 2007 1:25 am
Location: England
Contact:

Postby plonkee » Mon May 14, 2007 9:06 am

I would suggest putting $400 per month into a high interest savings account and $200 per month into a retirement vehicle (401(K), Roth IRA, whatever) until you have 3-6 months expenses in the savings account. Then I'd switch it around so $200 went into savings and $400 into investments.

This assumes that you aren't already at the limits for saving for retirement.

If you were in the UK, I'd suggest putting the savings money into a cash ISA and the investment money into a stocks and shares ISA as they're more flexible and/or give better returns.
In mathematics you don't understand things. You just get used to them. John von Neumann

uk personal finance and religion and atheist


Return to “Personal Finance”

Who is online

Users browsing this forum: No registered users