Help! I need help with my money

[Tye Laviolette]

I’m 19 years old, I still live with my parents where I fortunate enough to pay no rent. I don’t have any student debt, I have a good paying job where I make 18.55 an hour. As of now, I put 20% of my paycheck into a Roth account where my employer matches 5%. I have had a plan for a long time that my first big purchase would be a multi unit house or a duplex, ideally a 2-3 unit building where I could live in one, and rent out the other. I have no idea what I should be doing with my money right now, I get paid about $800 every two weeks if I don’t work any overtime. I put just about all of my money I earn into my savings account. I need help of finding a better place for it, is it that the best place? -What should I be doing with my money? -How much should I plan on putting as a down payment on a multi unit? 20%? 10%? As much as I can? -instead of putting 20% into my Roth, should I do 5% and do something else with the 15%? (That way I still get the 5% match)

[Shiloh Lundahl]

@Tye Laviolette It’s good to hear that you are taking money seriously at your age. I agree with what has been stated about gaining a financial education right now. I think the better question would be what should I be learning right now over where should I be investing right now. 

I would suggest that you follow the following steps:

1. Read the book, The Richest Man in Babylon. This is where the concept pay yourself first comes from. Follow the steps outlined in this book religiously.

2. Keep paying yourself the 5% into your Roth to get the match.

3. Save the rest in a regular savings account for when the opportunity arises to invest. It will be much easier to get to if it is in a savings account rather than in a Roth.

4. Put about $1000 into a 1-year CD secured loan where the interest rate on the loan is  the lowest rate. Then set up automatic payments from your checking account to pay on the loan on time monthly. This will help build your credit. 

5. Get a credit card and carry a small balance and pay on it regularly. This will cost some money but it will help you build credit as well which will save much more money in the long run. Be careful with this. A credit card is like a fire. It can be a great tool for good or it can burn you and consume you.

6. Do your very best at what ever work you do to gain more money but more importantly   to gain more skills and knowledge that will prepare you for your next opportunity.

7. Find a mentor and learn from him or her.

Good luck