How did you save your first $50,000? Any tips for sharing?

Answer 1

I put money into a 401(k), 6% of my salary (it's all I could afford), When I left the company, I rolled it into an IRA with Fidelity ($6,000), and the first 10 years I had it in mutual funds. After 10 years, since I felt comfortable with the market, I started buying and selling stock. Fast forward 20 years, the $6k is now worth over $100k.

Tips: Have your savings taken out of your paycheck or your checking account automatically - you'll learn to live without the extra money because it won't be there for you to see. All major brokerage houses will let you set up an automated direct deposit.

If you don't know the market, just buy one no load mutual fund that mirrors the market (Vanguard has some with very low fees, as does TIAA-CREF).

Put a little money in on a consistent basis - this is called "dollar cost averaging", where sometimes you buy high and sometimes you buy low, but it makes for a very consistent price.

Don't buy stock options or individual stocks until you really understand the market. Don't subscribe to any of those expensive "we'll tell you where to invest" - their "performance" numbers are often based on what they do before they publish to the world (and impact the market). Don't take hot stock tips, or try to time the market.

If you want to invest in stocks, you can go to www.dripinvestor.com, where you can find stocks you can buy where they re-invest the dividends. I bought $250 of Exxon Mobil in 1992, and recently sold it for $6000, no additional money ever put in. Look for stocks with dividends, because even if the principal goes down you'll make money on the dividends every year.

Don't move your money around often - Once a year, check it out, and you can always call the mutual fund company you're with and talk about what you want to do - Don't try to "diversify" unless you have money to spread evenly - For example, after $5,000 is in the Vanguard fund, you can take the next $5,000 and put it in a differnt type of fund (bond, real estate, international).

Don't confuse multiple funds with diversifying. Check the style - large cap, small cap, mid cap, value versus growth. The market favors one kind over another at various times, but if you're in 4 mutual funds all the same style, yo're still banking on the same set of stocks.

In the short run, consider GMAC Demand Notes - they pay 6%, you can pull your money out and write checks on it (if you have the discipline, you should sweep all of your unused money in there before you pay bills, you can make money on the float).

Good luck,

Answer 2

This really depends on your age.

First of all, every teenager should get a part-time job as soon as they can and put the maximum allowable into a ROTH IRA. This is because a ROTH IRA takes your wages that were available to tax and puts them into an account the grows completely tax free. Chances are that a teenager will not be required to pay taxes at all on their wages because they make so little money, SO the money going into the ROTH IRA will not be taxed and the earnings it makes will not be taxed either. That's a win win situation.

For instance, if you put $4,000 into a ROTH IRA from age 15-20, that's $20,000 right there, not to mention any profit that is made in the ROTH IRA, all tax free.

Another good thing about the ROTH IRA is that you can take out your contributions at any time. So, lets say that by age 25 you've contributed $40,000 ($4,000 over 10 years) and you want to purchase a house. You can take out the $40,000 and use it as a downpayment.

When you're older, it's all about control. The majority of Americans are always looking to buy what is just out of reach.

The answer to wealth is to live well within your means. Make sure that you contribute to your employer's 401k plan and any stock options that they offer.

After that, take at least 25% of your net income and save it/invest it .... just don't spend it!

That remaining 75% of your net income is all that you're allowed to spend. That means if you can't afford that big screen tv, tough luck.

I'm only 22, but by using this system I've already saved over $100,000 in various accounts.

Good luck and don't forget to diversify!

Answer 3

I cut 20% of salary and put them in a bank. With interest given by my bank, I had something like $15k at the end of the year. After 2 years I had saved about $50k. I used them to invest in shares. Today the figure had grown although I suffered some knocks in the share market as well.

Answer 4

Stocks.
I did it a little bit at a time with Sharebuilder. (Best price for small dollar investments per month.)

I've only got about 13,000 of my own money in it now.
Pick Companies with good dividends, Good price to sales and decent dividends.
Don't buy more than 20 stocks and keep them all in different sectors.
Nothing appreciates over 5-10 years like the stocks. Especially the dividend payers.
Right now I'm liking utilities with big dividends in growth markets like PNW. (already up 20% this year)
There is a lot more to grow there. Look for where they are building houses.
Utilities can just pass on their expenses in rate hikes in the right envirnoment.

Answer 5

I started young by putting a $100 away a month. Then after a few years I doubled it and then doubled it again and so on.... soon my money was large enough to make money on its own.

I still put money away and will do so probably forever... I am a natural born hoarder and it worked for me. Money does not grow unless YOU add to it so start NOW and hit hard !!

Answer 6

first clear some concept u get money only by rising price is false in falling mkt also give good return 4 it learn future trade also think of commodity mkt study charts on aptistock freeware with buy sell signal do homework & then invest visit link copy paste it

Answer 7

invest on your 401 k plan if you have it available on your job.