Satisfaction of saving versus beating down debt

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jeffysdad
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Postby jeffysdad » Fri Jul 27, 2012 1:44 pm

DH was too busy counting his money to remember to mention that his automatic investments also provide him with the benefits of dollar-cost averaging, which is something most financial planner types love to talk about.
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DoingHomework
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Postby DoingHomework » Fri Jul 27, 2012 1:51 pm

jeffysdad wrote:DH was too busy counting his money to remember to mention that his automatic investments also provide him with the benefits of dollar-cost averaging, which is something most financial planner types love to talk about.


That's true. But I really think the most important part is consistency!

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Snowman
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Postby Snowman » Fri Jul 27, 2012 2:56 pm

Homework, I've heard that Mutual funds have really low returns and that's why I'm kind of scared to buy into it. But I'd love to have more money saved up to use for various things. Currently I have 1,200 in my savings account, but I need more sources of income. I still live with my parents (I'm 19, I want to move out, but I cannot afford to move out on 8.00 an hr). How good are the returns on your investment and who do you invest with it. I want to be in a position one day where when I am able retire, I will never have to rely on social security (if it's still there) and I have a small nest egg. And how much is you automatic investment? Do some funds require a large first investment? anything that will let me save up for things and have more money in my pocket is good...
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DoingHomework
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Postby DoingHomework » Fri Jul 27, 2012 5:39 pm

Snowman, Vanguard or T. Rowe Price are good places to start investing. They have very low fees. T. Rowe Price I think will let you start with about $50 a month but you'd need to check on that. I started with about $200 a month over 20 years ago and save about 10 times that much now. At 19 you probably want most of your money in stock market index funds and can reasonably expect to earn about 6-7% per year on them over the long term. But you need to read and learn about investing first. You will have years where you lose 20% so you can't think of it as a short term thing. Any money you will need in 10 years or less should be in savings accounts or a money market account.

I'd encourage you to go join GetRichSlowly to ask about this kind of thing. It's another forum kind of like this.



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