FundRobot » Money Funds » I will have $15,000 at the age of 22 years old how should I invest/spend this money?

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Old   #1 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

This a scenario in the future:

I have a bachelor's in Financial Economics. I have a steady job with a salary between $20 - $30 an hour. Living in the Boston area, having no car or any other assets, what would be the wisest way to invest this money?



In a car? In a house? Stock?

My plan was to buy a $30,000-vehicle and use the $15k as a downpayment and finance the rest to build credit. But I have no idea if the is a good decision...
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Old   #2 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

Bad plan - $20 - $30 an hour is $40,000 to $60,00 a year - your plan is to spend half your annual earnings on a depreciable item (cars do not go up in price). Ar gar rate of pay, you should be looking at a $15,000 to $17,500 car. Using your savings for a down payment will leave you with no emergency fund. My question is - just out of college, how do you intend to save $15,000 in one year and still live. I would assume that you will be living with your parents, otherwise a lot of those earnings will be going towards living expenses.
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Old   #3 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

You can try stocks, but you have to do some learning. Since you are financial economist, it should not be a problem for you, you should be familiar with numbers.
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Old   #4 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

Buy a 10k car for cash, if you need a car. Will save a ton on insurance.

Roth or conventional IRA maxed out. Invested in Blue Chips (XOM, PG, JNJ) or ETF's (DIA, SPY, DVY)

Building credit is easy enough. Small loans repaid promptly. Doesn't have to be a car payment. Department stores and jewelry stores are always looking for new charge customers.
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Old   #5 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

rent an apartment
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Old   #6 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

Open a Roth IRA and fully fund it for three years.
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Old   #7 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

I would put 8K into untouchable savings to begin with. Thats a safety net and money in case you move or change jobs etc. Try to make that 15K into 45K by saving up more.
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Old   #8 (permalink)
 
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Default i will have $15,000 at the age of 22 years old invest/spend this money

Buy a car only if you need it.

I'd keep the money as an emergency fund, about eight months' worth. Why eight? Because that's about how long it'll take an average worker to find a new job.
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