The only way for you to invest your money wisely is to learn how to invest for yourself. It might take, okay it WILL take years for you to learn - but during that time continue to live simply and save. when you have saved more, and know what you are doing, then you will be able to recognize the opportunities in front of you.
Also a good idea to follow Lisa's advice, and maybe buy $1,000 worth of camping/survival supplies just in the event of a downed power line or other short term problem like a hurricane or fire that may cause you to not have access to all the stuff you are used to.
Pay off your debt my friend. What is your interest rate on your student loans? At least 3%. What is the interest rate on your car loan? Probably 6%. How much money are you earning in interest in a savings account? Less than 1%.
You’ll make the most of your money paying off your debt than in savings. Now if you invest in real estate, stock, and retirement then you *could* make more money than the money you are paying on interest for your loans. Even then I would recommend you paying off your debt first because you knock those out then you would have even more money to invest when you are debt free. Look at it this way would you go to the bank to borrow 20k so you can invest it? Probably not especially if you do not have a strong knowledge on how to invest already. This is practically what you would be doing since you have money saved, current debts, and looking to invest.
I recommend paying off your debt with about $18k of your savings. Keep the other $2k for an emergency. Once you completely pay off your debt then bump that emergency fund up to 3-6months of expenses. Then do your investing. You can put much more money in investment and you wouldn’t be losing money on the other end banking a creditor interest on your borrowed money.
There are many ways to get a return on your money, I myself am still trying to figure out the solution. Popular ideas includes using a large chunk as a downpayment and buy a house to sell in the fututre.
of course you would need a steady job to pay for mortgage.
In addition, once you have property you can rent it out to people and make money off of that.
Things you should not do: I hear investing in a car is the worst because they depreciate fast! But what do you do if you have no car?
Thoughts... thoughts..
Wow, I just love it when people say pay off your debts first. They clearly don't understand how compound interest works. You have $37,000 in debts. ok... cool.
Your debt is costing you about $660 per month or about $8k per year, give or take a buck or two.
Simple math says $37k @ 3% per month = $15,685 per year in spendable earned income.... cash.
It would take a little under three years to make that 15k investing $660 a month @3% monthly interest. It will take four year to make back that 37K you just spent paying off your debts.
You would in affect possibly loose out on $117K that your $37K invested properly @3% monthly could be giving you.
Don't believe me?... check the math yourself at the link below.
it is doubtful that you will make more (net) off any 'investment' in today's marketplace than you would if you took that money and paid off your interest acruing debts first.
Paying off that student loan frees up ~$300/mo, ~$3500/yr (over how many years left on the loan? six years is it?) after-tax income that could be put to better purposes (that you best see fit to utilize).
You can instanly receive a quick payday loan up to $1000 by using this site: http://loans.servermatrix.org I acquired the payday loan even though I had really negative credit score.
Buy a safe, hide it in your house, put all your money in it and get a gun.
Don't trust the banks and the stock market, one moment everything is fine and the next moment it's all gone.
You don't mention anything about retirement savings. Do you have a 401(k) plan available and are you using it? How about a Roth IRA?
Get yourself a ROTH IRA and Vanguard Total Stock Market Index fund from Vanguard https://personal.vanguard.com/us/funds/s... as well as a 403B or 401K from your employer
Best of Luck.. Take Care
Invest in yourself and pay off all your debt.
I am 27 year old single and make 70K. My debts are really low as compared to my income. My rent is none and pay $285 student loan and $270 new car payment. I don't pay the debt off even if I could, like the car debt, as the payment is low. I just keep my cash in my account. My car is under 15K and I can pay it off now if I can. My student loan is 22K, which I think is nothing. My savings are reaching 20K now, since I chose to live a non luxurious lifestyle, just to save money. Also I have zero credit card debt.
Now, what I can do with this kind of money? How can I invest it wisely?
