This is actually what causes stock market crashes because of the anti-saving effects of inflation, people all flood into the stock market to protect their wealth from it, which simply means the stock market is inflated. Everyone rushing to the stock market is called a bubble, and bubbles always burst and everyone loses their money again.
But there is a way out; precious metals. Buy gold and silver. I don't mean gold and silver stock options I mean actual gold and silver that you can hold in your hand (and more appropriately keep in a home safe). Gold and silver always do well in financial hard times. They have been the money of choice for 5,000 years they are not going anywhere.
I'd say right now gold is maybe slightly over valued, but silver is way, way under valued. So start buying silver. Bullion, rounds, bars, whatever you prefer its all about the ounces more is better.
The "experts" say to have 6 months of living expenses in the bank. If you are not there yet, keep saving.
In the meantime, spend an hour a day on Yahoo Finance. Read the articles. Follow the links. In 30 days you will know more than 90% of the investors out there.
Study how Warren Buffett does it. Use him as your mentor, and you probably won't go wrong. In a nutshell, Buffett buys (high) quality and holds for decades.
Life is pretty simple: Get a good education. Get a good job. Learn to live on less than you earn. Invest wisely. Retire wealthy.
Good Luck!
Your father needs to be paying you as an employee. {Read up on the laws.} [Then you would not need to set aside anything for taxes.]
If you are living at home, you should be banking 50% of your income. You do not yet have enough to "invest." Remember, investments can go downhill, too.
Investment is the gambling too so if you are 18 then you need to experience a lot in the business field .So my suggestion is ,keep it continue , saving, until you grab the reasonable investment idea .
Hello, I'm 18 and just graduate high school. I currently work for my dad in construction and plan on going to a trade school in the near future. My parents have already said they will pay for it so I don't have to worry about that. I took an economics class in high school, so I know how important it is to save AND to not just let that money sit there, but invest it. Right now, I put 30% of what I make in the bank for when I have to pay taxes. And I put an additional 20% in for savings. Is this realistic? Should I be putting away half of what I earn or is this not really possible to continue for long? And how can an 18 year old like me invest my money wisely? All banks, especially in my town have awful interest rates for accounts, CDs, etc. and I'm not really wanting to put my money into the stock market. Thanks for all who reply!
