Save or spend my money?

[live4u120]

Hey guys,

I got a little summer job, and I made a couple hundred bucks, and I was wondering, should I use the money to spend on some new clubs? Or should I save it, and spend it at a good time? It's so tempting to just get some Cleveland CG7's, but I think it might be wiser to save it.

Thanks guys!

[clearwaterms]

its always the smart answer to save it. While its tempting to go out and buy a set of new irons or a new driver, or a new cell phone, or 1 of 100 other things you can buy with a "few" hundred bucks in your pocket. Unless you really have to have any of those things, its better to save the money for a rainy day.

[Fraser]

Depends. Are your current clubs a pile of junk?

Personally now is a great time to start saving and investing, especially if you have an interest in the stock market. Not quite as lucrative as a few months ago but I had some spare cash in a checking account and threw it in a fund I'd read about, made almost 50% on it in less than 4 months.

I think it is always good to start saving a bit each month from a young age. Whether Einstein said it or not the saying 'compound interest is the most powerful force in the universe' is not far off the truth.

[ks8829]

your wise to save the money for something you really need to spend it on.

[fredloves2golf]

I'll throw out the dissenting opinion and say you should spend it, if that's what you want to do.

When you get older and have a steady stream of bills, and perhaps a questionable stream of income, saving takes priority. As a student, you're still free of all those life challenges.

Besides, what's the incentive to save? If it's just a "few hundred", while that sounds like a lot, it's not. Banks aren't paying much interest on deposits (I think I get 0.55% on my savings, and a whopping 1% on a CD). A brokerage account for stock trading is going to ask for a few thousand dollars minimum.

My parents always told me I should work for my money and then let my money work for me. Well, the financial institutions aren't holding up their end of that equation at the moment. So, buying a set of golf clubs (especially if your current set is old or low quality) can be money working for you, as an investment in yourself to get better at this great game of golf.

[Fraser]

I'll throw out the dissenting opinion and say you should spend it, if that's what you want to do.

And the seeds you sow at a young age reap dividends in the future. Far too many people heading into retirement are in deep doo-doo because they didn't plan sufficiently for their retirements and financial irresponsibility at a young age has continued.

Why not do a bit of both? Compound interest is a wonderful thing... As an example...if the guy is 18yrs old and has $500, and puts in $10 a week until the age of 60, returning 8% interest p.a. (a pretty conservative investment) that money will be around $185,000. Sure inflation eats away at it but it goes to show...make it $20 a week and you're looking at $355,000. Is losing $10 or $20 a week going to make that much difference to your quality of life? I very much doubt it. I don't think people should live in poverty in order to save for their retirement but sometimes people lose sight of the bit picture. Do you need to buy new golf clubs every year, are they going to make that much difference to your game? Probably not...However, if your clubs are ropey pieces or garbage then it might be wise to invest that money into something worthwhile, like new clubs!

Besides, what's the incentive to save? If it's just a "few hundred", while that sounds like a lot, it's not. Banks aren't paying much interest on deposits (I think I get 0.55% on my savings, and a whopping 1% on a CD). A brokerage account for stock trading is going to ask for a few thousand dollars minimum.

Scottrade don't requite any funds to open a brokerage account, or at least they didn't when I opened my account there. Just $7 for trades and that's it. Perfect for playing around with a bit.