If you were me.. what would you do?

Im going to be graduating school in about 5 months, and ill finally be making money.

Im taking Jakes advice (from a post long long long ago) about saving 50K, then buying house(buy must be a great great deal), staying in for a year, then selling. blah blah blah… not the point of this topic.

But anyway… the question I have is this…

While im saving, (about a year or so, reall hardcore saving) what should I put my money into?) Inflation could be coming… how should I be smart with my money.

  1. Should I just keep it cash and put it in my closet? (Probably not… lol)
  2. Put it in a bank? (Interest rates so low, its pointless)
  3. Stock Market boring utility stocks (something I wont lose my arse on)
  4. Silver/Gold?
  5. Other options???

Im just wondering on what you people would be doing out there if you were in my sitution? Im going to be saving, and ide like to use that money is a smartest way possible until Im ready to use it for investing. After I get out of school im going to really be doing some hardcore learning to figure out my next plan is, but first… gotta save. Its really important that I dont get to risky, because I would kill myself If i SAVED and lost it all because I was overly aggressive. There will be times for being more aggressive after I have actually accomplished myself more.

Sorry for the long rant, any ideas?

two chicks at the same time…
(shameless Office Space quote)

Anyhow -
Here’s something to consider about gold/silver right now: How many commercials are you seeing on TV about buying gold. There’s probably also been some convention in your area at a local hotel about people there buying gold from the public. In all other cases when EVERYONE is doing something, it’s a bubble. Normally buying gold in an economic downturn should work out well, but I’d be careful when everyone is doing it and you’re seeing commercials everywhere for it.

I’m not an economist or finance guy by trade, so I’m sure you’ll get better advice from some others on here but if I were in your situation I would look for the safest possible alternative that gives you the best rate. You’re not going to make a ton off the interest, but at least you’ll protect what you’re working so hard to accumulate. You could do some searches and see which banks are paying the best rates for savings accts or CDs (depending on how long you can do without access to the money).

Good luck and remember to set reasonable/achievable goals so you have the satisfaction of reaching milestones along the way.

All of your listed investment ideas except the one that fdjake provided are not too good…Here is my opinion…My mother and sister are both RN’s…My sister is presently going to become a License Nurse Practioner or something like that…I may have it wrong but its close…She has been an RN for years now…My mother is an OR/RN nurse…My sister speciality is pediatric ER RN…This LNP or something like that opens her options up to a higher salary and private nursing options from what I understand…After all Im just Wall st (devil as Mike says)…My point is why dont you compound your interest on your money and re-invest in your education and get this LNP status at the youngest possible age giving you many more years of high salary possiblities…You are what?..Like 18-20 years old?..If you can make $100k a year vs $50k a year you can save alot more faster…I know you are probably going to say you are sick of school etc but from what I understand from speaking to my sister the education to become a medical attorney is not much more…So you have plenty of options if you choose later in life to go a different route…

Now talking about investment options…

Putting your money in a money market account and or CD’s is useless and you wont make squat…
You are young and have time on your side…I would recommend investing a LITTLE each month until you are fully invested in a AGGRESSIVE GROWTH FUND…Example…If you had 50k saved I would advise you invest $2500 each month until you have the 50k invested fully…You are young,you need to assume a certain amount of risk because you have time on your side…Stay away from commodities such gold and or oil etc…Too volatile and unpredictable…Keeping your money in cash is the worst move you can make…Stuffing it in your mattress is stupid …Plain and simple…The risk is zero but the chance to make money is zero and considering inflation you will deteriorate your savings by %3 or more a year…My advice is we are in a HORRIBLE economy for the time being and you should take advantage of your age and the economy and continue your education right through this downturn…By the time you are finished with your schooling the economy will probably be better than it is today and you will have alot more options to consider…

Hoosier. Assuming you pass your boards. I suggest you work as an LPN (that’s what you’re currently in i believe) for about 6 months. See if its something you like… You won’t know until you’ve done it for a while. You may like it enough to go for your RN. You’ll make a lot more money and have more options open to you. My wife is an RN and I work as a Respiratory therapist. I’ve worked with plenty of RN’s and LPN’s. There are pros and cons. But the ability to work nights and weekends opens up a lot of options for you during the day. You can invest in educating yourself in various asset classes like RE, stocks, bonds etc… At the same time, use that 18 year old energy and the fact that you’re living at home to your advantage. Stockpile as much money as you can and build on your education. I know an LPN who makes 80-90K/year but he works 80 hrs/week. I think its more important to learn how make money work for YOU instead of the other way around. You have plenty of time on your side.

Yeah im planning on going on for RN slowly, while working as a LPN so I can save/invest. The pay increase for LPN to RN is pretty nice. Going from LPN to RN isnt that bad I hear (not as bad as going from NOTHING to LPN)

But what im trying to figure out is what should I do with my money while im saving.

How long are you willing to have it tied up? Honestly, I don’t see a problem with just stuffing it in a savings account intitially. Remember, you want to have at least 6 months of reserves in cash. As an LPN, I’m guessing that you can make about $18/hr. to start. Work as many hours as you can and keep stuffing the money away… You should be giving you parents money each week. But outside of that, you should be able to sock away more than $50K in 1 year. Work your butt off. Perhaps you can pocket $80K if you work enough. I would want my money to be a liquid as possible. Stay out of debt and don’t blow you money anything that doesn’t help you make more money. I think you’ll need the knowledge to actively direct your money to various assets. You’ll need to build that knowledge over time. You also need to decide what interests you. You might like REI over stocks or vice versa. Concentrate on building cash and knowledge over the next year or so.

If you know that you want the cash in a year, I suggest that you play it super safe. That is a short term CD or a money market account from your local bank. Both are FDIC protected.

You will lose some interest. Not that much interest because you aren’t depositing $50,000 right off the bat; you are building it up. The loss of interest over 1 year would be nothing compared to the loss you could take on an investment.

My preference would be the money market. You can get them tied into a checking account, so if you see a real deal in real estate, you can grab it up. With the CD, you have to wait for maturity.

If you planned to wait longer before you needed the cash, I’d recomend something else. But with a 1 year deadline for money you can’t afford to lose, play it safe.

Not that it matters but I just spoke to my sister and she is going to school to be a FNP Family Nurse Practioner…I was mistaken when I posted Licensed Nurse Practioner…What do i know about this stuff…Im just a low life Wall street devil… :evil

And money markets and cd’s are HORRIBLE for someone his age…But what do I know…and equities are LIQUID…In the event Hoosier needs the money all he has to do is sell.

Phlemboy I do question your math…If Hoosier makes $18 and hour x 40 hour work week=$720 gross x 52 weeks is $37,440…After taxes thats about $24,300 or so…Where do you get he will have $50,000 saved in one year?..Just curious…And I needed a calculator because my math isnt great…

Rookie. I was talking about Hoosier using that 18 year old energy and work as many hours as possible. He might not like working 60 - 80 hrs./week but if he’s living at home with essentially no bills, he should be able to come close… I admit I didn’t use a calculator myself. It was more of a rough estimate based on working his butt off. After having a second look at it, perhaps $30K after taxes would be a more logical number… Regardless, now is the time for Hoosier to work on his investing education, cash reserves and risk capital. He fiancial obligations will never be this low! Take advantage of it Hoosier!

I will use that “18 year old energy” Phlem. Its actually “19 year old energy” now, just had a birthday. lol. Ill probably work somewhere around 48 hours and make about 45K BEFORE taxes.

Thank you guys for all your help. I appreciate it.

Are you still thinking of coming to Texas? If not, you should. The medical industry is HUGE here and land is cheap. You can start buying rentals immediately once you have a job.

Absolutley still thinking about Texas Chris(read the sig). If I did it would be Dallas area (thats the only area ive been to really, and I liked it). I hear the cost of living is great, and ive heard nurses wages are pretty respectable. No state income tax sounds great. Booming market too.

You watch everybody else in the USA and you hear them say “Maybe we should just move to Texas.” There must be something to Texas for people to be saying that. Im a young guy, so it would be worth trying out. My mom and my sister both want to move too, and I know will follow me anywhere (So I wouldnt be moving alone, that would be scary lol). We want a hott area, this cold SUCKS.

Who knows Chris, maybe me and you will be buds in Dallas (thats where your from I believe?). Wouldnt that be a shocker after our arguements a while back. lol

Hoosier. How much are you making right now? Unless you get booted from your parent’s house, I don’t see your expenses going up that much. subtract your current net income from your future net income. You are in such a great position right now. Take advantage of it.

Making $0 a week right now, no job. In school. But yeah, my expenses are very low. Im going to start paying for my cell phone and… thats about all.

Don’t forget to pay your parents at least $50/wk. :biggrin. While you’re learning how to work for money. Learn how to make your money work YOU… Learn how invest in RE, stocks etc… Give yourself about 1-2 yrs. to learn with books, dvd’s, and hands on experience. By the time you’re 21 yrs. old, you should have a nice chunk of change and the knowledge to put it work…

Texas has so many great places. Houston, Austin, San Antonio,and Dallas. All four of those cities would be great for you and your family to relocate to.

The second worst thing that ever happens to a person is that they go to work. The worst thing is that they get paid for that work. From then on just like a mouse with a mouse trap when ever they want to get money the first thing they think about is working.

I don’t think there’s anything wrong with working for a living. Its just that your options are limited unless you’re making millions. Also, when the job goes away, so does the money. I hate to sound like a “Rich Dad Poor Dad” commercial but the school system does a decent job of teaching how to earn money; but not a good job of financial education. That has to fall on the parents to teach them. The problem there is that many people’s idea of financial advice is get a good job, stay out of debt, save and open a 401K. That’s not horrible advice but its not the way to financial independence. That’s my goal.

Here’s what you DON’T want to do…

Hoosier gets out of nursng school and lets’ say for the sake of this discussion he makes $50K/ year…He’s not going to be an RN right out of the shoot. So his income will be lower than nurses with higher levels of training…

So…$1000/week gross…

He MIGHT see $750 of that NET

So he’s LIVING on $3000/month

MINUS…$700 for rent…down to $2300

Utilities…Cable, electric, gas, fuel…$400/month

Now down to $1900

He’s a GUY…So he’s GONNA BLOW some money on the ladies…

I’ll go with $100/week for BEER, Movies, Dinner out, and other BS so call it $400/month

$1500/month left and he still needs a CAR!!! and INSURANCE…OUCH!!

$500/month because he’s NOT 25 yet and still in the risk pool.

So…MAYBE $1000/month to build his FORTUNE ON???

Let me tell ya…THAT AIN’T HAPPENING!!!

This is WHY it is SO VITAL that this kid takes ONE YEAR and lives like SCROOGE.

If he can devote just ONE YEAR out of his LIFE to REALLY SAVING… it can CHANGE HIS LIFE!!!

Here’s my advice…


Lay out a DETAILED PLAN to your MOM and DAD…SHOW them your WEEKLY SAVINGS GOALS…Tell them that in ONE YEAR you WILL have EXACTLY $30,000 in SAVINGS and THEN you’re MOVING OUT…While your there…CUT THE LAWN…Take out the trash, do your own LAUNDRY…wash the kitchen floors…SHOW THEM how much you APPRECIATE the FACT that THEY are helping you build your FUTURE!!!

You can EASILY live at home for a year on $500/month…that’s EXACTLY $6000 at the end of the YEAR. Remember you’re MAKING $36,000 NET/year…SO the $6k is expense money…The $30,000 is for your FUTURE INVESTMENTS…

After that one year…GET OUT…THANK YOUR PARENTS…Tell them that the year they just INVESTED IN YOU will pay them back MANY TIMES OVER…


We’re here for you kid…I’m glad to see you’ve managed to pry your head out of your @ss over the last few months…It’s up to YOU man…
It ain’t EASY but it IS COMPLETELY …GO-able!!

AS you get closer to that $30K mark I’ll be loading you up on FDJAKE Real Estate investing tips which you WILL FOLLOW to the LETTER!!!

Then when you make you’re first real SCORE…YOU CAN PAY ME a PERCENTAGE!!!

fdjake is right…Stay at home and live like a miser for as long as you can…From the time I was 20-27 I saved alot living as cheaply as humanly possible…Remember its not how much you make,its how much you keep…Also remember that you can never replicate your best earning years.This is why I call BS on anyone that claims contentment…You need alot of money to retire comfortably…Just scraping by is no way to live…And chasing tenants around when you are in your 60’s will give you a heart attack sooner…Unless you have triple net leases on prime commercial but if you do you either bought them decades ago or your cap rate is negative %10…Build your cash and invest aggressively…Forget cd’s and money market accounts…YOU WILL NEVER BE COMFORTABLE…Invest with some ball$ ,you are young…If I were you I would keep going to school and become an RN…Make the most out of your life and career…Keep on striving…You cant live off the fruits of love…And if I remember correctly you did say that you want to make money…The only way on a normal salary is to INVEST AGGRESSIVELY…You will never do that investing in CD’s and Money Market accounts…You have time on your side…Listen to me…By the time I was 25 I had 10 people working for me…It all depends on how bad you want it…I WANTED IT BAD… DO YOU?