Advice Needed re: Personal Finances

[backtoschool]

I just got out of school and landed a great paying job. Obviously, I need to start investing. I was a liberal arts major in college and don't really know much about finances (unfortunately and embarrassingly).

I've purchased the Amateur guide by Peter Lynch and someone gave me a copy of Beating the Street.

Does anyone have any tools or advice on how to get started (including 401K, stocks, mutual funds, etc.)? Right now, I just need to learn the basics. My parents were immigrants so finances were never part of my life growing up and so I'm a complete beginner (hence my handle--back to school).

So any advice would be greatly appreciated.

[rvtraveler]

Backtoschool, you have the right attitude. You are young and already started to think about saving and your later years. I wish there was as much information when I was your age. No one ever explained to me the importance of saving when you are young. You will do well, just keep on reading and learning. Good Luck.

[Ima saver]

Start reading. The wealthy Barber is an easy to read book by David Chilton. So is "the only other investment guide you will ever need" by Andrew tobias.
I would suggest you get a prospectus from Vanguard Mutual funds. I like the Index 500 fund. It would be very wise to open up a Roth Ira when you have saved enough to open one. Vanguard has a $3000 minimum. I would start there. Put your savings into a high interest savings account until you can accumulate the minimum.
Keep reading this forum, you will learn a lot. You are smart to start young.

It's a cliche, but pay yourself first. Signing up for the 401k and contributing at least enough to max out your company match is a good start.

[zetta]

Although you asked for investment advice, I'd also like to suggest reading All Your Worth -- this will help set up your day to day finances so that you have money available to invest.

Smart and Simple Financial Strategies for Busy People by Jane Bryant Quinn is a good primer on both basic finances and investing. Her advice is targeted toward people who know they need to manage their investments but aren't really interested in spending a lot of time doing so (since you were a liberal arts major I suspect your primary interests lie elsewhere!)

[Broken Arrow]

I would open a high-interest savings account and start up an emergency fund.

I would talk to your employer about 401k

I would look into starting a Roth IRA on your own. A good place to start is www.vanguard.com.

For the wise, school is always in session.

[InDebtInDC]

I just got out of school and landed a great paying job.

I don't know how much you make but your first job always looks like a lot of money. Don't get into that mentality. People who do tend to get themselves into debt because they think they can always make more money. I did.

Back then $50,000 a year looked like a lot of money. But when you take out taxes, I was barely taking home $3,000 a month. That's nowhere close to what I needed to pay for housing, 401(k), transportation, insurance, debt, living expenses, etc.

Here's the brutal honesty part: I make more than double that now and I feel like I live in poverty. Why? My finances are starting to catch up to me, and I'm trying to get them under control. Any extra money left over each month goes towards paying off debt.

Do your research, spend wisely, save whenever possible, and good luck.

[Fern]

1. Contribute as much as you can to 401k first.
2. Then max out a roth ira
3. if you have any discretionary funds left over after that, invest in an S&P index fund with a reputable fund house like Vanguard or T. Rowe Price. An S&)P 500 index fund is well-diversified, provides long-term growth and low annual expenses. You could diversify further with small and mid cap stocks and a much smaller amt. in a bond fund, since you are very young. But to know what i'm talking about, you will need to read some basic primers on mutual fund investing.

[myself]

- Pay yourself first. 10% is the minimum. This should go into a high interest savings account (i.e. EmigrantDirect.com, or INGDirect.com). This can be used for emergencies and downpayment on a house, and downpayment (or full payment) for a vehicle - if necessary and prudent.
- If you can, put into your 401K, up to your employer's matching contribution.

[cptacek]

My brother and sisters are just getting out of school and into their first ok-payng jobs, and were asking similar questions. I wrote them an email about how to get started investing. I copied that email to my blog:
Beginning Investing: Cptacek's Personal Finance Blog

You might find it enlightening.

[Tree0164]

I would open a high-interest savings account and start up an emergency fund.

I would talk to your employer about 401k

I would look into starting a Roth IRA on your own. A good place to start is www.vanguard.com.

For the wise, school is always in session.

Simple but great advice.

[Daniel_Shop]

I like these three books

"Millionaire Next Door" -Thomas J Stanley
"Rich Dad, Poor Dad" - Kiyosaki
"The Richest Man in Babilon"

All those three will teach you what it takes to be wealthy. However, if you want to learn specificly how to invest or build a business, that is another different world.

I didn't find a book that explain you specificly HOW TO. That comes from experience.