I have saved money

[Zion]

Any advice or insights for options of how to use a big sum of saved money? I have a couple thousand saved up & I'm weighing my options for how to properly invest/capitalize on it. Thanks for any help

[Raptorsin7]

@Zion What do you plan on doing career wise?

[supremeyingyang]

You should have at the bare minimum 12 Months wort of Money in your Bankaccount. Subtract that amount from your savings. The Rest is ready to invest.

First rule of investing (in yourself, stocks, bitcoin, etfs...): Do NOT invest into what you don't understand.

My Advice is to read a few books and to not do any quick moves because someone tells you "That's the chance to make big buck!" - see for yourself instead

regards

Edited April 28, 2021 by supremeyingyang

[ThomasMiller]

You have several options: a bank deposit, bonds, or company shares. If we talk about the long-term perspective, then I prefer stocks of companies, if the perspective is one year or less, then a deposit is the best.
Happy investment.

[Zion]

@supremeyingyang Thank you

[Roy]

General rule; if you aren't absolutely sure what you want to invest or spend it on, don't touch it. 

Just because it's sitting there doesn't mean you have to use it. A lot of young people (you look very young from your pic) make the mistake of impulsively buying stuff like iPhones and clothes etc. and rationalize it because they just "have" the money. Of course enjoy yourself here and there, but don't be stupid, stupid 

Simple ideas are using it for basic practical stuff that helps you get ahead. For example getting a used car; once you have a vehicle to move yourself around that opens up a ton of independence and the amount of potential jobs you can reach without relying on others, walking/biking (time consuming), or spotty public transit.

Before you do anything else though the most important thing is having an emergency fund. MINIMUM 2 months of living costs (housing/food) so if anything unforeseen and terrible happens, you are prepared. Literally put this money somewhere and pretend it doesn't exist. People have different emergency funds based on what they need. Personally I have 2K cash in a safe that hasn't been touched since I put it away 4 years ago. I probably never will touch it but it's good to know I always have that security.

You don't ever want to be in a position where you have nothing at all when shit hits the fan, that's the point of an emergency fund.

Edited April 28, 2021 by Roy

[Consept]

Ultimately you want it sitting somewhere and growing, stocks and shares are the best way to do this, but read and research in depth to get your head around it. Don't invest until you really understand it, spend at least 2 months researching. 

Look into doller cost averaging and etfs

[Jacob Morres]

18 hours ago, supremeyingyang said:

First rule of investing (in yourself, stocks, bitcoin, etfs...): Do NOT invest into what you don't understand.

 

i've made this mistake hahaha. i this this could be a life principle too more than just for investing  

[JonasVE12]

On 27-4-2021 at 11:55 PM, Zion said:

Any advice or insights for options of how to use a big sum of saved money? I have a couple thousand saved up & I'm weighing my options for how to properly invest/capitalize on it. Thanks for any help

I love that you say 'invest/capitalize', and not just 'spend'. I guess you would need to work out what your values are and how you can live more in allignment with them and then figure out how the money can help in that proces. If you invest, maybe look into cryptocurrency. I wouldn't invest a couple thousand elsewhere as the potential for a good ROI is way lower. Cryptocurrency in it current stage is still an ideal investment if you pick the right projects. Upside potential is still huge. Of course the volatility is an emotional trigger that can make you lose money if you make desicions based on those emotions, but with some understanding of the dynamics behind these markets, both how they flow cyclically and the fundamental drivers behind price action, you'll come to understand that there are projects that will grow very much in 5 years because of the high fundamental value they will provide to society. Of course the price will go up and down because the cyclical nature of these markets, but you have to think long term and sit on your hands. This is not trading. This is long term investing. The time where cryptocurrencies were speculative assets is long over. Some projects are here to stay and will solve problems in society. And some people will get rich in the proces. 

For example, I invested in Theta some time ago. The concept is decentralised peer-to-peer content delivery that removes much of the bottleneck in the infrastructure of content delivery networks, allows much more efficient data transfer, much cheaper and helps to increase the user experience in the context of video streaming. Current needs in video quality are evolving to 4K streaming, VR, and people with bad internet connection can't watch these streams smoothly. The cost of this for centralised companies is also very high. The problem is only getting worse with the evolving video quality needs. Theta is coming up with a solution for that, but the project is still very early in it's development stages. It already has many partnerships and 3 patents. It is becoming functional. It has a real use-case that solves a big problem. It is still undervalued and so you can expect the price to rise in the future. 

There are many many more projects that are promising and have great use cases. Gotta do your own research. I wouldn't invest in something you don't understand out of fear of missing out. But if you are young and don't have many responsibilities, who cares losing a couple thousands. I initally invested 10K, and I would not have cared if I lost it all. I will probably hold it for some years and then sell. Still DYOR though and make your own decisions. 

And if along the way you find your LP, you could cash some money out and invest in your LP. 

Edited April 29, 2021 by JonasVE12

[Zion]

@JonasVE12 Very insightful, thank you