where to start?

[MartyParticipant 29]

Hi, I want to start fresh from new year. I wasn’t able to work due to surgery i had, but i’m planning to go back to work after new year. Currently i have about 1000 euros in saving, which is fine as i live with my parents at the moment. I’m quite young (23 to be exact), but the only job i could get is about 1000-1500 euros a month, or work like a slave, long hours and make a little more. I don’t spend much every month, and i could probably save about 500 euros a month without any problem. So my question is, where to put my money? What would you do in my situation?

[Anonymous 42]

Sounds like you’re working with what you have and aren’t wasting any money on stupid things, keep on doing what you’re doing and spend time learning any valuable skills to add to your bag of tricks!

[hmskl’dParticipant 6406]

Credit Unions that are similar to Banks but give members better benefits. As an example, if you start Credit Union checking account and deposit just $50 or more (direct deposit) each month into your account, along with eleven small purchases each month (for any amounts) using Debit Card issued by Credit Union, they will then pay you about 2% interest on your entire account balance up to about $25.000.00.
This is insured to about $250,000.00 just like a Bank .. so it’s actually better interest than you’d likely get on a four or five year CD.
It’s not a real glamourous way to save .. but, for the near term it’s a way to have free Checking Account with interest, a free Debit chip Card for buying things and also getting Certificate of Deposit rates on all your cash without tying up your money.
A fairly good deal for storing your cash month to month … as you investigate other longer term options. Paying off credit card balances each month to avoid charges is the best advice I know. Maxing out deferred retirement plans matched by employers is also recommended if it’s an available option. These two scenarios don’t pertain to all depending on what’s available at certain stages of life.

Along with this if you want a little more spice in your life, you could always Dollar Cost Average about possibly $20 .. whatever careful amount you wish into either stocks or even crypto or precious metals each month. Possibly all of these. That might be $60 per month total that you let ride and don’t overly worry about.
This way if you lose it all in one of those areas, it won’t so severely affect your bottom line and if it takes off you will profit over the years.
When you dollar cost average, you keep putting money in (likely, a fixed amount) no matter what happens to prices or the markets. Over a long periods of time this should balance out to your advantage.
You don’t let emotions force you to sell .. you just keep going with a small manageable amount like a habit of saving .. only put in what you can afford to lose .. both financially and emotionally.
Dollar Cost Averaging is a very old technique that has been around forever .. and over long period .. it does work. Just keep the monthly amounts small enough so you can sleep at night and enjoy. You’ll more than likely make a neat profit over the years .. no matter what happens short or medium term with whatever instrument you choose to invest with .. equities, precious metals or now even possibly tiny amounts into start-up crypto. Remember .. imo, this is long term. Buy it and forget it. I still believe in buy and hold …. no matter what they say.

So, now we’ve reached “tier three” where you have checking account, debit card and decent interest on your balance .. you are dollar cost averaging into some bonds and possibly some physical precious metals like Silver (great time to buy) or even Palladium (which has now skyrocketed high enough to to almost equal the price of gold).
If you decide to be traditional and invest in mutual funds .. watch the fees. They really can add up over time.

Yet, that time arrives when you still have that nagging urge to go for some riskier stuff .. even though the little voice is saying you are a ‘Buy and Hold Guy’ who knows this system should pay off in the end.
How do you quench that “Vegas Urge” to gamble in high-risk contemporary stuff and possibly get higher returns .. or just as easily lose it all … overnight.

Remember the old adage .. “the Greater the Risk, the Greater the Possible Reward”

Here’s how I do it with a technique I call “Low Risk; actually No Risk, Risky Investing” .. the only risk is disrupting a working long term path. You must decide if it’s worth tampering with a working strategy. The opportunity cost of going risky is small .. but it is there. However, here it is ..

You look over your investments over the past year or two years or more .. you find one that has made a profit and you really would like to cash in. You are a long term investor .. but, one just jumps out at you as having made some money and you would like to explore other areas. If you must go risky .. you can cash out of one item. It’s not a large amount of money. Ok, you cash that one investment in and after taxes and two percent (the amount you would have made in the Credit Union savings) .. you invest “only” the residual profit into something “very risky”.

Thus .. the term “Risk with No Risk” .. you still have the original amount you invested long ago, you have two percent which is what you would have made in savings .. and you are only committing the excess manageable amount to the new venture. If it works out “you might make out like a bandit” .. if you loose it all .. just consider whats left as the amount you would have made safely. I still consider this a type of Buy and Hold .. but a riskier tier. Just because you invest, say $200 into a start-up new name product .. you can still hold it for years .. no matter where it goes. It’s just a riskier path. Either way, you get that gambling fever ..out of your system ..and you have basically all your initial money remaining .. no matter what happens to your high risk tier.

I’ve had some interesting debates with stackers who vigorously disagree with my new avenue of interest and investing. I’m now into authenticated autographs of ‘well know’ deceased sports figures and cinema actors. I’ve collected autographs since I was a kid and the values of well known celebrity signers have only gone up. I personally think the profit potential is huge if approached in the right way .. given the growing interest and finite supply of authentic collectibles. The argument is that in times of financial turmoil .. these items will be of little value. I tend to disagree, and feel that like fine art .. they will be a form of wealth preservation in and among themselves .. during difficult times .. more than ever. People will not abandon collectibles during a severe downturn .. collectibles are finite and valuable .. if they are real. Let’s agree that a Babe Ruth or Mickey Mantle .. both of which are still amazingly affordable .. encapsulated, real autographs represent about fifteen or twenty seconds of that person’s life. That is priceless .. absolutely priceless, both now, and in the long term. What could be more valuable than that? During a recession or depression .. art, collectibles and all types of coinage … including precious metals all will represent a store of value of a tangible asset.
My latest interest is authenticated small (still, amazingly affordable .. it’s a buyers market) gold coinage from sunken ships. Holding something recovered from a vintage disastrous shipwreck along the rocky shoal .. even traditional investors must admit .. now, how cool is that!? Slabbed and graded and .. real. These types of valuables, or .. as some look down at them and refer to them as .. alternative investments. Whether you prefer stacking bullion and rounds, or, believe as I do, in the added numismatic value …. they will still be around and largely sought after by collectors .. for all time, niche or not, there will be a market for these items and the prices will only rise over time.

Update: there is a market for memorabilia

… since I posted this entry a few minutes ago .. I was bidding on an old black & white photograph of a Motown Music Group from the 1960’s at an antique auction house .. this is just a handled vintage photo in fairly used shape with some noticeable creases and imperfections. It’s sized about 7×9 and has lots of marks and pen and pencil writing on the reverse side. I hoped to buy this item for possibly fifty dollars or less …

I dropped out of the bidding at $100.00 and it was sold for just under $500.00 …. even I, who preach this stuff, can’t believe how high it eventually went! .. these are not alternative investments. They are as real as anything out there.

[MarketWatcherParticipant]

hmskl’d wrote:

Credit Unions that are similar to Banks but give members better benefits. As an example, if you start Credit Union checking account and deposit just $50 or more (direct deposit) each month into your account, along with eleven small purchases each month (for any amounts) using Debit Card issued by Credit Union, they will then pay you about 2% interest on your entire account balance up to about $25.000.00.
This is insured to about $250,000.00 just like a Bank .. so it’s actually better interest than you’d likely get on a four or five year CD.
It’s not a real glamourous way to save .. but, for the near term it’s a way to have free Checking Account with interest, a free Debit chip Card for buying things and also getting Certificate of Deposit rates on all your cash without tying up your money.
A fairly good deal for storing your cash month to month … as you investigate other longer term options.
Along with this if you want a little more spice in your life, you could always Dollar Cost Average about possibly $20 .. whatever careful amount you wish into either stocks or even crypto or precious metals each month. Possibly all of these. That might be $60 per month total that you let ride and don’t overly worry about.
This way if you lose it all in one of those areas, it won’t so severely affect your bottom line and if it takes off you will profit over the years.
When you dollar cost average, you keep putting money in (likely, a fixed amount) no matter what happens to prices or the markets. Over a long periods of time this should balance out to your advantage.
You don’t let emotions force you to sell .. you just keep going with a small manageable amount like a habit of saving .. only put in what you can afford to lose .. both financially and emotionally.
Dollar Cost Averaging is a very old technique that has been around forever .. and over long period .. it does work. Just keep the monthly amounts small enough so you can sleep at night and enjoy. You’ll more than likely make a neat profit over the years .. no matter what happens short or medium term with whatever instrument you choose to invest with .. equities, precious metals or now even possibly tiny amounts into start-up crypto. Remember .. imo, this is long term. Buy it and forget it. I still believe in buy and hold …. no matter what they say.

^^^This is some great advice^^^

Good job on saving the 1k. Keep going!!

[RomulusParticipant 4667]

You could open a bank account and save up the money until you have enough to get your own place. That’s an important step for a young person, to get on to an independent living arrangement.

How can a woman be expected to be happy with a man who insists on treating her as if she were a perfectly normal human being.

[Anonymous 0]

Romulus wrote:

That’s an important step for a young person, to get on to an independent living arrangement.

I will add this:
When you own or at least are making payments on a home of your own. DO NOT MARRY OR LET A WOMAN STAY IN YOUR HOME FOR LONGER THAN WHAT YOUR LOCAL LAWS INTERPRET AS YOUR HOME BEING JOINT PROPERTY.
If you want to marry or live together make it a prerequisite that she ponies up HALF the value of your mortgage. If she doesn’t, then she has revealed her true intentions.
And her retirement savings or pensions are equal to yours. Then, when you get divorced the raping is not so bad. She will have as much to lose as you do.
Sound harsh?? Cynical?? Too bad!! Women asked for it.
151 laws in Canada favouring women in divorce cases made it this way. Women made it this way.
Rent a vagina if you want. You get a piece and after she leaves there is peace.
I have said enuff.

[Author]

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