Young guy (<20) looking for economic advice.

NotEarth27 · 2018-05-18T20:45:03+00:00

Just try to get your feet wet in a few strategies. Some ideas:

-Invest a percentage of your income each paycheck to index funds.

-Research individual stocks and buy based on your research.

-Consider cryptocurrency, but only if you believe in the technology.

-Consider buying gold or other metals.

-Open a CD account for guaranteed (yet underwhelming) returns.

-Start your own business, as failing in your 20s is not as big of a setback.

-Create passive income streams. If you do any art (music, drawing, writing, etc) start building a fanbase.

-If you buy a house, consider getting one with at least one extra bedroom that you can rent out.

-Don't. Buy. Nice. Cars. The only exception is if it's your primary passion, and you're buying it because YOU enjoy it, and not some bullshit reason like showing off status.

There's no one right way about this. But the main concepts are: spend most of your money on things that increase in value, spend most of your time doing things that you can profit from, save most of the money that you make, and never spend money just to keep up with others.

Regardless of what route you take, the peace of mind you'll get from having a stockpile of money in the bank, or dividend checks flowing in, or people buying your art/products while you're sleeping will give you a unique freedom most people don't experience in their lifetime because they're too busy trying to show off.

KneeDeepThought · 2018-05-18T19:14:15+00:00

Investing is a whole encyclopedia of stuff which I won't touch on here other than to say find something that is slow steady growth rather than chasing quick hits. Never try to time the market. I like Vanguard ETFs a lot for this, but to each their own.

Avoid things like brand-name anything, buy generic and save 50% off the bat. Avoid spending anything you don't have to with an occsaional investment in your own hobbies/interests which improve your quality of life. Definitely avoid scams like extended warranties and other BS companies will try to cram down your throat.

Live below your means but every once in a while buy yourself one thing on your wish list as a reward for your financial responsibility. Stuff like new strings for your guitar or that end table that you were eyeing and just went on sale.

Keep a spreadsheet of all your monthly expenses and try to dial them all down each month. use less electricity, gas, groceries, etc and you'll be surprised how much the savings add up. Definitely minimize going out to eat or other entertainment costs outside your home. Going to parties at friend's houses instead is way better for your wallet and you typically have much better socialization there.

AugustusRome1 · 2018-05-18T19:09:12+00:00

Wait until the next crash to go all in. Market is very overvalued right now.

chymmi · 2018-05-18T19:08:52+00:00

When you are so young, the best investment is to start your own business.

learn to use Library (or buy at your own) and look for financial intelligence, success stories or motivation books.

Truth is (these) books changed my life

TheAccidentOf85 · 2018-05-18T22:29:55+00:00

Invest in yourself, invest in education, classes, skills.

If you have $5K, 10K, 20k... investing that into a degree or a certification in something like computer programming will open doors to new careers that could pay you 10s of 1000s more than you earn currently. The return on the investment you make into yourself and into your education and career now will be much greater than putting money into the stock market right now. The 8-10% returns you may have achieved for a few years will be more than made up for in the extra salary you earn and now you’ll have more to invest in the stock market.

Invest in things that will make you earnings potential bigger, not your stock portfolio bigger.

Official_RCLE · 2018-05-18T20:22:28+00:00

Get a safe and add cash to it whenever you can. Just save it.

gromdoom34 · 2018-05-18T21:41:21+00:00

Buy a small flat, don't rent! You can sell it later. Even if you make a loss, you have still more money than if you paid rent (you would have 0). You want a bigger flat? Sell the old one or lend it. Never spend more than 1/3 of your income on housing. If you have money left, look at the other tips.

tipo33 · 2018-05-18T21:30:29+00:00

Invest in what you like or think will grow, try to set aside 5-10% to buy silver or gold bullion coinage.

DrDread74 · 2018-05-18T22:15:42+00:00

I recommend 401k at some level. If something goes wrong and you go bankrupt (My whole family lost everything on housing crisis), they can't go after the 401k its literally a bankruptcy safe zone.

...but it is NOT a DIVORCE safe zone, retirement funds are split in divorce. I doubt this will apply to you but hey, if YOU DO get married or even just live with someone else and share bills just remember this one simple thing about divorce financial splits: Whatever separate property you had BEFORE the marriage is YOURS after the marriage PROVIDED you NEVER mixed in money you made while you were married. If you have a bank account with 50k in it before you get married or roomate with your girlfriend, MAKE ANOTHER BANK ACCOUNT for your "married" money to share. Never ever put anything into that original bank account again while you are still married or even if you are "roommates" or it will be considered 50/50 split if theirs a court battle. You can move money OUT of that separate account into the marriage but any such cash is now considered a "gift" to the marriage and youll never get it back, so DON'T DO IT unless you're getting something back. Lets say you offer to pay 20k into your girlfriend/wifes house ONLY IF she puts both of you as equal owners of the house.

As a lifetime investment, like other peopel have said, diversify a little bit. Do SOME 401k or an IRA at bank let it combound your whole life. Dabble in some long term stocks or vanguard funds etc.

You should REALLY also consider downgrading yourself in general, as in, get a house when you can but a SMALL house not a house that takes 33% of your income to mortgage on 30 yr lease (a maximum by lenders standards). Get a house that costs 25% of your income on a 15yr mortgage. Same with your car. Get something nice and new, but NOT a fning BMW.

Live well BELOW your means. Steadily put significant money into safe long term investments. Keep YOUR property separate in a marriage or relationship. Never trust anyone with your finances, not even family and especially your spouse/GF. Remember that first girlriend that dumped you and ruined your life for like 2 months as a kid? Well when you are older its not your feeling, it will be your fucking house, learn your lesson.

learn2fly77 · 2018-05-19T06:43:14+00:00

STAY OUT OF DEBT,

also most college majors are traps and not worth it. Do your research.

Webweasel_priyom · 2018-05-19T10:01:48+00:00

Get a pension going and overpay into it if you can. If your in the UK and you take a private pension then you get your tax back. If your a Higher rate tax payer, you get 40p for ever £1 you put in. Second (again UK here) you can put up to £20k a year tax free in a stocks and shares ISA. Beyond that i'd look into high dividend paying stocks.

pyrrhic_victor · 2018-05-18T22:58:10+00:00

/r/wallstreetbets

Be prepared to lose your first million.

Title	Young guy (<20) looking for economic advice.
Author	Potentate4
Upvotes	19
Comments	15
Date	May 18, 2018 6:57 PM UTC (8 years ago)
Subreddit	Posted in /r/MGTOW
Original Link	https://old.reddit.com/r/MGTOW/comments/8kflh8/young_guy_20_looking_for_economic_advice/
Archive Link	https://theredarchive.com/r/MGTOW/young-guy.555357 https://theredarchive.com/post/555357

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