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| .4ngryToasters |
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you would
Registered Member #149
Joined: Sun Feb 12 2006, 01:08AMPosts: 2039 |
Ok so as I understand it, there are a few people who consider themselves pretty handy with money on this forum. Right now I have roughly 3,000 dollars just sitting in a savings account earning about 40 cents interest every year (woopie), and a bunch of savings bonds that just matured (worth about $1000, maybe more, I'd have to check). Usually I dump about $50 into my savings a week, but I feel like I'm missing out on earning more money. My goal is to raise 20,000 within the next 5 years so I can get a pre-owned car. I was wondering what the best way to approach this would be without too much risk. Anyone have some suggestions for the Toast? Edited Mon Apr 07 2008, 07:28PM |
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| drunkirishmafia |
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Registered Member #289
Joined: Sat Jun 10 2006, 05:17AMPosts: 1543 |
first advice...don't buy a new car if you wanna be a money saver, theres really no need. and the best investment advice i can give you is to do research and find a good mutual fund. these will give about anywhere for .3-.12 (might be 3 to 12 correct me if im wrong) mutual funds is when you give your money to someone else to invest for you, and bassically it works. i would settle for somewhere at 6, but if you do enough searching you can find one for a 9% return which would be a verry veryy good deal. also, just another tip (take or or leave it). every paycheck you get, put 10% of that into a savings account. you'll have a million dollars before you retire if you start now.  hope you consider some of this advice
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| Jesus |
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Jesus not HeyZeus
Registered Member #370
Joined: Mon Jul 31 2006, 03:49AMPosts: 332 |
yea definitely don't buy a new car...the depreciation on it as soon as you drive it off the lot is completely ridiculous...I have to agree with DIM on going with a good mutual fund...if the market wasn't so bad right now I would suggest some stocks but with how much the market has been fluctuating lately I wouldn't even consider putting much if any money into stocks...I know myself I have some money that I am looking at maybe putting into an IRA of some sort idk quite yet if anybody has any better suggestion of what to invest around the same as toast besides what I have already said it would be greatly appreciated | ||
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| gLiTch |
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Anal Assassin
Registered Member #455
Joined: Mon Oct 09 2006, 04:58AMPosts: 3848 |
classic cars. Price never goes down. Only goes up. Resale on these things are awsome. See, if you do your research, and you play smart, then you can earn 2k on the side every 3-4 weeks. Find a car for 3500, thats worth more then 3500. Offer the guy 2500. He wont take it. Keep in touch with him every few days reminding him of your offer. Soon enough he will settle. Then you take the car and roll it. Sell it for 5k. Wait till someone offers you anything... Prolly gonna be 4k... Take 4k. Congratz, you just made 1500. Now that you have 4k... Then you rinse and repeat. When you get a car, clean it up, give it a lil douchin solution. And depending on the car, make sure it starts. Certain cars like old chargers, dusters, roadrunners, cuda's, camaro's, dont need to start. They are worth hell of a lot of money regardless. Now your not going to find cars that easily. It takes patience. Look in local ads, classified ads, online ads that are local...etc. I use craigslist. Best site ever. But its only in selected states. Try penny saver ads, want ads, and shit like that. Hell, even drive around and look for cars. I can find some good deals from people who just have the car sitting in the backyard, JUST visible from the road. Knock on the door and offer them something. Say cash. They will most likely take it. |
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| .4ngryToasters |
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you would
Registered Member #149
Joined: Sun Feb 12 2006, 01:08AM Posts: 2039 |
Ok, I worded my goal wrong. I'm looking to buy a pre-owned car, and yes I know about the depreciation, but I am in need of a newer car within the next 5 years (I am thinking along the lines of a BMW M class that I can supe up). btw DIM, I didn't understand half of what you were talking about. Please keep it in laymans terms. |
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| O_Mega |
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Inconsistant Ownage Device
Registered Member #59
Joined: Sat Dec 10 2005, 06:12PMPosts: 1058 |
DIM is talking about mutual funds. Mutual funds are a relatively safe, but usually relatively low yield investment vehicle. An investment vehicle is simply the method you decide to use to increase your wealth, be it stocks, bonds, mutual funds, index funds, gold, commodities, ect. A typical mutual fund works like this: You pick a mutual fund that focuses on one sector, could be technology, biotech, international real estate, what ever, and put in say, $5000. Your money goes into a big pot with a bunch of other investors. A professsional mutual fund manager then uses your money to buy a variety of different stocks in that market. Say you pick technology, you could end up with stocks in sony, microsoft, apple, cisco, intel, ect. You money is split into many different stocks, which is callled diversification. This way, even if one stock plummets, you still have many others. Only draw backs being, they tend to be low return, and if you are using a standard mutual fund like DIM is talking about ,you have to pay a decent amount of money to the fund manager. Many mutual funds also have a high minimum deposit. If you are going the mutual fund route look into EFT's or Index funds. Couple other things, like DIM said, set up at automatic deposit for your paychecks. Doesnt have to be 10%, if you are frugal and can afford more, do it. I have mine set up so that it deposits $25 a week into my savings account. Doesnt sound like much but every couple weeks ill see how my checking account is doing and drop a couple extra hundred in there. All that money adds up fast. Learn about compound interest. Ditch that savings account. Look around for high yield savings accounts, personally im using and Orange online savings account, not the highest interest, at around 3%, but great service and really easy to use. (If you want I can give you a refferal and get you an extra $25 ) They also offer high interest checking accounts, so you can make money off that money too. Dont be scared of stocks just because the market is going down, you can make money just as easily in a falling market as a rising one. Prices are low and stocks are cheap, and chances are they will go back up again. On another note, sell things. Sell anything you dont need, and then find things. I dont know where you live but here you can get money for recycling all sorts of things, from tires to aluminium. If you feel like being slightly less legal, steal ladders and turn them in, take catylictic converters off wrecked cars, see what you can find in construction yards, new show houses, ect. If there is a hobby or something you know a lot about, like say...pool, or collectable, buy them cheap on Ebay and resell them. Ok, enough from me....lol |
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| drunkirishmafia |
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Registered Member #289
Joined: Sat Jun 10 2006, 05:17AM Posts: 1543 |
okay okay... any investment you do gives your interest. just like your money in the bank. its collecting interest right now. like i said, a mutual fund is where you give your money to someone (along with other people's money and it is then invested) and once you put your money away in a mutual fund. it will collect interest ( and a shitload more than any bank). Im pretty sure that you can find a 6% return from investing in a mutual fund. Bassically mutual funds are like investing in stock market, except its more reliable. But like i said, you'll probably have to do some research to find out where you should put your money. Also, the 10% of each paycheck adds up in the long run. if you still don't fully understand just xfire me and i'll try to help more |
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| Cha Siew Bao |
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Registered Member #133
Joined: Sat Jan 21 2006, 09:03PMPosts: 198 |
I like to listen to prof Tom Vu [link] -- I believe he's an actual millionaire right now and plays for the wpt out in vegas |
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| NoSkill |
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Sir
Registered Member #457
Joined: Tue Oct 10 2006, 01:13PMPosts: 2628 |
FV - Future Value PV - Present Value t - Time (in years) i - Interest Rate FV = $20,000 PV = $5,000 t = 5 years i = Unkown, lets find it. FV = PV(1+i)^t Solve for i i = (FV/PV)^1/t - 1 i = (4)^.2 - 1 i = .3195 or 32% You're looking for an investment vehicle that can yield 32% a year for 5 years without a lot of risk. Good fucking luck. If you find one let me know. I'd concentrate on a solid 10% average rate of return on a no load, no fee mutual fund and dollar cost average (Invest the same amount every month) $100 into it over the next 5 years. I'm not showing you the math but you'll be at or around $15,000 in 5 years at that rate. Unless you suffer some losses, but that's why you DCA it and buy more with your money at low points and less with your money at high points. Or read a book or take an economics course. Invaluable information. Learn to Earn by Peter Lynch is a great beginners book to start with. Or The Wealthy Barber by David Chilton No math involved in the books, just good how to advice. The math I know cause I'm an engineer so I know all the fancy formulae =) Edited Mon Apr 07 2008, 10:12PM |
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| NoSkill |
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Sir
Registered Member #457
Joined: Tue Oct 10 2006, 01:13PM Posts: 2628 |
Very important. DO NOT BUY INDIVIDUAL STOCKS IF YOU DO NOT KNOW WHAT YOU'RE DOING. Seriously. That could be the quickest way to lose alot of your money. Mutual Funds are run by professionals entrusted to invest billions of dollars. They have just as much interest in their share price rising as you do. Stocks are tough and you HAVE TO diversify. I would never reccommend individual stocks to new investors unless you fully read and understoond Security Anaylsis by Benjamin Graham. Which was the model Warren Buffet based his investment strategies around. |
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