The answers have been written for other topics. You have to “translate” it to your question. Not everything is meant for your question. Do yourself a favor, read until the end.
“How do I start?”
1. Take care of your physical and psycholgical health in the first place!! This remark has nothing to do with your question, but is inspired by the fact that health is more important than money.
2. First things first. When your money arrives in your account, you FIRST save money (10%), SECOND reduce debt (10%) and THIRD spend money. Otherwise you will find out that there will be almost never money left to save. Then “forget” (as a matter of speaking) that you have saved.
3. Money is like the crop of a farmer. 10% of the crop is the basis of the crop of the next year. The rest is to make a living off. Say this a thousand times a day (I exaggerate) After a few months, your subconscious will start to believe this statement and start help you act in accordance with it. (The farmer lives for his crop, because his crop gives life to so many people, not for the crop itself, but for what it does to himself and many people. The same with money. A scrooge goes for the money for no other reason than the money. A hard working person goes for the money, because it means a living).
4. Another piece of advice I always give is to buy 1 ounce of PHYSICAL silver each month and keep it until the day you retire. In the long run you will have profits. You will not easily sell the silver for other purposes (very important), so you will have your own retirement capital, even if it is a relatively small sum of money. If you are 20 years of age, you have lived for 240 months and you should have 240 ounces of physical silver. One ounce of silver costs now more or less $20, so you should not feel the buy in your budget, even if you have to buy two ounces for the next 240 months, because you started too late with that idea.
5. Choose also one note or coin, that you never spend when it comes into your hands by accident and in an honest way. “My coins” are pieces of €1 and €2. Put them in a jar and “forget” them for a long period of time.
6. Debt and alcohol works in the same way. Use both with moderation and you have pleasure. Enjoy too much and you have problems. Get addicted and you are in real trouble..
7. Cut up your credit card and use a debit card instead. As far as I can know it is not that simple in the USA because of the laws about improper charges and fraud.
8. Avoid advertising. What ever they told you, the only purpose of advertising is to seduce you to spend your money on their stuff that you nine out of ten do not need anyway. I have a television that can stop and delay the broadcast. I stop at the beginning of the advertising and 7 minutes later I wind fast forward. Window shopping is also a form of advertising
9. 80% of all problems are caused by 20% of reasons. So if you can find out those 20% reasons that make you spend 80% of all your money, it makes easier for you to reduce your expenses.
10. Avoid bars, restaurants and paid entertainment.
11. A penny saved is a penny earned. Many, if not most spending vs. saving decisions occur in the small moments of life, at the pennies level.
If you think only in terms of saving money, this could happen to your money.
In the 1970’s there was a soap that was called “the six million dollar man”. It was a astronaut that had a terrible accident, but with the help of advanced technology and loads of money, he was rebuild and changed in a superstrong man that worked for the government.
What I want to say is that six million dollar was in those days an astronomic high number, a bit like six billion is today. Now it is “just” a big number.
Inflation can “eat” away your purchasing power.
My way of paying of debt is the 1%-method.
I advise you to use 10% of your income for debt repayment. However one want to feel a result almost directly after pay off a sum of money. This is the way one can do it.
month 1: $1000 debt. Pay off 1% or $10.
month 2 : $990 debt. Pay off 1% or $9.90.
month 3: $980.10 debt. Pay off 1% or 9.80
month 4: $970.3 debt. Pay off 1% or 9.7 and your new debt amount is $960.6
Now you will “feel” your effort of paying off debt two ways. You pay back every month a little less and you pay less interest every month.
You can play with that 1%-roule. You can make it 5% every month or 0.5%. I gave you an example of what is posible. But make sure that every month the debt is smaller than the month before with at least the percentage you have chosen.
“How to invest?”
There are two ways. Rental real estate and a combination from precious metals and stocks.Real Estate: Buy a small house or a garage with morgage. Rent it to someone (a garage ask less maintenance) Pay off the morgage with the rent and sell it.
When playing the game Monopoly there is almost always a player who chooses to stay on his money in the beginning. At first it seems like a nice strategy. Every time when 'Start' is passed, this player sees his capital grow.
This strategy goes well until others start buying houses and hotels. All of a sudden, rent must be paid everywhere. For the player who stayed on his money, the inevitable bankruptcy does not follow much later.
In real life it is not entirely true that a person ultimately owns everything, and all others do nothing at all. But in real life too it is true that those who invest their money in assets that raise money themselves (shares for example) are ultimately far better off than those who stay on their money and do not invest.
How do you win?
How do you win with Monopoly? Buy as many properties as possible. And preferably the orange and red streets because they have the highest expected return. Well considered are the value shares of the Monopoly game!
And nice to know: the very most expensive streets - Kalverstraat and Leidschestraat - do not turn out to be such attractive streets to buy. Compare them with the most beloved shares of the moment, the expected return is actually not good at all.
The game Monopoly can not be compared completely to real life, of course. But in real life there is certainly a strategy to become rich:
1) Always live under your stand so that there is money to invest;
2) Invest the saved money in assets that raise money yourself.
As with Monopoly, it is virtually impossible in real life to save yourself richly. Conversely, it is virtually impossible not to become rich when, for a few decades, both items are held above. A significantly shorter period is often sufficient to become 'just' financially independent ...
Read the book “Fail-Safe Investing, lifelong Financial Safety in 30 Minutes” by Harry Browne.
Basic principle is
25% of your savings goes to stock
25% of your savings goes to precious metals
25% of your savings goes to obligations
25% of your savings goes to cash
Every year you rebalance so that what is too big becomes 25% again and what is too small is 25% again.
Let us say that your stock-portfolio is only 20% of your portfolio and cash is 30% you take cash and buy stocks, so you have again 25% - 25%
For stocks I use always the same system:
The rest of the answer I have written for other topics and is “copy-paste”. So you have to “translate” it to your question.
The most important lesson you will have to learn is that time will be your only friend in the stock market. Do not turn your back to your only friend by getting impatient.
Stay away from pennystocks or, if you buy a pennystock, act as if you buy a lot from the lottery. Your money is lost in 99.9% of the cases.
You will have to learn many lessons and that could hurt you a lot. Over the years I have developed a technique of investing that makes that pain small enough to stay in the stock market for the rest of your live. I will tell you that technique.
For everything that can loose all its value, I invest no more than $500. I bought recently a stock for $150 including all costs.
When the price go down, I will never sell. I do not take losses, until that stock goes to zero. If the price goes up, 10% of 15%, I will sell 90% of my stocks and keep 10% of the stocks as free stocks.
I bought 450 Lightwave Logic for €473 (I live in Belgium and I give you examples of what I actual did, so the price is in euro) after transaction costs. I did that in October 2012.
I did not receive dividend. Until 2017 the price stayed under my buying price. In May 2017 I sold 340 stocks and received €435 on my bank account. So I have 115 stocks left for €38 or close to zero.
For precious methals I have two methods. First of all I buy the stock CEF. That is the only stock I know that represent PHYSICAL gold and silver
Secondly: Another advice I always give is to buy each month 1 ounce of PHYSICAL silver and keep it until the day you retire. In the long run you will have profits. You will not easily sell the silver for other purposes (very important), so you will have your own retirement capital, even if it is a relatively small sum of money. If you are 20 years of age, you have lived for 240 month and you should have 240 ounces of physical silver. One ounce of silver cost now more or less $20, so you should not feel the buy in your budget, even if you have to buy two ounces for the next 240 month, because you start to late with that idea.
Make it for my part 10 ounces of silver per month you have lived or 1 or more ounce gold. I give you the principle technique I use myself.
For obligations I would prefer funding circles or an other crowd LENDING firm.
I invest every month €100 in one loan of the category A and B. I never go for category C and higher because they are too insecure. You should make it a priority not to loose money on those loans, so you should choose for the save category as well.
Go for many loans, so your risk for problems go down there to.
About the price of silver I can say, that I made a study that anybody can make for oneself and I can asure you that in the long run the changes on profit are bigger than the changes on loss.
I pretend to buy every year 12 onces of silver at the end of the year (to make it more visual understandable). I pretend to start in 1979, because silver hit a price of $50 to drop with 90% a few years later and to never hit the price of $50 again for the next 30 years or so. Will there be profit, yes or no?
From 1979 until 1999 I use USD ($). Later on I use EUR (€) Up to you to use your currency or to pretend that €1 equals $1. This will not infuence the overall result of the study.
Even in this exceptionally bad situation one hits finally profits.
- One should not be too worried about the value of ones silver investment in the long run if one buy every month 1 or more ounce(s) of silver.