I've started saving, now what's the best investment?

[WORKEROUTER]

Here's the deal.

I've been working a lot and trying to save as much as possible. Of course, as I'm a student, I don't make a great deal of money, but am still trying to save at least a $100 per month.

What should be the FIRST thing I should do with this money?

Right now, my credit SUCKS. I was denied even a GAP card.

It's a combination of my age (19), my loan-income ratio, and a bad mark from an Express acount I opened last year.

Anyway, what are some ideas?

 

[Bible_Belt]

Pay off your debt, but still keep some cash for emergencies. Building your credit is probably the best investment you can make right now. Try to get the express account settled if you show an outstanding balance.

 

[spider_007]

^ dito ^

 

[Tomatoes]

I deal with credit checks everyday.

Have a healthy bank account thats always in the black. Make sure all your direct debits and loan payments are on time and start saving in a high investment account of £100 a month. When you have enough to pay off your loan. Withdrawl it out and pay it off.

Debt is always the first thing you should clear.

I am currently working on clearing my debt of £4000 spent on cars.

 

[A-Unit]

Re:

I get this quite often. And it doesn't shock me. There's no such thing as "the Best investment." Picking investments, like picking women, is a function of Time, Position, Situation, Goals, Available Funds, and Experience.

Back in the 90's, no investment as besting the stock market. You could put in $100, in a year it was worth $1,000 or more.

After they dropped rates so low, borrowing for homes and flipping became profitable to ALL WALKS OF LIFE, so R/E was unmatched in its profits. Now, according Realtors, a glut of projects on the market will force home prices downward in many of the faster moving parts of the country.

Even if you look at futures, you'll see that Gold and Oil have moved quite substantially in recent years, and will continue to move.

But then the question is...is this long-term funds or short-term? Will you personally attend to the management of this investment or would you prefer to let someone else do it? What's the purpose of this money?

If you have NO cash in the bank, from a Financial Planning Perspective, that should be Goal #1. Save a portion to the bank account. Then save another portion to some other near-term goal. Perhaps it is learning to make money in stocks, currencies, futures, R/E, etc. Save some money toward that for books, for a program, and then to actually use for the investing itself.

If you don't off the top of your head know ANYTHING about what you're investing in and why, don't invest. Don't go blindly into anything where you can loose your hardearned dough.

Think LONG-TERM. What investments would you like to specialize in over the long-run? There will always be market cycles, and within those market cycles PRO's still make money. Amateurs don't. Right now, it'd be best to save to money markets or a credit union, so you have a rainy day fund. If you don't know yet, then don't invest. Saving for now is smart. But be looking for opportunities, too.

Also, finding the BEST investment is a matter of personality and character, too. R/E is a people business. The stock market and similar non paper assets are not a people business. That plays a factor, too. You can either get over having to deal with people, OR, just not choose that investing field. It's your choice. You can also invest in R/E via REITS and the stock market and exchange traded funds. Though you won't near the benefits found by direction ownership of actual property, you can still get in on the R/E market nonetheless.



A-Unit