Need some more investing tips?

Question

I'm 18 andI make roughly $1300 /month and I get roughly $300 every 2 or 3 months. I invest already $25 into a money market fund per paycheque and I basically save $50 a month. But I really want to be having more by the summer. I am very frugal. So any other tips will help me out.

Answer 1

invest in the stock market and mutual funds.

Answer 2

Assuming you're investing for a long-term goal (retirement, college when the child is still under 10, etc.), I think you're making a wise choice investing in stocks. Historically, over long time periods, stocks have had the highest returns of any asset class. They do move up and down, though, so you probably don't want money in stocks that you will need in the next couple years - just in case the market dives during that couple years. Many of the books suggested in other answers are good, but a lot of those are more useful if you intend to pick individual stocks yourself. Personally, I think that new investors and those with under $25,000 to invest are better off putting their money in a mutual fund or exchange-traded fund (ETF) that tracks one of the major indexes (e.g. S&P 500, Mid-Cap 400, Russell 2000). Buying stock in just one or two companies is much more risky than buying stock in a whole bunch of companies (which is what the mutual funds and ETFs do) because if that one company hits a rough patch, you can lose a lot of your investment. If your money is spread across hundreds of stocks, one or two going bad won't have much impact, Historically, smaller company stocks have done slightly better than larger company stocks, so my personal preference would be to buy a "small company" mutual fund from American Century, Fidelity, T. Rowe Price, Vanguard, etc. or put your money into the ETF with ticker symbol IWM. ETFs are purchased like stocks through a stock broker. If you go that way, be sure to use a discount broker like TDAmeritrade, Scottrade, E*Trade, etc. The "full service" brokers like Merrill Lynch, Edward Jones, etc. charge MUCH higher commissions for trades, which eats into your earnings. Also, I'd ignore that aid4families thing...that keeps popping up in lots of answers to investment questions. I looked at that website and it sure looks like a scam to me. No legitimate investment can provide returns like that. And looking at the answerer's profile, it appears that she's posting the same thing for nearly every question she answers.

Answer 3

If you need the money for the summer you probably shouldn't invest it in stocks, it's just too risky for that short of a time frame, you could end up with a significant loss. For money that you will need in the short term a money market is great. If you can invest the money for a few years or more then go for stocks or stock mutual funds.

Answer 4

You're not "investing" in a money market. You're saving though and that's good. At your age the best thing you could do for yourself is to learn about the stock market. Look into broad based index funds. You can really make your money grow. Take the time to learn and you can do great for yourself. Don't do anything until you understand it and call your own shots. It's good to see a young person interested in their finances. You're no dreamer. You should do very well for yourself.

Answer 5

Wow! Go to College and Invest in a degree. Invest in Real Estate Eventually....you are on your way!

Answer 6

Research IPO's before they come out. Find certain one's that are worthy of investing in. They often start very low and jump up quickly.

Answer 7

hi, i would start with good gpt sites.. (get paid to) it's easy and can be fun on the forums..i'll list my top site and two others that i make about 1000 a month from them put together.

http://www.*************/index.php?ref=73656

http://www.swatcash.com/866

http://www.treasuretrooper.com/148534

hope to see you there soon. this isn't spam either..it's real...so anyone who thinks it's fake..go ahead and take a look at the proof of payment on the forums... :)