# Is there something I should be doing with my tiny amount of money? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [July 18, 2013, 2:47pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845 "2013-07-18T14:47:49Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 18, 2013, 10:44pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/41 "2013-07-18T22:44:28Z")
> [@EmilyG](#): > > $3000 is a tiny amount of money? 😕 > > You could always do what I did when I had that amount: buy a bass clarinet. :rolleyes: Over the course of a lifetime? It’s miniscule. How old are you and how many kids do you have, out of curiosity? I may finally get to be the “get off my lawn you kids have it easy back in my day etc etc” guy here if I’m lucky! ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [July 18, 2013, 11:08pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/42 "2013-07-18T23:08:27Z")
> [@Frylock](#): > > I may finally get to be the “get off my lawn you kids have it easy back in my day etc etc” guy here if I’m lucky! I hope you get that opportunity. Makes it all worth while some how. ---
**Author:** ![EmilyG](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/emilyg/32/364_2.png) [@EmilyG](https://boards.straightdope.com/u/EmilyG)\ **Post date:** [July 18, 2013, 11:25pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/43 "2013-07-18T23:25:22Z")
> [@Frylock](#): > > Over the course of a lifetime? It’s miniscule. > > How old are you and how many kids do you have, out of curiosity? I may finally get to be the “get off my lawn you kids have it easy back in my day etc etc” guy here if I’m lucky! I’m 28 with no kids, and don’t have much money, and probably never will. Sorry for the threadjacking. I guess I just get a little miffed when people say they have $3000 and it’s not much money, or that they got the small sum of $200 for Christmas, when those amounts look like a lot of money to me. ---
**Author:** ![Emtar\_KronJonDerSohn](https://avatars.discourse-cdn.com/v4/letter/e/58956e/32.png) [@Emtar\_KronJonDerSohn](https://boards.straightdope.com/u/Emtar_KronJonDerSohn)\ **Post date:** [July 18, 2013, 11:28pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/44 "2013-07-18T23:28:37Z")
Keep $1000 in the bank for emergencies. Capital One 360 (previously ING Orange) will pay you .75% APY with total liquidity. I find that having money “hidden” at a different bank saves it from getting transferred for nonemergencies as has been known to happen at my home bank. Step up your 401k a bit. Max out any match you get if you’re in any way able to do so. Time is your biggest ally when saving for retirement. Pay off your credit card as quickly as possible. ---
**Author:** ![cotton](https://avatars.discourse-cdn.com/v4/letter/c/c6cbf5/32.png) [@cotton](https://boards.straightdope.com/u/cotton)\ **Post date:** [July 19, 2013, 12:36am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/45 "2013-07-19T00:36:32Z")
> [@Frylock](#): > > We have about $3000 I’d feel safe putting into some kind of, I don’t know, investment account or whatever? But I _wouldn’t_ feel safe putting it into some full-fledged thing that doesn’t let you have the money back for years. I’d want to have access to it on demand. > > And our monthly income minus expense is about $250, which we could put in as well. > > These amount seem laughably miniscule to me, such that it has never occurred to me that our single-income six-member family should even think about “saving money” right now (aside from having the abovementioned funds in our practically zero interest “savings account” at the bank). We’re on a tight wire as it is. > > But maybe I’m wrong. Is there something I should be doing with this? > > I’m looking for practical advice, not moralizing or examples of people mistaking symbolic value for real value. > > (I should mention the $250/month is after a hilarious deposit I make each month of $40 to my “retirement account.” I consider this to be useless and ridiculous, but the other person who has a say when it comes to my money has insisted. Do I have the wrong attitude about this? If so, why–and again, I’m looking for _practical information_ not moralizing or insistence on symbolism.) I’m a broker and if you want to pm me I will help you anyway I can, free of charge. I dont want to do so publicly due to privacy matters for you. Also each person is different as there is no onw size fits all. I dont want to publicly give you advice and someone read it and apply it to themselves. Like I said, no charge. Just glad to help you. You sound responsible and serious about your money. Thats what caught my attention. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [July 19, 2013, 1:54am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/46 "2013-07-19T01:54:49Z")
> [@Frylock](#): > > Interest rate on the card is 8% by the way, so it’s not like we’re sitting on a huge 25% debt like you might be thinking. Still, it’ll be nice to get rid of the thing. It’s been there for ages… Fry, please check your private messages. ---
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [July 19, 2013, 2:05am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/47 "2013-07-19T02:05:05Z")
> [@Frylock](#): > > Rand, do you have specific objections about specific things people said here? > [@Tracijo67](#): > > Probably not so much objection as acknowledgement that we are not investment/finance experts and have only varying degrees of informed opinions. And that this is the kind of thing that you truly would be better off educating yourself about. You can incorporate the particulars of your own unique circumstances into the things you learn. Yep, nailed it (and more the second two sentences than the first–being an “expert” on these matters isn’t necessary, and many so-called “experts” really aren’t. Personal finance isn’t rocket science.). Your question comes up a lot around here. No one has all the facts necessary to give you even an incomplete and useless answer, so any answer they give will by necessity be worse than incomplete and useless. Your question is kinda like asking one of us to buy you a sweater, and make sure it’s nice and fits well. You simply must educate yourself about personal finance and decide these matters for yourself–there is absolutely no other way (well, unless you declare yourself an incompetent and turn over your financial affairs to a caretaker or something). ---
**Author:** ![Ruken](https://avatars.discourse-cdn.com/v4/letter/r/f475e1/32.png) [@Ruken](https://boards.straightdope.com/u/Ruken)\ **Post date:** [July 19, 2013, 2:43am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/48 "2013-07-19T02:43:15Z")
> [@Dewey\_Finn](#): > > I like to have all of my retirement accounts consolidated, so I’ve moved all of my previous 401(k) accounts into the same IRA account at Vanguard and invested the money in index funds and [target date funds](http://en.wikipedia.org/wiki/Target_date_fund). This one or similar companies should be able to walk you through consolidating, and it should NOT cost you anything. Even if it’s a few thousand here and there, they’re hoping you’ll stick with them and continue to invest. ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 19, 2013, 3:31am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/49 "2013-07-19T03:31:17Z")
> [@Rand\_Rover](#): > > Yep, nailed it (and more the second two sentences than the first–being an “expert” on these matters isn’t necessary, and many so-called “experts” really aren’t. Personal finance isn’t rocket science.). > > Your question comes up a lot around here. No one has all the facts necessary to give you even an incomplete and useless answer, so any answer they give will by necessity be worse than incomplete and useless. Your question is kinda like asking one of us to buy you a sweater, and make sure it’s nice and fits well. > > You simply must educate yourself about personal finance and decide these matters for yourself–there is absolutely no other way (well, unless you declare yourself an incompetent and turn over your financial affairs to a caretaker or something). I doubt this. I name an amount, I tell you a goal, and I ask you how to make that happen if possible. How would this vary from person to person? ---
**Author:** ![Nawth\_Chucka](https://avatars.discourse-cdn.com/v4/letter/n/c57346/32.png) [@Nawth\_Chucka](https://boards.straightdope.com/u/Nawth_Chucka)\ **Post date:** [July 19, 2013, 4:10am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/50 "2013-07-19T04:10:14Z")
W/ your large family, you can cut back on a dozen or so dollars a month by buying more bulk foods (think 20 lb bag of oatmeal, 50 lb bag of rice, that sort of thing) and hang-drying as much laundry as you can. You don’t need a drying rack unless you have no doorways or plastic clothes hangers. To touch on the college tuition issue, your kids also have Americorps available to them. ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [July 19, 2013, 4:22am UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/51 "2013-07-19T04:22:01Z")
> [@Frylock](#): > > I doubt this. I name an amount, I tell you a goal, and I ask you how to make that happen if possible. How would this vary from person to person? There are approximately one billion factors that differentiate you from every other person in the same situation. But the most basic one is probably this: what is your risk tolerance for this $3,000? Because I can tell you all sorts of ways to retire on that money in one year, but there’s a reasonable probability that none of them will actually work. ---
**Author:** ![FeAudrey](https://avatars.discourse-cdn.com/v4/letter/f/7feea3/32.png) [@FeAudrey](https://boards.straightdope.com/u/FeAudrey)\ **Post date:** [July 19, 2013, 4:04pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/52 "2013-07-19T16:04:02Z")
> [@Frylock](#): > > We don’t qualify for food stamps, we do qualify for WIC. > > Food stamps are almost insanely impossible to get, it seems to me … You might want to re-check current requirements. About one-seventh of the population (c. 45 million people ) are currently getting food stamps. WIC is under 9 million. SNAP eligibility: [http://www.fns.usda.gov/snap/applicant\_recipients/eligibility.htm](http://www.fns.usda.gov/snap/applicant_recipients/eligibility.htm) WIC eligibility: [http://www.fns.usda.gov/wic/howtoapply/eligibilityrequirements.htm](http://www.fns.usda.gov/wic/howtoapply/eligibilityrequirements.htm) ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 19, 2013, 6:49pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/53 "2013-07-19T18:49:50Z")
> [@FeAudrey](#): > > You might want to re-check current requirements. About one-seventh of the population (c. 45 million people ) are currently getting food stamps. WIC is under 9 million. > > SNAP eligibility: > > [http://www.fns.usda.gov/snap/applicant\_recipients/eligibility.htm](http://www.fns.usda.gov/snap/applicant_recipients/eligibility.htm) > > WIC eligibility: > > [http://www.fns.usda.gov/wic/howtoapply/eligibilityrequirements.htm](http://www.fns.usda.gov/wic/howtoapply/eligibilityrequirements.htm) Even if I pretend I have zero in the bank and no cars, it still declares me “probably ineligible.” ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 19, 2013, 6:53pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/54 "2013-07-19T18:53:26Z")
Hm… however even if I lower the income down to just ten thousand a year (no assets, six kids, no other income) it still says I’m “probably not eligible.” So maybe I should talk to an actual person about this… ---
**Author:** ![SmellMyWort](https://avatars.discourse-cdn.com/v4/letter/s/ea5d25/32.png) [@SmellMyWort](https://boards.straightdope.com/u/SmellMyWort)\ **Post date:** [July 19, 2013, 7:10pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/55 "2013-07-19T19:10:30Z")
My credit union has a financial planner on staff that will sit down and meet with members for free. My wife and I learned a lot in that meeting and the follow up meeting where he’d put together a portfolio of our finances and a plan. If you belong to a credit union you might see if it has a similar service. Other than that, **SpoilerVirgin’s** list seems pretty good to me as far as a general framework for personal finances. ---
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [July 19, 2013, 7:25pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/56 "2013-07-19T19:25:24Z")
> [@Frylock](#): > > I doubt this. I name an amount, I tell you a goal, and I ask you how to make that happen if possible. How would this vary from person to person? OK. Where exactly in your OP did you “tell [us] a goal”? ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 19, 2013, 7:41pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/57 "2013-07-19T19:41:11Z")
I didn’t. I didn’t intend that to be a summary of an OP, just a general response to your general point that this is a question it’d be hard for any outsider to answer. Let’s put it this way, in one and the same post you said it’s “not rocket science” _and_ that it can only be answered with fairly intimate knowledge of the details and a good bit of learning. There’s some tension there… I agree with you that it’s not rocket science, and in part exactly because of that, I think fair answers can be given with some basic info absent intimate detailed knowledge or expertise. ETA: In terms of your sweater analogy, the OP is basically saying “here’s how much I can pay for a sweater, can you show me the basic types of sweaters that fit that price point?” I mean, like you said, it’s not rocket science. ---
**Author:** ![Frylock](https://avatars.discourse-cdn.com/v4/letter/f/ce7236/32.png) [@Frylock](https://boards.straightdope.com/u/Frylock)\ **Post date:** [July 19, 2013, 7:44pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/58 "2013-07-19T19:44:36Z")
I mean maybe you’re confusing the OP’s question with the question: “Given my household finances, should I spend X dollars on a sweater?” But that’s not the question. The question is, “Given X dollars, what kinds of sweaters can I buy?” If people proferred the opinion that if that’s all I have to spend on a sweater, I maybe should wait til I have more to spend on a sweater, that’s fine. It’s a general point about sweaters, not a specific point about my financial situation. ---
**Author:** ![Rand\_Rover](https://avatars.discourse-cdn.com/v4/letter/r/db5fbb/32.png) [@Rand\_Rover](https://boards.straightdope.com/u/Rand_Rover)\ **Post date:** [July 19, 2013, 8:20pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/59 "2013-07-19T20:20:05Z")
No–I was asking where in your OP to this thread did you tell us a goal. You are now telling us that it is so easy because you can just tell us a goal and we can tell you how to accomplish it, but then the very OP of this very thread doesn’t state your goal. Examples of goals would be “I want to be 100% god-damn sure that I will always have at least the $3,000, and I am happy earning a very small return” or “I don’t care if I ever see the $3,000 again, I want to take a shot at turning it into a huge sum.” Your OP doesnt’ say anything like that at all. The whole point is that there is no single right thing to do wtih any amount of money–what you do with it has more to do with your preferences than you seem to realize. And there’s no tension with what I said about rocket science–personal finance isn’t that difficult to learn, and isn’t that difficult for one to apply to oneself, but it is impossible to apply to someone else. None of your example sweater questions are anything like the question in your OP. Look at your title–what “should” you be doing with the money–that’s a question about the fit of the sweater, not the basic types of sweaters available at different price points. Also, once you’ve educated yourself about personal finance, you will know the different types of sweaters available and where to look for more info about them, so you won’t need to ask us about it. ---
**Author:** ![Dewey\_Finn](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dewey_finn/32/4222_2.png) [@Dewey\_Finn](https://boards.straightdope.com/u/Dewey_Finn)\ **Post date:** [July 19, 2013, 8:20pm UTC](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845/60 "2013-07-19T20:20:21Z")
One bit of advice I’ve heard is to see a “fee-only” financial planner for a consultation of a couple of hours. The “fee-only” suggestion is to avoid those guys who make money based on how much trading you do, and therefore might have an incentive to churn your portfolio. [Previous page](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845.md?page=2) [Next page](https://boards.straightdope.com/t/is-there-something-i-should-be-doing-with-my-tiny-amount-of-money/663845.md?page=4)