conversation: User (helpmoneythrowaway): "And I'll be making a hell of a lot more money than I had been previously.\n\nI've got a few questions (I'd like to ask before I start going through the common topics on the sidebar) about a few things.\n\nFirst, a little bit about me and why I'm worried about my money.\n\nI'm 22 and haven't gone to school yet. I couldn't afford the time or (mostly) money to go. I was raised on welfare and I've never really been able to have "extra" money for almost my whole life. I've got a bit of an odd situation in that we have a business that pays at the very least my car payment, our rent, and for itself.\n\nI had been working part time making $15/hr, and I'm pretty sure I made 13K last year. My new job has me starting full time and at 43K annually.\n\nI'm worried that I'm going to go spend-happy (but I think I'll be okay), so I'm taking my (much larger) paycheck from my new job and cutting in about half. The smaller portion will go to my checking, and the larger portion to my savings. If I continue to live how I did before I got the new job, I'll be able to save what seems like a large amount of money (to me at least) in a year.\n\nSo here are some questions:\n\n1. I've got 1,500 in a 401K from my old employer. I got a letter stating that because it's over 1,000 they won't charge me anything to keep it, but I'd really rather have nothing to do with that company in the least. I'm opening a new checking and savings account and was considering opening a Roth IRA through PNC, but I know very little about what a 401K or an IRA or anything really is. What do I do to start saving money for retirement other than putting my money into savings? (43K from ~15K is a huge bump, I can put a fair amount into savings every paycheck)\n\n2. My new job is with a non-profit, and has full benefits. This includes a 403B (I have no idea what that is other than it's similar to 401K, and I don't  really know how much I understand what that is), with employer contribution up to 6% on 5% (on 2% they'd match at 2.4%, it adjusts UP TO that much). At my old job I had 2% going into my 401K, but I'll be making more than I need to live how I have been, and am considering upping the percentage to 5% after I get some emergency savings. From what I get, it'll be tax free money now that I get taxed on later (when I retire).\n\n3. I have a small amount of debt other than my car payments (less than $1,000) that I will be paying off first thing. Is it wise to get a credit card and use/pay it off immediately to start building credit? I fucked up royally and have a great chance to fix it, and will need good credit to get a mortgage (I assume).\n\n4. I don't need to hear "don't buy a car", I'm trying to plan out getting rid of my minivan for a much needed pick up truck in the next year or two. We have horses and a business, and a pick up truck (with a cap for the bed) makes much more sense for what we do than the minivan does. I know a few people I can take with me to look at trucks/auto sales in general, but I want to make sure I can plan properly for a used truck (ideally used as a car by someone who didn't realize they needed a truck), as my minivan isn't meant to be used as a truck.\n\n5. How much money do I need to start investing? As I said before, I'm 22 and I'd love to get my money starting to make me money. I've got my whole life ahead of me and really want to get this started off right, so that later when I'm old I can take care of myself.\n\nIn the short term, we're looking at getting rid of girlfriend's mom SUV (she can't afford it, we told her not to get it forever ago and she did anyway. She was in a bankruptcy but wasn't making ends meet and the lawyer was a total prick. Long story but we went over how much money she made, how much money we made, and decided it was best if she didn't continue with the bankruptcy and worked with the companies she owed money to and we took over paying her bills for her). Gas prices are too high, she has to drive too far to work, and it's old and kind of a piece of shit. We were going to look for a cheaper, kind of beat up car for her just so she doesn't have to worry about gas and her car completely breaking down on her. Other than that we're not planning spending any money out of what we normally would. It's just old credit card debt from me, and setting something up for a cheap used car for girlfriend's mom.\n\nThis is a throwaway because I feel bad about much money I'm making (and especially how much MORE money I'm making compared to how much I had been making)"
  Self: "Agree with most of the investment comments here. Couple advice points to add.\n\nWhen buying your car, try to have as much cash on hand as possible, and most likely you should try to secure financing from your bank or credit union, not the dealership. They make a lot of money from financing, and some places will try to pull shit on you. I'm sure there are threads around here that highlight things to look out for - just do some extra homework on that prior to the plunge.\n\nIf you have a credit card now, don't close it. Even if you don't use it. Part of your credit is measured by the length of time you have those open, so it can do you good to keep your oldest credit card open. \n\nYes, you do need good credit for a mortgage if you are thinking of buying.\n\nAARP has a decent calculator for playing around with how much you need to invest based on your age and retirement expectations.\n\nhttp://www.aarp.org/work/retirement-planning/retirement_calculator/\n\nDo look into school. In a lot of cases, you can start at a cheap community college and transfer somewhere to finish the degree - saves a lot of money. Depends on your line of work, of course, but it can definitely help you in the long run."
  