Spend less than you make.
End of story.
Ask HN: How to save/invest/deal with money?
31–40 of 43 posts
Re: Ask HN: How to save/invest/deal with money?
#32It is an absolutely horrible idea to "invest" the money you have coming into stocks/ETFs. Literally. You make it sound like you are under 25 years old, and the best thing you can come up in terms of using your hard earned money is to (from your perspective) put it in some magic box that will grow your money at X% per year? 1. Contribute whatever you need to contribute to your local pension. 2. Save the rest of your m…
Just for context, I am under 25 and I am in education and as mentioned in the post I have barely any expenses.
The thing is, isn't having the money in the bank an investment too? I just thought if I'm already keeping it there (which is risky although maybe less so) then why not at least try to educate myself about maybe what more I could do with it. I'm already doing the things you mention but I'm purely talking about the leftover money that is just sitting there...
Re: Ask HN: How to save/invest/deal with money?
#33Spend less than you make. End of story.
I do, that's why I made the post.. the difference is just sitting in the bank idle. What am I supposed to do with it now?
Re: Ask HN: How to save/invest/deal with money?
#34Hi,
I also live in Europe. Here some quick suggestions from person who is quite interested in trading and investing:
1. Save few months of cash reserves to have freedom if things goes south.
2. Start reading about investing and ETFs and Indexes.
3. Start invest in small sums in ETFs and or Bonds. There are two ways:
3.1. If you want to transfer and forget, you can try some of the RoboAdvisors, which will buy ETFs/Bonds for you with assigned percentage. I personally use ETFMatic [1] for couple of years without any issues.
3.2. If you want to buy ETFs by yourself, you can open brokerage account. As I read that you are from Europe, we mostly use Degiro [2] or IBKR [3] here. I use IBKR personally. You will be safer with ETFs, rather than single stocks. One of the recommended ETFs, would be VWCE, which Tin short - tracks World economy. As my colleagues say, VWCE and Chill.
5. Happy and safe investing!
You can find more information about European ETFs on justetf.com [4]
Re: Ask HN: How to save/invest/deal with money?
#35Earlier quoted context omitted.
This seems very contradictory. When you pay into a pension, what's the money held in? It will be either cash or some fund (actively mangaged, passive index fund, ETF, a bond fund etc). When you save (point 2), what's the money held in? Cash? How much and for how long? If it isn't cash, then it will be invested in something, and if it cash, how is that less of a financial trap than investing in stocks? You either spen…
Well when I say max out pension it isn't really an investment decision more than it is "this is how much money the government said I need to pay them for them to take care of me when I'm 70", which is really not even about investing. If you want to treat it like an investment, IMO it is like a tail hedge in case you don't acquire appreciable wealth during your work career. Cash is less of financial trap because you a…
So 100% cash (if possible)?
Re: Ask HN: How to save/invest/deal with money?
#36Spend less than you make. End of story.
I do, that's why I made the post.. the difference is just sitting in the bank idle. What am I supposed to do with it now?
Keep saving and you'll figure it out.
I know somebody who worked 8 years saving whatever he could, and he finally opened a shisha shop.
Re: Ask HN: How to save/invest/deal with money?
#37Might be a bit US centric, but my recommendation is: 1. Read the reddit personal finance wiki https://www.reddit.com/r/personalfinance/wiki/index/ 2. Read The Simple Path to Wealth by J L Collins 3. Read The Bogleheads' Guide to Investing 4. Read the Bogleheads' wiki https://www.bogleheads.org/wiki/Main_Page 5. Use a personal finance app to track budget and spending (I use Simplifi). 6. Track your Income, Expenses (j…
I recommend “If You Can”. It’s an short, accessible and entertaining guide to self-managed passive investing targeted to millennials. https://www.etf.com/docs/IfYouCan.pdf
let me guess, one of these "living poor dying rich" advice?
of so, I highly recommend to watch this video: https://youtu.be/Baw0N7B-jV4
Re: Ask HN: How to save/invest/deal with money?
#38For beginning, just read A Dog Called Money by Bodo Schäfer. Other things you could add later.
Re: Ask HN: How to save/invest/deal with money?
#39> I never buy anything
Start buying some stuff. Yes, investing is good and savings are important. But at some point, you’re saving so you can have money to spend. So figure out what you enjoy spending your money on. Do you like things or experiences? Spend some money on a nice meal. Buy nice clothes.
People who are overly obsessed with saving money are very unpleasant to be around.
Re: Ask HN: How to save/invest/deal with money?
#40Might be a bit US centric, but my recommendation is: 1. Read the reddit personal finance wiki https://www.reddit.com/r/personalfinance/wiki/index/ 2. Read The Simple Path to Wealth by J L Collins 3. Read The Bogleheads' Guide to Investing 4. Read the Bogleheads' wiki https://www.bogleheads.org/wiki/Main_Page 5. Use a personal finance app to track budget and spending (I use Simplifi). 6. Track your Income, Expenses (j…
> 2. Read The Simple Path to Wealth by J L Collins
I loved this book, and it’s exactly what I do. I have every investment dollar in VTI (ETF version of VTSAX).
My other favorite book is The Wealthy Barber. That and The Simple Path To Wealth have be the wisdom to keep investing as simple and possible, and some insight on how to develop good investing habits. Paying myself first & dollar cost averaging are both incredible insights.
I also enjoyed The Richest Man In Babylon.