but i make like $600 per month at this stupid job i have.I could buy a house where i live but it would be one for like 750 square feet.I live with my parents and i'm 29.I am getting like and average of 3.2% interest on my money at the bank.Iknow this sounds liek a stupid question. But really, what should I do?
As we have entered a deflationary period for the first time in over 50 years you are fine with earning interest from the bank. Your money's buying power is growing. However, inflation will probably happen sooner or later because the Fed is printing money to pay for all of the bailouts. When that happens, your 3.2% interest (which is not bad from a bank), will not keep up with the buying power of the money you have in the bank. You will start to fall behind. If real estate in your area is selling at 1992 prices and you don't see any major local employers suffering (i.e. layoffs are pending) then you may be okay with a real estate investment. However, can you pay the utility bills, insurance, and property taxes on your current income? Probably not, and if you could, you would not have any money left over for food or medical emergencies, etc. Create a full-year budget to see if you can really afford a place to live. If you want to earn more than 3.2% on your money then you clearly run the risk of losing some or all of your money. Investing in the stock market is a real gamble right now as it has been a roller coaster and is probably set for another fall soon. The economic news continues to be bad and we may not see a real recovery until the commercial real estate problems settle around 2012. (Residential problems made the news, but commercial has not even started defaulting as bad as it soon will.) What is your risk tolerance and how well do you or a trusted adviser really know the market(s) where you might invest? If you don't know any market in great detail, expect to lose a lot of money right now.
Where do you live? You could possibly move away from the city and get something bigger. Or wait until you finish school or what ever is limiting your income and then use that on a down payment for when you can afford larger payments.
I am a widow in Nigeria. If you could loan me $149,000.00 I can triple your money in three months Kidding, guy, kidding. There is more that I'd like to know. Have you completed college? I'm guessing that you haven't if you're only making $600 a month. (What exactly do you do that only pays $600 a month?) A college degree could be the single best investment that you could make. I'm 50 years old and, frankly, have managed my money reasonably well, to include preparing for retirement. I know so many people who haven't prepared for retirement. When they were young and had money they blew it. Now they're in their 40s and 50s and haven't saved a dime (and they blame everyone, to include the rich and the government, but themselves). What kind of retirement are you going to have making $600 a month? $149,000.00, frankly, isn't a lot of money; not enough to retire on. And do you ever intend to get married and have children? Its a cliche but it really is true that Today is the first day of the rest of your life. The very best of luck to you.
$600 per month equals about $150 a week. If you are working 40 hours, you are making less than $4 an hour. Since this is much less than minimum wage, ask for a raise, get a better job, or a second job. If you don't qualify for a better job, go to your local community college and talk with a counselor about courses you can take to qualify for a job that suits you. Be glad you are living at home, because if you were my 29 year old son still trying for cheap rent, food, and laundry I would ask you to leave.
