First Job

[Mephisto]

Last month I got my first job and so far have received two paychecks totalling $700~.  Anyways, as I get more hours, more money, etc. I am wondering what I should do with this.  Should I open up a checking account and have it at my quick disposal or should I have a savings account?  I was thinking of finally creating a Paypal account and set up a Quicken account to keep my balances and such.  I don't know, I'm pretty new to all of this and any advice would be welcomed.  I don't want to necessarily use this money just to blow it, that's not why I got the job (but I do want money to buy the things I need on occasion and to go have some fun here and there).

[Yegg]

I would suggest saving your money, but while at the same time spending it on what you want or need, keeping in mind how much you will end up spending. Of course you don't want to go and buy something far too expensive and lose all the money you worked hard for.

I have to wait 3-4 months before I can get a job, soccer season starts and I can't work during it. :/

[CrAz3D]

Open a savings & a checking.  At our local banks you can generally get free a checking/debit card account.  I have a savings & a debit/checking account, I constantly use the checking for gas & other exoensive things.

$700 in 1 month!?  How much do you get paid, what are you doing, & where do you live?

[Hazard]

Checking is the way to go, IMO. Check out the bank that my dad works for, Branch Banking & Trust for all of your banking needs! 

[Tuberload]

A savings account should be automatically setup along with a checking account.

You have to ask yourself how many needs do you have that cost money? Try depositing half of your check into each of the accounts that way you have access to money when you need it, and a sum building that is in a way out of your eyes. In the end you're in control of whether you access the money or not, so if you can't control your spending it doesn't matter to much where you save.

[iago]

I've always had only a saving account.  It's worked so far!

And $175/week is decent for a first job.  I was making around $120/week for my first job, doing 3 shifts/week.  Now I work full time and gross about $550/week (40 hours @ $19.00/hour).  How much do you get psaid/hour and what kind of hours do you work?

[Tuberload]

I've always had only a saving account.  It's worked so far!

And $175/week is decent for a first job.  I was making around $120/week for my first job, doing 3 shifts/week.  Now I work full time and gross about $550/week (40 hours @ $19.00/hour).  How much do you get psaid/hour and what kind of hours do you work?

A checking account will give him access to a debit card. That way he will not have to carry cash around on him, and I think the benefits of that speak for themselves.

[hismajesty]

Open an eBusiness, find a wholesaler for some product, buy a small or medium order (should cost around $600 if they're, say, $12/unit). Double the price, sell on eBay, double your profit. Reinvest the original $600 or whatever you spent, and then repeat the process. Take your actual profit and either get a different type of product and expand or put it into the bank. Once you've accumulated a few thousand dollars start investing in mutual funds or stocks (have your parents open up a custodial account that will be handed to you when you're 21). Alot of discount e-Brokers require a $2000+ minimum account, though, so you can't do it right away. Then you might want to invest in mutual funds (The Vanguard Group has, from what I've heard, a very nice inexpensive one that is actually very good - an investment website I was reading was saying how you could turn $3,000 into $15,000 in no time.) Then, once you've acquired more capital, get into other business ventures - be it more online stuff, maybe real estate investment if you have enough money, and the stock market. Be sure to read though, 80-90% of intial investors fail. I refuse to start using real money until I finish reading a book that I'm reading now.

The whole secret to making money, is not to work for your money, but to let your money work for you. That's why the rich get richer, even after they retire, and how the poor get poorer (especially after they retire.) That's one of the main things taught in the book "Rich Dad, Poor Dad" (I personally haven't read it, but it's supposed to be very good.) You'll get a small amount of interest if you put it in the bank, if you want a no-risk deal, though.

I can pretty much assure you, buying a new game or CD or something like that really won't matter in a couple of years.

Curiousity: What is your job? Apparently my parents feel I need to learn "character" and keep saying I need to get a job or they won't do this, this and, this for me. All of them that were listed didn't suit me, or I was too young/undereducated for. One I liked and it was very easy, but it was too far away. That's why I started researching online businesses and stuff.

[Hazard]

My first job was a summer job working for my neighbor who owns a lawn care service. Made $8.50 an hour, usually between 8-10 hours a day (depending on the day of the week), 5 days a week. Made excellent money.

[iago]

I've always had only a saving account.  It's worked so far!

And $175/week is decent for a first job.  I was making around $120/week for my first job, doing 3 shifts/week.  Now I work full time and gross about $550/week (40 hours @ $19.00/hour).  How much do you get psaid/hour and what kind of hours do you work?

A checking account will give him access to a debit card. That way he will not have to carry cash around on him, and I think the benefits of that speak for themselves.

I use a debit card.  I guess accounts here (in Canada) work differently -- when I swipe my card, it asks "checking or saving"

[iago]

That's why the rich get richer, even after they retire, and how the poor get poorer (especially after they retire.) That's one of the main things taught in the book "Rich Dad, Poor Dad" (I personally haven't read it, but it's supposed to be very good.) You'll get a small amount of interest if you put it in the bank, if you want a no-risk deal, though.

And those of us in the middle class glide happily along. 

Apparently my parents feel I need to learn "character" and keep saying I need to get a job or they won't do this, this and, this for me. All of them that were listed didn't suit me, or I was too young/undereducated for. One I liked and it was very easy, but it was too far away. That's why I started researching online businesses and stuff.

Probably a good idea.  On these forums, at least, you come off as a "rich kid".  Having a tough job would be a good experience

[CrAz3D]

Wow, $8.50 an hour for yard work....wtf, it's like $5.50 if you're lucky here, crazy poor little town I live in...stuff is just as expensive here as it is there (except houses but I don't plan on buying one soon...until maybe next year)

I get $6.50 as a runner for a lawyer (& $20 a month for gas).  Simple job, I've learned quite a bit so far & am learning new things (not necessarily law related) everyday.  I plan to get an on campus job sometime (better pay, more hours, no driving around town [usually]).

I currently make about $500 a month...4 hours a day (mon-thurs) 2 hours (fri)

As far as investments go, I plan to put my money from my accident into a CD for a yr or so, then maybe take out a loan against it & buy a house near the university & rent out the rooms to people (I'd live there too just to make sure the place doesn't get trashed).

[hismajesty]

That's why the rich get richer, even after they retire, and how the poor get poorer (especially after they retire.) That's one of the main things taught in the book "Rich Dad, Poor Dad" (I personally haven't read it, but it's supposed to be very good.) You'll get a small amount of interest if you put it in the bank, if you want a no-risk deal, though.

And those of us in the middle class glide happily along.

Yes, indeed. That's one of my biggest problems with my mom, she's content being 'middle', 'average', simply 'mediocre' whereas I want to strive to improve.

Apparently my parents feel I need to learn "character" and keep saying I need to get a job or they won't do this, this and, this for me. All of them that were listed didn't suit me, or I was too young/undereducated for. One I liked and it was very easy, but it was too far away. That's why I started researching online businesses and stuff.

Probably a good idea. On these forums, at least, you come off as a "rich kid". Having a tough job would be a good experience

You fail to see the major difference between rich and sort-of-comfortable. We're not a paycheck away from dying, but after my dads ex-wife, insurance, taxes, etc. we're definitely not anywhere near rich (and I wish you'd stop saying we were..) We live in an average size house, drive normal cars, etc. We don't go to the Hamptons on the weekend, and don't have money to just throw away (we save it, ensuring later financial security.) Just because people in my family are rich (grandparents) doesn't mean that they give us thousands of dollars (though they send checks to my aunt all the time), it also doesn't mean that we are too. I just look at money a different way than you, I guess. Of course, you said you hated money or something like that, so that may be one of the reasons.

I get $25 for cutting my neighbors yard. She's my only customer though, I had two last year, but now I only have her.

[CrAz3D]

I got paid a clarinet ($300) for cutting my grandma's grass one summer (after she died)...my parents paid me.

[dxoigmn]

You fail to see the major difference between rich and sort-of-comfortable. We're not a paycheck away from dying, but after my dads ex-wife, insurance, taxes, etc. we're definitely not anywhere near rich (and I wish you'd stop saying we were..) We live in an average size house, drive normal cars, etc. We don't go to the Hamptons on the weekend, and don't have money to just throw away (we save it, ensuring later financial security.) Just because people in my family are rich (grandparents) doesn't mean that they give us thousands of dollars (though they send checks to my aunt all the time), it also doesn't mean that we are too. I just look at money a different way than you, I guess. Of course, you said you hated money or something like that, so that may be one of the reasons.

What you fail to see is that most people are not in your situation nor anywhere near your situation. Poor people pay for insurance too, they also pay taxes (I know it seems far fetched but yes it's true), some have to pay for child support among other basic necessities. Some don't own a house (nor will they never) but they do drive "normal cars" (whatever that means...). Most try to save their money too, but often can't because they must live paycheck to paycheck. Most of them will never visit the Hamptons. To many "sort of comfortable" is what I just described (at least in Los Angeles), and "rich" is what you are.

Just to show what situation the rich don't believe they're in, a quote: "Around 1980, when asked what level of personal income would qualify as middle-class, George H. W. Bush replied: $50,000. In fact, only 5 percent of the U.S. population was making that level of income at the time." [Source: Wikipedia].

Edit: eww @ double negative.