WOOOOO! college, savings and money ??

Question

i want to have some money for when i get out of college [haha, i have awhile]

at least $250,000 so i can rent a nice apartment ...

i dont know a ton about investing / saving ...

i work as a shampoo girl right now at a hair salon

i make about $200 USD a month [roughly $2,400 yearly]

if i start a savings account, how much money do you think i can save up in about 3 or 4 years ?

and how does that work?

Answer 1

Your 200 dollars a month won't do squat probably. First off, you would have to not spend a dime of that 2,400 dollars a year. If your like most people, I doubt your stingy. Your talking about spending 250,000 dollars for an apartment. That's a sign you like to spend money.

Just saving 2,400 dollars a year will give you 9,600 dollars in four years. That doesn't even touch the amount you want. Now, you could invest that 2,400 dollars in a year in stocks, but let me tell you something about the stock market. Fast, big amounts of money equals a big risk to take. The chance would be high risk, and more then likely, especially if you don't know what your doing, you'll probably lose all your money or a majority of it. If you invest, invest for the long-term (20-40 yrs.).

Your best idea would be to find a full-time job or a couple part-time jobs over the summer and save as much money as you can for college. Even though you'll probably get money from loans for school, you might want to think about emergency money in your bank account. You'll come across alot of stuff in college that your loans won't touch (parking tickets, friends want to go to a concert, clubs, bars, etc.) If you want to get an apartment college, alot of times college loans won't cover apartment costs. Once again, that money comes to hand.

If you have any money in your savings account after college start putting it towards your loan. And as for your 250,000 dollar apartment, I'd hold off and worry about getting a job that will help support that type of living costs after college.

Answer 2

I would keep that job cause it doesnt sound like it will stress you out when dealing with school. Right now focus on your education.................great things will happen with time. Im 23 years old and wish I was your age and I would do things different. I have to work full time and go to school full time because I thought I knew everything at your age. (Im still single and dont have kids) but have to work cause I decided to be a MAN. I cant just go back to parents cause Im use to having my own money. Trust me keep your grades up and money will come to you............I have been in college for a year and a half trying to keep a 4.0 GPA to make up for my <2.0 GPA I had in High School..........and Im starting to turn heads from scholarships.

Answer 3

Keep in mind that if you have money, your college will expect you to use it and they will reduce whatever financial aid you get. And why in the world would you need 250,000 for an apartment? That seems really ridiculous to me. The way things are going, you should be saving for the future (I mean distant future) and trying to cut expenses where you can. Remember that social security probably won't exist when you retire.

Answer 4

Certainly not much.  You'll have expenses out of what you earn.  Better to find a job where you can make more and at least put half of it away.  To save $250,000 in 3 years is impossible the way you're going.

Answer 5

This is true, you do have a while to save, but it's never too early to start.  There are plenty of online brokerage accounts that you can set up (like Scottrade, e-mail me if you decide on them because we would both get 3 free trades), some for as little as $500.  You should also make sure that you set up some sort of high yield savings account.  I have one through Ing direct that I've connected to my checking account at wells fargo.

I linked a very good article below (sources) that talks about types of things that you can invest in and how you should think about investments.  It's very helpful.