So......any money experts around here?

As I am coming into a little money, more than I've had in my entire life, I want to know what I should do with it. I know a lot of people will be glad to "take me shopping," but I've already done as much shopping as I can or should do before I even have a dime in my pocket. Right now I'm planning on saving 2/3 of it, and splurging the rest, but I would love the opportunity to own my own home for the first time in my life, so I'm gonna put that bulk away for that purpose, only I have absolutely NO idea of what that is going to entail, and whether I should try to invest some in mutual funds, or CDs, or savings bonds, or stocks, or anything. Never had the need for a money manager (you don't need a money manager when you fall into the wage category that is just above poverty level), so it's a lot of language I've never learned to speak. My wants definitely are outpacing my needs, though my needs aren't that atrocious at all: a new digital camera, a laptop, a full tank of gas and a new mattress set are the only priorities, but I'm looking at all the fun things I used to only dream about but might be able to afford soon.

So if any one has suggestions, let me know. Mainly, how hard or easy is it to buy a house? What things should I avoid at all costs? I know one of the mutual funds I was interested in was Pax, which invests only in companies which do not profit from wars, and there's another one I can't remember the name of that only works with companies that do not pollute the environment. Just remember this: I need it in layman's terms, not financial doublespeak!

You'll thank me later.

B-)

A consistent return of 8 to 10% is what you should look for.

Best place to stick it while you decide what to do. A small slice to use on a splurge is okay, but decide on a certain percentage to do it with, and acknowledge that that's money out the door.

If you can join a credit union--pretty much every one can find one--do that. More often than not, you'll get the best interest rates for home purchase through them.

That's all I'm comfortable saying, and DO NOT TAKE STOCK ADVICE FROM PEOPLE ON THE INTERNET.

How long before you need it to put down a down payment? CDs are beginning to pay 4% for a 90-day term, which is way better than they've been for a long time.

Mutual funds - well, if you don't mind risking the principal, which I'm not sure is a good idea right now (i.e., you're planning on spending the money fairly soon . . . ?) Even mutual funds aren't doing all that well lately. I think I'd go for the sure thing with a CD.

Have you maxed out a Roth IRA or any other tax shelters? How does your retirement look? How much do you really need for the down payment? I think 10% will eliminate the cost of mortgage insurance. Any excess could go toward longer-term investments - I've seen some 10 year bonds getting good rates lately.

Lots of questions.

and a money market. Learn, take your time. Do not depend on a financial advisor or broker to really help you. They are selling a product, learn as much as you can on your own.

As far as buying a house it depends on how much of a mortgage you will need as the income you have will determine how large a mortgage you can get. Keep it as small as you can, the mortgage that is. Location is the important thing, a smaller house in a better neighborhood would be a better investment than a larger house in a not so desirable area.

Don't spend it. And invest what you save into something where you can earn some type of return. You can go really conservative and get government bonds, a bit riskier and get FDIC insured bank certificates of deposit or a bit riskier and get a balanced mutual fund. When I say a balanced mutual fund I mean one that holds approximately equal amounts of equities and bonds. A good performing balanced mutual fund is not particularly risky.

If you don't immediately know what to do with the cash then deposit it as soon as possible into an interest bearing account.

Look at the Morningstar ratings to select a fund. Most libraries carry Morningstar information in their reference section. The essential information about the fund is summed up in a page by Morningstar. Morningstar provides research and has no commercial interest in selling any particular security.

Oh, yes, and be very skeptical of anything that you are told by someone who has any financial interest in giving you financial advice. Brokers and financial planners typically are paid on a commission basis and are rewarded every time you buy or sell.

Avoid buying and selling as much as possible. The fees reduce your return significantly. If the principle amount is small it can actually erode due to fees.

Don't be intimidated. It is your money. Learn how to use and invest it well. Almost all financial instruments can be understood in terms of three basic financial concepts - ownership, lending, and time value of money.

Make financial decisions based on financial information. Then apply your own morals, values and priorities to determine whether that particular course of action is suitable and acceptable to you. If not, then go to your second choice and apply the same criteria. Socially responsible investing is a good thing but don't limit yourself to only those alternatives. Consider all your options.

save it for a rainy day. God nows there are here if not just around the corner

I'll kick this for the morning crowd and then mull over the various options.

As far as the amount, I'm not certain yet. I just got my disability and this is backpay for over three years. I don't have it physically yet, and I understand it takes a little while to actually get it in hand, but I'm not in a rush! However, since I've basically lived "on nothing" for quite a long time, this is euphoric, and yes, I will admit that the temptation to blow it all is great. When you've never had it before, it's a heady feeling!

I will stick it into a good S&L/CU for awhile. I'm not in a rush to do anything significant yet--my friend who owns the house I'm living in right now (rent-free for the past year and a half) says he might sell if I got my own house, but I don't think he's really in a rush to do that. I can now invest a little more time and money to this place and fix it up nice, though, because I could be here awhile. :)

I do have to do some minor work on the car--brakes, tires, struts and some minor electrical stuff, but now that I can afford it, it'll get done!