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Free registration at the forum removes this block.Thanks for your response!
I've thought about the idea of an emergency fund, but as you said the money will waste away. I am thinking about the possibility of putting the emergency fund in a low risk investment that can be accessed instantly. Perhaps I could have 20% of the emergency fund in cash and the rest in the low risk investment. I'll see.
I'll have to think about some ways I can allocate the rest in a smart way that would be worth while.
Thanks again for your input!
My bad I mistyped. Its 4% a year that I'm getting, not 4% a month.Thanks for your response!
I agree, it's nice not to be stuck living on the edge. However in my situation, where I am 20 years old with no kids or real responsibility I think I can afford to live on the edge a little.
4% a month would be an absolute dream. I have been calling around in Europe to different banks and the best response I had was 9.95% a year.
I'm still calling banks to see if anyone has something better for me.
Thanks for your response!It's your money; do what you feel is right.
As a suggestion, here's what I did:
Build an emergency fund (6 months to 1 year) in an account with instant access to these funds.
The goal is to have enough that would last you for that duration, covering essentials like food and housing.
Cons:
This money won't generate additional income and will gradually lose its value.
Pros:
You feel secure and insured against unforeseen circumstances.
You always have access to this money; it's yours.
You don't make decisions out of desperation but out of financial stability.
After you've built that emergency fund, start investing in your business, and try stocks, CFDs, government bonds.
Thanks for you response!why not invest it into your business?
Thanks for your response!Here is my opinion.
If you want to invest your money in ANYTHING, make sure to do a "damn well of research" in the thing you invest.
I watched way to many scam/fraud documentaries of people who invested in companies/crypto who got badly scammed because they are greedy, very greedy and didnt use their brain.
Whatever you do, use your brain and a lot of due dilligence.
I mean investing is a skill, learn it before doing it.
Also be aware of these crypto groups where they say "oh we are in this together" hell no, thats a lie, its a zero sum game.
I would invest it in you, your education and knowledge if i where you
Thanks for your response!In autumn/winter, buy used equipment people will need in summer. Sell or rent out winter stuff.
Examples: boats, AC units, caravans, bikes, camping equipment, etc.
In spring/summer, buy used equipment people need during winter. Sell or rent out summer stuff.
Examples: winter tires, skiing equipment, fuel for heating, christmas decorations, etc.
Obviously only buy things below market price, so your downside is limited. Of course, all of this takes time and patience, but it gives you more control than investing in a stock or crypto. This is an investment in tangible goods.
Thanks for your response!People underestimate the utility of having cash on hand. Its nice to not be stuck living on the edge is something goes south.
If you have them in Europe, I'd recommend leaving whatever safety net you build in a high yield savings account at a reputable bank. I'm not sure what rates they offer where you are, but in the U.S I'm getting over 4% a month which isn't too bad for no risk.
Thanks for you response!Some cash for safety then rest I would give to stock: VWCE, S&P500 (index funds) and a little bit in Cloudflare my favourite company.
Thanks for your response!Start a business, then invest in it. Investing $2k a month into anything else equates to basically 0. Only a well executed business could give you 1000%+ returns in a few years.
Thanks for your reply!If you have any parasitic debt I would pay that off first. It buys your time back. You are time rich now so don’t waste it.
In the fastlane book they talk a lot about question you asked. Investing in stock or cryptos is not what fastlaners do to get rich. Once they have a fat stack they use the markets to stay rich OR they use the markets for liquidity to IPO.
Fastlaners see a pile of cash as freedom, they invest it in business assets that they can grow and sell later during a liquidity event. That cash you have could buy a home, could eliminate parasitic debt, and even possibly prevent you from having free time getting converted to indentured time.
Some ideas to think about:
1. Eliminate parasitic debt
2. Put in a money market ( currently 5%) until you find an asset to invest in you can grow
3. Buy a home for cash
If you have not read all the way through fastlane book try to finish it; if you read fastlane book re-read. They talk a lot about this stuff.
All good haha, I was struck by the 4% a month.My bad I mistyped. Its 4% a year that I'm getting, not 4% a month.
9.95% a year is an amazing return for a regular savings account, although it's actually such a good return its somewhat suspicious. I'd make sure that bank is legit.
Thanks for your reply!
I'm fortunate enough to not have any debt at the moment.
You make some great points! I would love to purchase real estate as an investment, however I would need a substantial amount of capital to buy something for cash. I did the math, and it would take me almost 3 years to save up enough to buy a crappy apartment in Poland.
I do like the idea of putting the money into the market until I can find a better solution for it, at least it will be better than having it sit around and do nothing.
I have not finished MJ's books just yet, I am still reading through them.
Thanks again for your input
Thanks for your response!
I have been burnt from "investing" in crypto coins too. I learnt my lesson.
I wouldn't want to do anything too risky with the money, and if I was to invest in the cryptocurrency market I would buy some BTC or ETH when it dips, and obviously I wouldn't go 100% in on it.
I think I have pretty much capped my education investment for now, here is a list of the things I am doing to further my skills:
1) College.
2) I am doing a course that is relevant to my industry that I work in (takes about 6 months).
3) Ever since I got my driver's license I have always wanted more, so I am doing my truck licenses too.
I don't want to start another course, or jump into anything else for the time being as what I have already is taking up a lot of my time. But I 100% agree with you that investing in yourself is something worthwhile.
Yup. I had left $2.98 cents in my American Expresss account and left it for an entire year. You would see interest payments. A penny, was being added, every month. I was like oh? This is cool. So doing the math.Start a business, then invest in it. Investing $2k a month into anything else equates to basically 0. Only a well executed business could give you 1000%+ returns in a few years.
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