How can I invest the 700 dollars I save every month?
So every month I can save 700$.. However, because I don't know what to do with this money, I just spend it on B.S.. But no more playing.. I want to invest this amount of money.. I know it's little.. that's why im asking here..But is there any advice for me on how to invest such little money??
Public Comments
- T-Bills are insured and steady income.
- you can invest and make a lot of money to help you quit your job, if only you can follow this simple technics .you can visit this site ,i believe you will find it helpful. www.forexmillioniare.com
- It all depends on how long you plan to save it. For less than 1 year a low interest money market may work. For 1-5 years may be good to take small markets risks. For 10 or more years the stock markets will help you beat inflation and get you the best returns. If you want to save for retirement there are lots of options with tax benefits like a roth or traditional IRA. $700 a month isn't little, lots of mutual funds will take automatic deposits with less than this. I would find a personal financial adviser to help you with what is best.
- You should consult your financial analyst. If you are not afraid of risk and have long term goals, it maybe worth opening an online account for yourself (like Scottrade, Ameritrade, etc.) and invest in stocks or mutual funds. These sites offer lots of information on each company so you can do research at your own leisure. Some solid companies to invest in are XOM, JNJ, MSFT, GOOG, GE. The more you diversify among different sectors, the less risk you have of being completely wiped out. For example, back in early 2000 technology sector was beaten so bad that most people who had money invested only in tech stocks, lost a fortune. Depending on you risk tolerance and timing, you can create a portfolio for yourself.
- You should always develop an investment plan, as in what you expect to pay for in 5, 10, 15 years or start saving for retirement. I believe the best option for any young adult with no debt or children is to max fund a Roth IRA. I personally recommend Vanguard as they have one of the lowest expense ratios in the market. I've been investing on my own for 15 years. I protected my investments by being proactive. When everyone was screaming that their portfolios were dropping last year, I had already moved the bulk of my retirement funds into money market accounts in Dec 2007. So did everyone else who listened to my advice. Now they are reinvesting at a weekly rate back into stock funds, thereby dollar-cost averaging their stock-mutual fund holdings. Essentially, set up a Roth IRA (if you meet the requirements), transfer funds to a money market account, then setup an automatic transfer between the mma account and a target retirement fund. The benefit of opening a money market first is that you establish a saftey spot when markets begin to plummet. However, if markets are doing well, the returns on mma accounts start to grow thereby benefiting from compound "interest".
- A sector you should check out is technology.Recently the sector has been doing great. If this is your first time investing make sure to research extensively any company you are interested in. As this will provide you with what you need to make a good decision on which stock you are looking to invest in. Some websites I recommend are: http://www.seekingalpha.com-Has a great team and some great articles http://www.techstocksinvestor.com - Good place to check out if you are interested in technology stock. and http://www.finance.yahoo.com
- You could open up a roth ira with option express or trackdata which are direct brokers and learn how to trade stock options.That way all the money you make will be tax free.That is how i make money.
