What to do with my first pay check?

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I will be receiving my first paycheck in a couple of weeks, I'm 19 years old and unlike most of my peers my age I would like to save and invest this money. I plan to move to another state and out my mom's house in July, so it would be nice to have a little more money. What Do you guys think I should do with my first paycheck and future ones. I most definitely will be living with roomates or finding a room share. I work at WalMart and the plan is to transfer to my job up there.

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I'm all for the H&B jokes, but to give it as actual advice means you should probably stop giving advice.

BradisBrad (Apr. 10, 2013 @ 7:22p) |

He works at WalMart. There is no way a paycheck will buy all of that!

toenailsmasher (Apr. 10, 2013 @ 10:47p) |

Wait . You mean this was supposed to be a joke all this time ?

And my last twenty years shouldn't have been spent on H&... (more)

SUCKISSTAPLES (Apr. 11, 2013 @ 1:24a) |

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So blowing it all on booze, weed and hookers is out?

atikovi said:   So blowing it all on booze, weed and hookers is out?
I used a lot of my paychecks, when I was 19, for that sort of thing. I saw it as an "investment" into my future. Use your imagination.

Deposit it in a bank. Unless you live in Cyprus.

buy new socks

buy a box of checks. Then you will be rich

silenze said:   buy a box of checks. Then you will be rich

Better yet, apply for a credit card using your new found income (annualized) and then you'll be rich!

Congratulations on what sounds like good planning, so will avoid the temptation to suggest that you send it one other particular FW member.

The items you mention -- moving, new state -- are important ones, as would be your near term income vs. planned expenses. You can't "invest" money that you'll need as your short term reserve.

You might consider looking at this http://money.cnn.com/magazines/moneymag/money101/ or a Suze Orman book(s) which is probably available in your library. When you're ready there will be plenty more in depth stuff to read. General advice is of limited value, it should be to specific to your carefully thought out and considered needs and goals. Good luck.

I'd say save as much as possible, for your move to another state/by yourself, and then reevaluate.

tarheels123 said:   I plan to move to another state and out my mom's house in July, so it would be nice to have a little more money.
So does this mean the new job is only temporary?

1) Pay off any outstanding credit cards or debt that has interest higher than 6%.
2) If you're company offers retirement, I'd suggest 10% into a 401k/ira. The value of putting away money early and it compounding is huge.
3) Start saving up an emergency account. I typically say enough money to where you could cover your expenses for 6-9 months if you were unemployed.
4) After completing first 3 steps, you have a lot more flexibility investing wise. When young I'd advise stocks, if you're unfamiliar with market. Do some research and talk to an Financial adviser/CFP and go from there. Be sure to do your HW on the fees they may charge, etc.

Sorry, but you're not ready for that yet. Your only financial goal is to move out in July. We need to understand much more first.

What's your job doing? Is it something you'd want to work at permanently? Are you planning to go to college? If so, will you be working PT or Ft meanwhile?

To move out, you'll need to fork over the first month's rent plus a security deposit that typically is another month's rent. And you'll need to make enough to cover utilities and food as well. Plus insurance, gas, and car maintenance if you own a car. Try to project what those expenses will be. Will you be renting solo or have a roommate? How much is rent where you live, and how much do you make?

NC ??

Take a picture of it and frame it.
Then take a look at the Hot Deals forum and get the maximum value out of it. Especially the FAR items.

take your family out for a nice dinner.

Starting to save early is the best thing you can do. Assuming 6% interest, if from age 20-30 (11 years) you invest $10k/yr for retirement, then blow all your income partying every year from age 31-65, you actually end up with more money at retirement than if you blow all your income partying from 20-30, then invest $10k/yr from ages 31-65 (35 years). $1.15 million vs. $1.11 million.

Early saving becomes less favorable with lower interest rates, but likewise it becomes more favorable with higher interest rates.

Open a Roth IRA at Fidelity/Vanguard/Schwab etc.

Choose an indexed fund and let it ride for 40 years.

For the time being, work hard and party harder right!

yep that will be the last supper before I leave.

Yep, what gave me away, my post on citydata or username?

Oh I'm ready whether I like it or not, if I don't take a risk and make this move now it will just be wasted time. I've been planning since last June. It may sound stupid but I've gotta do this. I work at WalMart, I will be attending Harold Washington City college, I work 4 days a week for 9 hours and getting paid $7.65. Transferring is an option so I will have a job before already in place.

tarheels123 said:   Yep, what gave me away, my post on citydata or username?

Tar Heel (or Tarheel) is a nickname applied to the state and inhabitants of North Carolina as well as the nickname of the University of North Carolina athletic teams, students, alumni, and fans.


Temporary at that store, I'm going to transfer.

I know...... born and bred Chapel Hll native

horizon6 said:   tarheels123 said:   Yep, what gave me away, my post on citydata or username?

Tar Heel (or Tarheel) is a nickname applied to the state and inhabitants of North Carolina as well as the nickname of the University of North Carolina athletic teams, students, alumni, and fans.



But now we know where to see his other post

kwisin72 said:   take your family out for a nice dinner.

this. you sound like a smart person being on fwf and plan to move ahead. you willhave checks until you stop working. thank your parents and take them out.

obligatory h&b comment

HKSturboKid said:   Take a picture of it and deposit it, then frame it.
Then take a look at the Hot Deals forum and get the maximum value out of it. Especially the FAR items.


I wish they had mobile deposit when I earned my first paycheck.

tarheels123 said:   I will be receiving my first paycheck in a couple of weeks, I'm 19 years old and unlike most of my peers my age I would like to save and invest this money. I plan to move to another state and out my mom's house in July, so it would be nice to have a little more money. What Do you guys think I should do with my first paycheck and future ones. I most definitely will be living with roomates or finding a room share. I work at WalMart and the plan is to transfer to my job up there.

When I was 19, I was poor and in college. However my buddies convinced me to take a trip to California for Magic Mountain, Huntington Beach etc. Had the best time of my life and it was all worth it. Consider doing something special while you're young OP.

Use it to pay tuition.

I would add - donate 5-10% to a worthy cause. You are starting out in your next phase of life, it is good to share (whatever you are comfortable at) with the less fortunate. I am a firm believer in paying it forward. Also, put some away in a rainy day fund.

Are you planning on going to college? I would be someone hesitant to invest in the stock market right now, the economy isn't doing great and the stock market is way up, there is a large disconnect there. Also when everyone else is fat is the time to be lean. Just my 2 cents. When you do invest just buy a S&P 500 spider.

1. take 15% and put it into S&P 500 mutual fund.
2. Horde the cash in a rate savings or rewards checking.

good luck. thinking about what to do with your money instead of just blowing it means you're well on your way

nm

Take your gf out and have a crazy night!! unless you don't have one, start working on it. don't listen to these old geezers.

If you decide to spend it, make sure you use credit for the purchase. Then use the money to pay back the credit.

Bring family for nice dinner, this will get paid when you do t have anymore spare time later especially you will move out.
Ask WalMart for relocated if they allowed you to move, that's company responsibility.

Drink and party. Its where most of my paychecks went through college and I've been financially stable ever since.

tajar96 said:   I would add - donate 5-10% to a worthy cause. You are starting out in your next phase of life, it is good to share (whatever you are comfortable at) with the less fortunate. I am a firm believer in paying it forward. Also, put some away in a rainy day fund.

Someone only making 275 does not make enough to donate to anyone, since they themselves aren't that fortunate.

It's best just to open a bank account and let it sit there. I don't know what is wrong with a lot of 19 year old people, but I never had the urge to spend a lot. Although, I am not a social person so don't have a bunch of people nagging me about something that will be so fun. Just don't give into peer pressure about buying anything and don't spend more than you can afford. It's a good rule that if you cant buy something three or four times, you can't afford it.

Skipping 26 Messages...
BradisBrad said:   Sammich said:   So blowing it all on booze, weed and hookers is out?

Haha nice you beat me too it! Seriously at 19 I wish I wouldve taken my first check and blew it all on coke and whores. That is probably the only time in your life its morally defensible. At my age it'd be tough explain to the wife where the syphilis and bloody nose came from.

My point being do it now while your young because your window for being stupid is closing quickly. Besides you have the next 50 or 60 years to save and only about ten more years of your prime left. Do the math and enjoy your youth. You have half a century to make up for it ahead of you after all the fun is over.


I'm all for the H&B jokes, but to give it as actual advice means you should probably stop giving advice.

Wait . You mean this was supposed to be a joke all this time ?

And my last twenty years shouldn't have been spent on H&B in various countries ?

Uh oh .



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