what is the smart thing to do with $1000 at 20 years old?

sjswander94 · 2019-12-29T21:23:08+00:00

I’m a stock broker. 1k in stock is a waste of time and money. Even if you get a solid return on investments let’s say 35%for the year( which is fantastic, the best hedge funds don’t even do this) your only making 350$. You should invest the money in yourself. Vacation/traveling experiences , wardrobe, gym membership, mma/boxing classes, at your age you should be building an image and investing in your future self. Until you have a reasonable amount of cash where the return on your investment will actually make a difference to your income or net worth I wouldn’t bother. Unless your some kind of whiz day trader who can make 100% returns monthly your wasting your time with stock with anything under 100k.

RPNorvell · 2019-12-30T08:51:58+00:00

1 g is a sneeze.

Use it to create the beginnings of your emergency fund.

blysol · 2019-12-29T21:06:06+00:00

Do some online or in person courses in a skills you've been wanting to pick up. At 1k you should be able to get some deep dive programs or certifications.

PimPedOutGeese · 2019-12-29T20:50:33+00:00

Well when you say invest we aren’t talking about 5 months here or a year there. Not enough return in that short of time so let’s talk about long term.

Can you add more income or just the initial >=$1000? 100 bucks a month is a fantastic start and not much of a dent in the pocket.

Either way a decent mutual fund with compound interest @ 8%+ will give you about 1500 in 5 years if you do nothing... you add in 100 a month and in those same 5 years your looking at about 8500. Big difference there.

You can’t beat ROTH IRA as long as it compounds interest. If you can max out those contributions early enough you will easily retire at 45ish... of course don’t pull it out early. Also finding an extra 600 bucks a month isn’t exactly easy to do... but your young and if you make enough it’s a viable option.

EDIT: Forgot to add that you could do stocks but they are very volatile compared to other safer investments that have decent similar ROI. You COULD do stocks but just be prepared to wager the risk vs the reward. Either way find a financial advisor you like and trust. If you choose to go the investing route.

319Skew · 2019-12-29T22:23:12+00:00

That's a lot of lottery tickets right there.

LucidBananna · 2019-12-29T22:32:27+00:00

Just keep it as an emergency fund tbh.

2019-12-29T20:52:05+00:00

Don't sell shrooms, if for some random reason you were ever to get caught you would never be able to join the AF and depending on the state and the amount you have, you could be a felon.

I would honestly just sit on the money and save and put it in a fund to save for a house. Thats just me though. I live in an expensive state and I value very highly owning my home one day. Can't have a family if you don't have a dwelling for them to live in.

2019-12-29T23:42:27+00:00

Spend it on coke and hookers

Nay2003 · 2019-12-30T01:41:49+00:00

buy some nice shoes that aren’t too expensive. everyone likes nice jordan ones or air maxes

Title	what is the smart thing to do with $1000 at 20 years old?
Author	olKoozii
Upvotes	1
Comments	35
Date	December 29, 2019 8:36 PM UTC (6 years ago)
Subreddit	Posted in /r/askTRP
Original Link	https://old.reddit.com/r/asktrp/comments/ehb48g/what_is_the_smart_thing_to_do_with_1000_at_20/
Archive Link	https://theredarchive.com/r/askTRP/what-is-the-smart-thing-to-do-with-1000-at-20.303491 https://theredarchive.com/post/303491

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