What Do I Do With This Money???

[Robertson]

Hello everyone!

I'm looking for some advice regarding my current situation.

I'm almost 20 years old working a normal job. With all my bills being paid, I can afford to put away around €2,000 each month.

It would be a shame to leave that money in the bank for it to lose it's value over time so I am looking for some alternatives.

These are my ideas so far:
- Cryptocurrency
- Stocks
- Investment firms

Keep in mind that I am simultaneously working on starting a business whilst being employed so I wouldn't be able to invest in something that would require much of my time.

I look forward to reading your replies, thanks!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[harumi]

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, ETFs, government bonds.

 

[Robertson]

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 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!

 

[cornishpasty]

why not invest it into your business?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Robertson]

why not invest it into your business?

Thanks for you response!

The short answer is: I don't have one.

I'm still in the baby steps of my journey and until I figure out what I want to pursue I would like to put this excess money to good use.

 

[Iron Wolf]

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

 

[Robertson]

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!

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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Jobless]

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.

 

[Tubs]

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!

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.

 

[datagod]

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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Jon822]

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.

 

[Robertson]

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!

This is a fantastic idea! I might just go ahead and do this.

 

[Robertson]

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 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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Robertson]

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 you response!

The only issue is I don't think my €2,000 deposit every month will make much of a different. It would be a different story if I had a deposit of €20,000 because then it would make me some money I would notice in my bank account.

Maybe I'm naive but I wouldn't want to put my money anywhere where I won't give me atleast 5% a month.

 

[Robertson]

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 response!

I agree with you 100% on this. However I'm only beginning mu journey and until I come up with a business idea I can start I'm stuck with the money.

 

[chazwazzer]

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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Robertson]

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.

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

 

[Tubs]

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.

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.

 

[Robertson]

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.

All good haha, I was struck by the 4% a month.

The bank that offered 9.95% wasn't the most trustworthy, apparently they are based in Stockholm, Sweden, and have been operating since the 1700s. The guy over the phone was suspicious saying that they only deal with individuals with a high net worth, etc.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[chazwazzer]

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

The book talks about your exact situation. I hope you finish it before deploying your capital.

Having a pile of money is not a skill. Deploying it efficiently is a skill. Investing is very personalized but general principle the book talks about is that if you are working for a paycheck still it’s silly to invest in real estate or stocks because you have no control over the asset. Your home should not be considered a real estate investment according to the book.

Mediocrity uses the stock markets to get rich (book talks about this extensively). You are not mediocre!

Your aim should be to invest in assets with unlimited controllable leverage.

The stock market and real estate only offer the opposite which is limited uncontrollable leverage.

 

[Iron Wolf]

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.

When you mean with "capped your education" that you cant do more stuff right now, fine.

If not, then -> i mean you are 20, i didnt knew shit with 20. 0 nada, every year i think how much i developed since last year. You can never ever learn everything, there is always something to learn based on your needs.

 

[ZackerySprague]

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.

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.

If I had a principal of $1,500,000 making 4% returns. I would be able to make the same hourly wage rate of $32 dollars an hour or $66k per year. Power of compound interest at Scale.

I'd be happy with that, no boss, no performance improvement plans, no layoffs, no mergers, no interviews, video calls, no pandemics, not having to choose between your health or job.

Of course though that would be if your yield stayed the same, but I wouldn't let it stay in the savings account. I'd placed in a brokerage account at Charles Swchab.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.