Yay for FAFSA!

This afternoon I spent two bliss-filled hours going through bank statements and filling out my FAFSA form with my dad. While not an extremely exciting event, going through all my forms and options raised multiple questions as to how all the money is handled, as well as what the best way to go about investing it is.

My main question had to do with my IRA. I'd been reassured that if I put at leaste $2000 a year into that account I will have around a million dollars by the time I retire. I don't know if this is true, but it's sounds easy enough, right? Wrong. I understand interest and all that jazz, but what gets me is the fact that those fun, loving accountants think that a highschooler or college student is going to be able to continually fund their account.

I see it as a decision between long-term and short-term benefits. If I can come up with that $2000 every year and don't have to pay for anything else, then alright! I'll be rich! However, I forsee some minute expenses that will be showing themselves in the next few years. With my current part time job (yes, it doesn't pay great, and that has an impact) I just barely made enough to meet this year's quota. Next year I won't have a steady (if you can call it that) income, plus I'll have to pay for school. With my lifetime savings I have just enough to cover my portion of schooling for the first year; plus the IRA money. Next year, though, I'll have....umm...oh yeah, nothing. Is it really beneficial to work towards and IRA when there are so many other pressing costs?

Taking $2000 out of your (a student's) income means $2000 more that you will have to take out in loans. This means that after you're done with school you'll have to pay that much back to the government (or whomever you get loans from), plus interest. It's no surprise that most kids fresh out of college won't have any extra money lying around to immediately pay off loans, plus put some cash into an IRA. Extra loans could lead to more loans to pay off school, then loans for other adult necessities (home, car, etc.). Starting off in too much debt almost invites one to jump into a vicious cyle of loans and interest.

So, my question is this: Is it worth it too make the extra effort to put money into an IRA so you're garuanteed to have a comfertable retirement? Or is it better for your personal finances to take care of the pressing expenses before worrying about your financial situation 50 years from now?

Festival Money

In the spirit of Mardi Gras, I found this article, http://abcnews.go.com/Business/BusinessTravel/story?id=4262856&page=1 .

It talks about how the many festivals that occur around the world are major sources of income for certain cities or countries. Just as the Mardi Gras festival is religiously celebrated in New Orleans, cultures across the world have their own festivities to look forward to, such as Rio Carnival in Rio de Janeiro, Oktoberfest in Munich, and The Running of the Bulls in Spain.

Even though New Orleans' Mardi Gras is nowhere near the size it was pre-Katrina, the traditional celebration still brought in an estimated billion dollars. Rio de Janeiro earns over $500 million each year during Rio Carnival, much of which comes from the 700,000+ tourists that poor into the city. The 17-day Oktoberfest gains approximately $1.4 billion as the city of a million caters to the six million visitors.

Tourists do not have to purchase huge, extravagant items to provide these cities with such an added income. Much of the money is earned through the purchase of food and alcohol, along with simple souvenirs. If the city is willing to prepare for and clean up after thousands, even millions of tourists, it will certainly reap the rewards. People will come from miles around to experience a renowned celebration, bringing their money with them.