I am interested in investing in the future. Problem: I don’t have enough money at the moment to make an impact (I don’t think so anyway). So my question is thus: do you have any good ideas insofar as raising capital apart from loans or saving? Thanks.
Get a job?
Since the OP is looking for advice, let’s move this to IMHO.
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Did you not read the part where I wrote ways of making money OTHER then saving? Save your lack of advice for somewhere else please.
I don’t know what you’re looking for if you reject that legitimate advice. But assuming you already have a job, you could get a second one. Or you could spend less.
I figured that having a job is implied in saving. Perhaps I was mistaken…
Good points Dewey.
So you’re looking for free money you don’t have to work for?
I’ll be paying close attention to this thread because that’s like, my fantasy.
Not necessarily free or not having to work for it, but things to put extra income in your pocket besides the traditional get a good career, save, and get loans. Or are those the only paths?
Loans are not a way “to put extra income in your pocket.” (You do realize that lenders generally expect you to pay back the loans, right?)
Become the loaner instead of the loanee?
Pick a few skills you have, find a fun/new/interesting way to use them, crowdfund? (Remember Boogly when you make it big)
If you’re looking to increase the immediate amount that you have to invest, you should max out your 401(k) contribution limit. It’s a tax-deferral scheme, so you will have more funds to invest today as you will save on your income taxes for the current tax year. As well, I’ve heard that 401(k) annual limits do not carry over like RRSPs in Canada, so you should try maxing out your contribution limit every year in order to save the most taxes.
In any case, you said that you don’t have enough currently to make an impact. How much are we talking about exactly? When I started out investing when I turned 18 a few years ago, I only invested amounts of $5,000 or so. If you’re investing in stocks, trading fees are only $10-30 per transaction. If you use that $5,000 or so to buy a stable dividend stock such as Exxon or Wal-Mart, you’ll get at least $120 a year in dividends on your investment, which should be 10-15x the amount you’d get if the money sat in a savings account. How much is the interest rate at your local bank anyways? It’s 1.1%/year here up north.
Well, I am basically at the beginning of my investing venture. This is the first thing that has come up in what is stopping me from investing (this as well as needing more education). Basically I have nothing saved up so far and am looking to get started. The interest rate at my bank is like .01 percent or something.
There’s gambling. I wouldn’t recommend it, though.
For one thing, you could increase the return on your saving by a factor of about 100 with virtually no effort.
So I am not really clear on what your goal is. Do you have an idea for a business of some kind you’d like to start up or do you have an invention you’d like to market? Or are you wishing you could buy stocks and bonds?
Oh yes I would like to know how to make extra money. I think that the only way is to get a second job where I am paid cash in hand (otherwise I get taxed 50%). Obviously I am looking for legitimate options and not drugs or prostitution. Any ideas?
The only “capital funds” types you can get, you already know: loans and savings, unless you include unexpected windfalls. On the right hand of the balance sheet, you have liabilities which include loans (these you owe other people;) and you have equity (which you owe to yourself, so to speak.)
There is of course your recurring income which you plow back to your equity. This may be savings from your job, or income from investing. We already know about your job, so how are your present funds invested?
Really good to know. I didn’t know that these sort of banks existed. Thanks for sharing.
Goal: Get financially free (I can sustain myself with no job needed through assets) and then rich through passive income. I was thinking in particular of stock investing. Starting a business is not off the table though at least in the future, but stock investing seems more my thing. Possibly in the future I will do real estate as well. The main thing however is stocks (at least that’s where I’m looking to go now).
Nor would I unless I got real real good at one of the gambling games to where it was no longer gambling. But as far as right now this is a pretty unlikely way for me to gather consistent capital.
A few ways I know how…
Increase your offense and better your defense.
So, as far as offense: Increase your ability to earn at your job. Get another job (another persons idea on this thread), and possibly get a better education so you can get another job which will earn you money.
As far as defense, find out where your monthly expenses are going. See what you can afford to let go of or alter so you are retaining more money.
Also respect your things, as well as yourself. If you respect your things you will not be spending money repairing them or replacing them. If you take care of yourself you won’t need to spend more money on yourself then necessary.
Frugality is generally good as far as that is concerned.
I don’t fully understand what you are saying. I think you are wondering what my cashflow looks like right now. If so, it’s not looking very well. I am not the best with doing impulse buys. I have a monthly income but it mostly goes out the window every month, there is rent and then basically leisure and what is unexpectedly needed. It generally is at 0 every month. As far as current investments, there is none.