How to invest $1200?

[Adone]

Within a few days, I will receive €915 ($1215) as a prize for my previous year's high school diploma. I'd like to use this opportunity as a starting point for investing, although I'm aware it's a really small amount of money to invest.

I remember reading somewhere that the form of investment that can be more remunerative for a low amount of money is FOREX trading, is that true? Should I start studying something about it or would it be better to concentrate on something else?

Give some suggestion guys!

 

[Vulpine]

If I did the math right, a 10 year certificate at 5% will be worth $1954.67 when mature at 10 years.

I say throw it in there and forget about it. And, chances are, for a 10 year, you could probably get upwards of 6%.

It's just one of many ways.

Edit... my bad, I did the math on $1200....

$1979.10

PS. There are building CD's that sort of function like a savings accounts (you can add to them) but with better percentages and you can't take out without being penalized. I'd say start one of those with that lump and add to it over a long period.

 

[Adone]

If I did the math right, a 10 year certificate at 5% will be worth $1954.67 when mature at 10 years.

I say throw it in there and forget about it. And, chances are, for a 10 year, you could probably get upwards of 6%.

It's just one of many ways.

Edit... my bad, I did the math on $1200....

$1979.10

PS. There are building CD's that sort of function like a savings accounts (you can add to them) but with better percentages and you can't take out without being penalized. I'd say start one of those with that lump and add to it over a long period.

I'm talking about investments that include some sort of risk and, of course, remuneration.

 

[Francisco d'Anconia]

I'm talking about investments that include some sort of risk and, of course, remuneration.

I bank just told me about a CD that they had which was close to 5% but the funds would only be tied up for 5 months so check with some of your local financial institutions.

There's still other investments with slightly higher returns out there though. I'd focus on something with a standard compound interest rate and put away enough that you could just leave alone and let it work for you.

 

[backbreaker]

creditboards.net (or.com)

there are tons of high interest rate banks to park your money.

 

[Vulpine]

I'm talking about investments that include some sort of risk and, of course, remuneration.

Oh, I see.


In that case, don't waste your time.

Put it all on "21, Red".

If you don't want THAT MUCH risk, don't bet inside, put it all on Red/Black.

 

[azanon]

Within a few days, I will receive €915 ($1215) as a prize for my previous year's high school diploma. I'd like to use this opportunity as a starting point for investing, although I'm aware it's a really small amount of money to invest.

I remember reading somewhere that the form of investment that can be more remunerative for a low amount of money is FOREX trading, is that true? Should I start studying something about it or would it be better to concentrate on something else?

Give some suggestion guys!

My advice to you, young fellow, is to not worry so much about "investing" at this stage of your life. If you're a high-school graduate, I presume a likely next step is higher education at college or for some associate degree. At this state of your life, you are going to have a lot of large expenses and always be short on income. That being said, you need to keep it in something liquid and "safe". I recommend a mutual fund, money market account with check-writing privaledges from any number of mutual fund companies out there (not a local bank). Try vanguard, fidelity, or american century.

Save the stock/bond investing for when you're fully educated, have your first career job, and have some baseline stability.

 

[Giovanni Casanova]

Oh, I see.


In that case, don't waste your time.

Put it all on "21, Red".

If you don't want THAT MUCH risk, don't bet inside, put it all on Red/Black.

Or give it to me, I'll take it to the poker tables, triple your money, and take a 10% cut.

 

[Vulpine]

Or give it to me, I'll take it to the poker tables, triple your money, and take a 10% cut.

Nope.

Your method isn't enough risk, and would take too long.

He should invest in $1215 worth of scratch-off lottery tickets.

 

[sparky0000]

CD rates vary by country. Asking advice and giving advice on message boards about money is a sure sign of stupidity.

 

[Vulpine]

CD rates vary by country. Asking advice and giving advice on message boards about money is a sure sign of stupidity.

Erhem.

That's great advice, thanks for giving it.

 

[RedPill]

If you lived in the US, I'd say start a Roth IRA using some sort of growth vehicle, but I'm not sure what the rules are where you live. Think long term, and use this as an opportunity to begin creating wealth for your future.

 

[Francisco d'Anconia]

Erhem.

That's great advice, thanks for giving it.

:crackup:

 

[Adone]

My advice to you, young fellow, is to not worry so much about "investing" at this stage of your life. If you're a high-school graduate, I presume a likely next step is higher education at college or for some associate degree. At this state of your life, you are going to have a lot of large expenses and always be short on income. That being said, you need to keep it in something liquid and "safe". I recommend a mutual fund, money market account with check-writing privaledges from any number of mutual fund companies out there (not a local bank). Try vanguard, fidelity, or american century.

Save the stock/bond investing for when you're fully educated, have your first career job, and have some baseline stability.

Thanks, this is one of the few intelligent answers I've gotten so far, maybe some people don't understand that sarcasm is not a sign of intelligence when done in an online community to the "expenses" of someone who admits being ignorant about the topic, thus asks for help. But to each its own.
However, I am in University, but I live with my parents and I have really no large expenses, since they pay for food, shelter and other things. That's why I'd rather learn how to invest them (even risking to losing all of them) in order to gain some experience that will be useful in the future.

Think long term, and use this as an opportunity to begin creating wealth for your future.

That's what I want to do, but I'd like some input about how to do it

 

[Zonder]

Within a few days, I will receive €915 ($1215) as a prize for my previous year's high school diploma. I'd like to use this opportunity as a starting point for investing, although I'm aware it's a really small amount of money to invest.

I remember reading somewhere that the form of investment that can be more remunerative for a low amount of money is FOREX trading, is that true? Should I start studying something about it or would it be better to concentrate on something else?

Give some suggestion guys!

You can invest in S&P 500. Their commission is a bit too high so you may want to find one with the same portfolio except lower commission. It's pretty safe and the economy is bouncing back. The diversification should shield you from any unforceen accidents. You'll only lose if the whole economy takes a dip, and then you'll lose no matter what. You can expect about 10-12% with only a little risk. Higher than S&P return is too complex for the non-expert.

The other approach is to invest in "safe" companies that are here to stay such as Coca Cola or Microsoft. You may win a little or you may win more but you sure aren't going to lose.

 

[seagull]

If I had that money lying around, I'd put in the share market. I'd follow the progress of a few companies and then buy some shares in the ones worthwhile.

If risk is not an issue then a spec could be the best way of making a quick profit (although you can obviously lose the money just as easily). Investing/trading in shares is very easy, all you need to do is sign up to one of those online brokers and you can buy and sell shares in real time. I'm still kicking myself when I turned down the opportunity to invest in a mining spec last year at 20 cents per share and now they're worth over $3.00 a share!

 

[Quiksilver]

This is comical... I asked roughly the same question about a month ago. I made $1000 in the stock market, and was asking how to reinvest.

I ended up investing in short term happiness and it was worth every penny.

Dude, its only 1200 quid. When you get a well paying job, you'll be making more than that per week.

You're still young like me, so enjoy it. Spend it on yourself and indulge a little bit. Don't take small amounts of money like that so seriously.

 

[STR8UP]

The first thing you should ever invest in is books and DVD that let you figure out what might suit you and give you a good direction how to get started in whatever catches your eye.

 

[backbreaker]

that is true.

I will sound like a broken record.... books will pay for themselves 100x over.

a good paying job, you'd make that a week, that's nothing. I'm not putting it u for 5 years to get 300 bucks back. I'd rather you take it to a strip club and get a bJ from a good looking woman than that.

Just make sure it's something constructive. gym membership, books, secured credit card, which would be the smartest thing for you to, because you build your credit and you really didn't spend the money, you still have the 1k credit limit

 

[Fluffy]

If I did the math right, a 10 year certificate at 5% will be worth $1954.67 when mature at 10 years.

I say throw it in there and forget about it. And, chances are, for a 10 year, you could probably get upwards of 6%.

It's just one of many ways.

Edit... my bad, I did the math on $1200....

$1979.10

$1200 is too small an amount to make that worthwhile over ten years, its chump change.

Too give an idea of ways you can increase your wealth. This summer(winter in northern hemisphere) I got a job working on a building site and managed to pull 10K, as I live at home most of that is still intact.

Recenectly I was able to buy a car off some sucker who needed to sell quick as he was moving overseas and advertised online. I was able to get the car for about $2700 and the same model was selling up to 4k on the market. It had 1 year rego which is $500 a year here, I was able to on sell it for 3.5 a month later thats a return of almost 30%.

So keep your eye out for opportunities, dont bother locking it up in an account that you cant touch.