Would you spend it?
Would you save it?
Would you invest it?
What would you do?
2007-02-25 08:36:58 · 8 answers · asked by KrittR23 2 in Business & Finance ➔ Personal Finance
It depends on how expensive things are when economy is up and down. But according to Economics, when the stock market isnt doing so well, you can make the best returns. But, you dont know whats good and whats not because companies can die when the economy is bad. So you would go to mutual funds which buy alot of different types of stocks. In this situation, you would select the larger companies that charge the least amount. This way you gain more. Do pick a company that has a good track record in good economy and bad economy.
When economy is bad, gold tends to do really good. This is because people put it into gold when US dollars are doing bad. And precious metals are universal. Every country accepts it as money. Dont listen to the financial advisors or investors telling you that gold goes up because there is a low supply of gold right now. What ever happened to the gold mines? They are everywhere, and you can actually buy some of these mines if you had money. If gold is low, then where? They are still in the mines. If gold is usually around $300 and ounce, and then it jumps to $600 an ounce, dont you think people would start working in their mines? See? And during that time, there will be less mines for sale, or the ones that are for sale go up in price. Just take a search and you will find mines that you can buy.
Bonds are bad because some of them can be junk bonds. And if they are good bonds, they tend to pay low returns. You can put it into a CD from a bank if you get a decent interest rate. Saving it into a bank yields very low returns because sometimes they cannot let others borrow it since everybody is afraid to borrow. With a CD a bank can use it to let others borrow for a long time or expand their banks.
Real estate is good but only when economy is up. When economy is bad, real estate seems to soar. Not long ago, real estate was getting expensive. Did you notice the economy? It has been down since September 11th.
Coins are good but you really have to know what you are doing. So, I wouldnt touch it if you dont know how. And dont go to someone for advice for investing in coins. Alot of times they dont even know what they are doing. Financial advisors get kick backs from the coin stores when they can sell you alot of coins. Even professional coin experts lose money in coins.
Over 90% of people get rich off of something they know or bought. So if you are an expert on something, then go for that if it yields good profits. Otherwise, look for something to buy. I wouldnt leave my money like that because you wont get rich that way. Go for something sure fire if you dont know what you are doing.
My favorite is buying cheap gold coins. The ones that are sold for as close to gold price as possible. You can go to kitco to find out current gold prices.
2007-02-25 08:42:34 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Some of each. Spend: pay tithe, and then if I were in debt, get it paid off in a lump sum. Work a lower one time payment first. Then, see if there was anything I NEEDED, and buy on sale. Save it: at least 10-20% of it. Invest some of it, about 5% of it.The rest, put into savings.
2007-02-25 16:45:00 · answer #2 · answered by SAK 6 · 1⤊ 0⤋
Pay off debt, its costing you, then a home, get it paid off when you buy or the intrest your paying on the mortgage will eat up what the cash left over is earning. Then put the rest in a money market account. Its like a checking account, and accessible like checking. Stock market is just legalized gambling, an the bookies manipulate an lie. Plus you gotta do paperwork an wait for a check.
2007-02-25 21:00:21 · answer #3 · answered by pyledriver 3 · 1⤊ 0⤋
1. 10% to my church (if you don't go to church then your favorite charity.)
2. Pay off all bills besides the house.
3. Save in a money market 3-6 months of expenses (this isn't for investment just for emergencies, car breaks down, furnace goes out, etc.)
(3b. If you don't have a house use for down payment, but we have a house; so we would skip this step.)
4. Start putting 15% of our income in retirement, first maxing out my and my husband's Roth IRA
5. Fund our children's college education
6. Pay down the house.
So to answer your question, all of your questions. Spend, save and invest!
2007-02-25 17:22:35 · answer #4 · answered by mldjay 5 · 1⤊ 1⤋
I. Pay off credit card debt and destroy all but one credit card. Interest rates on credit cards will kill you.
2. Pay off car is interest is over 5%
3. Take $5,000 to play with.
4. Find a good financial planner to help invest the remainder and determine my future plans for the money.
2007-02-25 16:48:33 · answer #5 · answered by Ooh, Ooh pick me 5 · 1⤊ 1⤋
Do you own a home? If not the put some for a down payment and invest the rest.
2007-02-25 16:41:24 · answer #6 · answered by allindotcom@sbcglobal.net 4 · 1⤊ 1⤋
Definitely invest it, mostly in the stock market or real estate.
Spending it is not managing it, and just saving it is not using it to it's potential earnings.
2007-02-25 16:41:39 · answer #7 · answered by zander1331 3 · 1⤊ 2⤋
Im investing at Euro America Index & you should too
http://www.eaindex.com/CMGK2058
2007-02-25 18:36:11 · answer #8 · answered by Anonymous · 1⤊ 1⤋