<prompt> Human: Hi rpersonalfinance, Ive been doing some reading and Im about to take on my first big-time paying job this summer. At the end Ill probably end up with 10,000 in income, which is more than the 1,000 in checkings and 1,000 in savings I have now. I am fortunate enough to have enough scholarship to cover my living expenses during university, so I dont have much outflow other than food and fun. I have a reliable car and feel like Im doing pretty well in my studies and career. How much should I invest in myself vs. how much should I stow away? I could easily open and max out a Roth IRA and still leave a significant portion leftover, but being 60 is so far off, and I could also make a lot experiences and memories with that money now. As a middle of the road, I could also put away a portion in a non-retirement mutual fund, and still reap the benefits of compounding interest, correct but still have to pay taxes on earnings?A friend of mines financial advisor told him most people your age are on the wrong side of compounding interest, so enjoy your youth and worry about investing later, but Im not sure if thats sound advice when you look at how much early investing could make. Here is what I am thinking of doing with the earnings:50 Retirement Roth IRA Mutual25 Liquidable Investment Mutual Fund25 ExpensesFunI could also do something like this:40 Retirement Roth IRA Mutual40 Liquidable Investment Mutual Fund20 ExpensesFunThank you so much for reading my post and your advice. I know this is fairly simplistic; I just want to make sure Im synthesizing all that Im reading correctly and configuring the best plan for my circumstances.  <response>: Please read the information found in the FAQ particularly I Have X ... What Do I Do With It?! and the Long-Term Investing Start-Up Kit You may find Your IRA and You: Basic Information and Your 401k and You: Basic Information worth a read as well. 