Say you have $500 of left over cash every month, its rotting

buy real estate. a 500 dollar mortgage'll get you a long way.

>>1652756
Not if you buy from a fly-over state. Which is where you will find said rates.

>>1652744
Index, or start something

File: 1472188693198.jpg (145KB, 1080x1250px) Image search: [Google]

145KB, 1080x1250px

>>1652837
Pls elaborate. I am thinking of putting it somewhere long-ish term (like 5 or so years, not like retirement money, though that wouldnt be a bad idea)

Pic related; qt 3.14 that you can only keep if you have money

>>1652842
Well, unless you want to start a small business or buy and rent out a condo or something, I think you should invest most of it, but keep some tucked away for emergencies.

I don't know how much you'll look after the money, or how much you enjoy looking up and researching companies. If you don't really care much for it, you should set up a monthly investment plan over two-three funds, and forget about it.

Otherwise, you can pick stocks, which is what I do. I focus on dividend-paying stocks, so that I get a cash flow that I can then reinvest.

Buy a new gpu for your mining farm each month

>>1652858
>picking individual stocks

How is a 1% yield like?

>>1653362
I don't know. My lowest yielding stock is currently JNJ with 2,5%. But that's of current stock price, and I didn't buy it at current stock price. ;)

>>1653385
I bet you still get raped thru taxes

>>1653385
So with $500 you are making like 10-12 or so dollars a year.... LOL

>>1653444
I don't pay taxes on dividends. I only tax what I withdraw from the account. Tax rate is 25% for withdrawals from the account.

>>1653446
Say I bought a stock for $10, which pays $1 in didivends.
Three years later, the stock price is $20, and it pays $2.
You bought for $10. What's your yield?

>If you want to retire early: Index funds
>If not: fun, higher quality food and clothes

>>1653480
>penny stock trading
>2016

Come on, dawg

>>1652744

>Say you have $500 of left over cash every month, its rotting away at your checking account. What would you do?

The answer for you is, "It depends."

How stable do you consider your job and income sources?

Do you have a skill set that would make finding a new job quick and easy?

Any variables that might cause problems? Chronic/long-term illnesses, etc.

In general, every individual should have a nest egg or emergency fund that can cover, at the minimum, their living expenses for a set amount of time based on the prior questions. Most would consider 6 months to a year to be solid targets for a buffer of liquid.

I'm really conservative so I maintain enough money for 2 years, 1 year's worth in a high interest money market (1%), and the other year's worth in a 1-year CD at around 1.25%. This includes all potential expenses including rent, food allowances, insurance premiums, and even my out-of-pocket maximums in case of a medical emergency.

If that is met, then you need to determine if there are any debts that are drawing interest. Obviously paying off credit cards and the like, followed by less damaging sources is the optimal strategy (high to low interest.)

If that's achieved, then really you can determine how you want to invest, and what your own tolerance for risk is. Like I said, I'm very conservative, so I tend to split my money between both 100% safe (CDs/Annuities), and long-term returns (Vanguard Target Retirement fund which is primarily stocks). The peace of mind of knowing that I'll 100% have over a million to retire on through FDIC insured vehicles is fine for me, despite the higher upsides of investing all of that money into the market.

That said, most people would recommend far more aggression, and depending on age, that wouldn't likely be a bad decision. Target Retirement funds seem to be the overall best option for most people who aren't micromanaging their assets.

BUMP

Any more ideas?

In the same situation as you OP. Tried investing in a stock recently with about 200 dollars. Hoping it will give me a little bit of a profit atleast.

>buying extra virgin olive oil

Shiggydiggy

>>1653582
This is a very conservative answer.

Most recognized financial planners will say 3 to 6 months cash for an emergency fund.

Target Retirement funds are fine if you dont have a lot of money you are investing. At a certain point, you grow out of them. They tend to have average to even less than average returns. If you are in your 20s and plan on saving for a long while, it doesnt make since to not go pretty much all equity index as long as you can stomach market downturns and stay invested.