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What savings method is best for me?

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Tracyman0111
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What savings method is best for me?  Reply with quote  

I have recently come into some money from an inheritance. I'm 29 years old with terrible credit and no savings, so; among paying down the great majority of my debt and taking some proactive steps toward credit repair, I would like to take maybe $400-500 of this money and put it into some kind of savings vehicle. As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will. Also, I would like it to be something that I can take money from relatively easily as well, in case a worst case scenario came up. I don't know much about bonds, or IRAs, or savings accounts in terms of interest-earning differences, pros and cons, etc. Just trying to do the right thing with my inheritance and begin thinking about my future, even if it's 5 or 6 years late!!!

Thanks Everyone. Razz
Post Fri Jan 10, 2014 1:41 am
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Wino
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Re: What savings method is best for me?  Reply with quote  

quote:
Originally posted by Tracyman0111
I have recently come into some money from an inheritance. I'm 29 years old with terrible credit and no savings, so; among paying down the great majority of my debt and taking some proactive steps toward credit repair, I would like to take maybe $400-500 of this money and put it into some kind of savings vehicle. As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will. Also, I would like it to be something that I can take money from relatively easily as well, in case a worst case scenario came up. I don't know much about bonds, or IRAs, or savings accounts in terms of interest-earning differences, pros and cons, etc. Just trying to do the right thing with my inheritance and begin thinking about my future, even if it's 5 or 6 years late!


https://personal.vanguard.com/us/MyHome

That's one of the easiest to set up. Just go to that link and set up an account. You'll need at least about $3000 to start an account, but they have funds that are in the $1000 range. If you put over $10000 into a fund, you can get admiralty shares that have very, very low expense fees. I would suggest VFINX (The S&P500 index; 0.20 fee; the admiralty equivalent VFIAX has 0.05% fee).

Another fund might be VTSMX (VTSAX), which is the total market index fund. There is also VDAIX (dividend appreciation index; VDADX ). Its admiralty shares are also at 0.05% EF. The main thing with any of these is to put your money there, and leave it until you are at least 59.5. You should also look in to Roth IRA (just google it) as well as any employer retirement plans you might be eligible for.

Whatever you do, don't go on a spending spree. This money should be invested somewhere, not merely spent. Even at only 8%, which is the figure I use in my calculations, you will have 5X your investment in only 20 years, and at age 59.5, you would have 11X your investment. I use 8% as I should be able to expect 10%+ on my annual returns, and there will be at least 2% inflation. Basically, 8% gives me a better idea of what the money will be WORTH in today's dollars when I retire.
Post Fri Jan 10, 2014 3:20 am
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oldguy
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quote:
As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will.


I agree with wino, open an account at Vanguard & invest in the SP500 Index (VFINX). Over many years, it has had an average return of about 11%/yr. If you have your $50/wk invested, in 20 years it would be $185,000 and in 30 years (age 60) it would be $575,000. So you might wantto do more - ie, put away about $100/week so that you have over a million when you are 60.

Wealth-building takes discipline - you can't be successful if you continually interrupt the power of compounding by skipping a week ("just this once I'll skip my $50 and buy new tires instead") - if you start that it will never happen.

Here's a site for the SP500 Index, you can pick out 30-year-blocks of time and check the returns. For the most recent 30 yrs, ending 10/2013, the return was 10.71%/yr.

http://politicalcalculations.blogspot.com/2006/12/sp-500-at-your-fingertips.html
Post Fri Jan 10, 2014 2:38 pm
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Tracyman0111
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I greatly appreciate you guys' input, but, although I hate to say it, I think that you are talking about things that I really don't understand. I wish there were some kind of seminar or workshop or something that I could attend, some kind of crash course in saving/investing. Until this point in my life, I really haven't put any importance on it. I'd like to change that now, but the knowledge just isn't there.
Post Sat Jan 11, 2014 2:31 am
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coaster
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quote:
Originally posted by Tracyman0111
I wish there were some kind of seminar or workshop or something that I could attend, some kind of crash course in saving/investing. Until this point in my life, I really haven't put any importance on it. I'd like to change that now, but the knowledge just isn't there.

Hey, everybody starts at the same point, and you already have the advantage of realizing you're at that point; some folks never do. There's really no crash course ... investing is a lifetime activity. Don't be in a big rush to attempt to do things you don't understand yet. Do just as much as your knowledge and experience makes you comfortable you understand what you're doing. There are a multitude of beginner's investment books available online and at your local library. You can start there, and ease in slowly. Smile

~Tim~
Post Sat Jan 11, 2014 6:13 am
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Wino
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If you go to the link I posted, they have informational articles that should help you, as well. Don't do anything that YOU aren't comfortable with and understand fully.
Post Sat Jan 11, 2014 8:34 am
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mabellemurphy
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Re: What savings method is best for me?  Reply with quote  

quote:
Originally posted by Tracyman0111
I have recently come into some money from an inheritance. I'm 29 years old with terrible credit and no savings, so; among paying down the great majority of my debt and taking some proactive steps toward credit repair, I would like to take maybe $400-500 of this money and put it into some kind of savings vehicle. As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will. Also, I would like it to be something that I can take money from relatively easily as well, in case a worst case scenario came up. I don't know much about bonds, or IRAs, or savings accounts in terms of interest-earning differences, pros and cons, etc. Just trying to do the right thing with my inheritance and begin thinking about my future, even if it's 5 or 6 years late!!!

Thanks Everyone. Razz



Have you ever talk to financial advisor?
Post Mon May 26, 2014 12:41 am
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JamesMartin
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Re: What savings method is best for me?  Reply with quote  

There are some saving methods through you can save money.

1. Set you savings goal
2. Establish some time frame for completion of you goal. For example 52 weeks.
3.Figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals
4. Record your expenses
5. Make an budget
6. Stop using credit cards

Weekly
quote:
Originally posted by Tracyman0111
I have recently come into some money from an inheritance. I'm 29 years old with terrible credit and no savings, so; among paying down the great majority of my debt and taking some proactive steps toward credit repair, I would like to take maybe $400-500 of this money and put it into some kind of savings vehicle. As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will. Also, I would like it to be something that I can take money from relatively easily as well, in case a worst case scenario came up. I don't know much about bonds, or IRAs, or savings accounts in terms of interest-earning differences, pros and cons, etc. Just trying to do the right thing with my inheritance and begin thinking about my future, even if it's 5 or 6 years late!!!

Thanks Everyone. Razz
Post Thu Jun 26, 2014 1:24 am
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JonCartoon
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Re: What savings method is best for me?  Reply with quote  

quote:
Originally posted by Tracyman0111
I have recently come into some money from an inheritance. I'm 29 years old with terrible credit and no savings, so; among paying down the great majority of my debt and taking some proactive steps toward credit repair, I would like to take maybe $400-500 of this money and put it into some kind of savings vehicle. As of now, I think I may be able to stick $40-50 a week in whatever this thing is, but it needs to be something I can deposit into relatively easily and on my own free will. Also, I would like it to be something that I can take money from relatively easily as well, in case a worst case scenario came up. I don't know much about bonds, or IRAs, or savings accounts in terms of interest-earning differences, pros and cons, etc. Just trying to do the right thing with my inheritance and begin thinking about my future, even if it's 5 or 6 years late!!!

Thanks Everyone. Razz


I think money must work.
and you can Invest in some business.
you only must choose some new, and progressive, and thats receive you money
Post Thu Jun 26, 2014 6:51 pm
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prioritytaxgroup
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The savings market is flooded with many different types of account, which can make it difficult to decide which deal is best for you. Saving in an instant access account makes sense if you think you might need to withdraw some of the cash you've put aside. ‘Emergency savings’ should be kept in an easy access account so you won’t struggle to get at them in a crisis.
Post Mon Sep 22, 2014 4:26 am
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