Am I too stingy with my money.

**PhillipC** · 12-17-2007, 01:50 AM

Well, I'm 18 years old. I know little about money expect that I don't like to spend it. Currently I have $15,000 in a savings account, another 4-5k in stocks, and a 16,000 (ish) car to my name. Like I said, I'm 18, I still live with my parents, so my income from my minimum wage job goes almost directly into my savings account. I really hate spending money. I do help my parents out around the house, a lot, for 20$ a week, which I try to use as spending money. Yeah I know, 20$ a week is crazy, but I still have no bills. I pay for my car insurance, but I just payed my mom what we calculated it to be in the beginning of each year. That isn't important, I'm wondering if theres anything I should be doing with my money, and I'm also wondering if for a 18 year old $35,000 is a good start. I'm planning to live here with my parents for another year or two until I finish college, because I know if I go out on my own now, my grades will get pushed to the side. If you accompany that, my net worth should be around 45,000 and 20 years of age.

**Its_Donna** · 12-17-2007, 05:03 AM

My only suggestions are:

Continue to invest
Stay away from Credit Cards
Spend a little money once in a while; have some fun! You're 18!

Welcome to the Village

**Nantahala** · 12-17-2007, 06:29 AM

I agree with Donna above, you are young so take advantage of this time to make all the right decisions. Best of luck!

**Nada.Leona** · 12-17-2007, 09:17 AM

Wow, I WISH I had that kind of money at 18!!! You're on an awesome roll, congrats for being so smart at such a young age! Keep up with what you're doing, avoid credit cards like the plague, and read "[ame="http://www.amazon.ca/Rich-Thirty-Adults-Financial-Success/dp/1552637948/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1197900391&sr=8-1"]Rich By Thirty[/ame] by Lesley Scorgie to see what someone who is a lot llike you is doing with her money!

**PrairieRose** · 12-17-2007, 09:18 AM

I think it's a fantastic start! Just remember though that if you let yourself get too tight with your money you'll make people around you miserable (talking in the future here, a wife, kids, etc...). You have to work to find the balance and yes you should have some fun sometimes. Money is a tool, not just something to be collect. Great job so far on putting back a nice amount!

**McD** · 12-17-2007, 09:31 AM

You are off to a great start!

My advice to you is this:

Continue to Save!
Stay Away From Credit Cards!
Budget for some fun money/activities!

Also, you may look at different options for the 15K sitting in savings. Generally, savings accounts do not pay as good of interest. You may want to check out money markets, etc. which have a higher a.p.y.

**3hungryboys** · 12-17-2007, 10:04 AM

So this money is just sitting in the bank? Is it earmarked for anything, like tuition, etc or is that being covered by your parents? Do you own the car outright?

OK, assuming you have no debt, and no plans for this money, I would highly recommend opening a ROTH IRA. YOu can put $4000 per year into this (as long as you earn at least 4000/year), so I would open one up now, and put $4000 into it for 2007, and then in 2008, transfer over another $4000. If you can do this every year for the next 7 years AND YOU NEVER INVEST AGAIN, you will be a millionaire at retirement age. You are so young, you can really make your money work for you if you start now.

Did you know if you invest just $2000/year in your retirement from age 19 to age 26 and then STOP, you will still have more money than someone who started at age 26 and never stooped.

**frugalfarmwife** · 12-17-2007, 10:18 AM

WOW!! Can I adopt you?

I'd be PROUD to call you my kid!!

kj

**my4littlebuffaloes** · 12-17-2007, 01:59 PM

I would open a Roth IRA and use your current savings to fund it for 2007 and 2008. What a head start on retirement. Great job.

**shoiji** · 12-17-2007, 02:14 PM

It sounds as if you have a plan!! Yes, do set aside a little "mad money" You are young and should be experiencing some things. Oh say a vacation. Keep up the good work and keep helping your parents since they are helping you greatly right now.

**PhillipC** · 12-17-2007, 03:40 PM

Originally Posted by 3hungryboys

So this money is just sitting in the bank? Is it earmarked for anything, like tuition, etc or is that being covered by your parents? Do you own the car outright?

OK, assuming you have no debt, and no plans for this money, I would highly recommend opening a ROTH IRA. YOu can put $4000 per year into this (as long as you earn at least 4000/year), so I would open one up now, and put $4000 into it for 2007, and then in 2008, transfer over another $4000. If you can do this every year for the next 7 years AND YOU NEVER INVEST AGAIN, you will be a millionaire at retirement age. You are so young, you can really make your money work for you if you start now.

Did you know if you invest just $2000/year in your retirement from age 19 to age 26 and then STOP, you will still have more money than someone who started at age 26 and never stooped.

This is what I want to do. Only problem is I have absolutely no idea what a ROTH IRA is. But you are talking exactly my language. I want to invest my money for the future.

**McD** · 12-17-2007, 04:04 PM

Roth IRA is an individual retirement accounts.
You may want to go to your local library and check out some different financial books that can help explain different products, etc. to you.

toile · 12-17-2007, 04:11 PM

Stingy?NO!!!

Brilliant? YES!!!

Your doing exactly what Im teaching my kids to.
The 20's is the easiest and best time to save.
You have so many things working for you at that point in life.
Even Gene Simmons said instead of partying in your 20's, invest and work work work. He said a 20 year old can actually physically work 2 jobs and invest all the $$ It will pay for the days later in life for sure

**sdrjeolsen** · 12-17-2007, 04:59 PM

No, I don't think you are stingy at all. At 18 I had a nice sum of money saved up too...but then I got married and it all went to bills, rent, my husband's student laons, his auto laon, etc. I think you are wise to save it and invest it, some day you will probably want to get married and want to buy a house...neither of which are generally cheap. Be proud of your accomplishement, you are doing great!

**wulong32** · 12-17-2007, 06:16 PM

I would definitely look into a roth ira. I opened one when I was sixteen and Im really glad I did. The good thing about saving at our age is we have the power of compound interest on our side.

Do you have the option of contributing to a 401k? If so does your company have matching contributions? You might not be able to, I cant because my employer wont let me start one until Im 21. If you can, contribute at least what they will match.

When you graduate, will you have any student loans you will need to pay off? Are there any other large expenses you can foresee in the future?

I would live with your parents for as long as possible, longer than two years if you can get away with it. i would probably put at least $5000 aside into an emergency fund and start a roth ira and max it out.
I would also start saving for a house downpayment. I think $5000 is a good ef for you atm, so I would put everything else towards retirement and house d.p. savings, unless there is something else you can think of that you will need to save for in the next few years.