Hi everyone! I’m 20f and I want to start investing but I’m not sure where to start. I don’t have very much to invest right now but I assume there must be ways to start anyhow
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Learning to save is your best start. Try to be frugal in lifestyle
and save as much as you can. Compound interest is your friend at your age. Look into Exchange Traded Funds (ETFs) to minimize risk.
The more experienced will chime into your question, but I know they will ask if you have an emergency fund.
No point in having a great investment if it can be wiped out by an unexpected situation.
And if you have any debt, pay those off too. Otherwise, I wish you the best of luck!
Check How to handle $ in the sidebar, and the 18 to 25 post. Come back with specific questions.
There’s also a specific read on investing, although I would personally consider it overly cautious to have a bond fund as a 20 year old with a long time horizon. Your risk tolerance plays a factor.
Don’t sell in a downturn. When the markets are doing badly, company ownership is on sale — buy instead.
Pretty sure you could invest in an etf with Robinhood .
Do not go to a financial adviser because they can talk you into bad investments that may not let you take out your money for years, unless you pay a withdrawal penalty. Even advisers at credit unions can’t necessarily be trusted, and many of them just rent office space from them.
Maybe you should keep your money in an FDIC-insured bank account until you learn what to do. Some Internet banks pay 1.5% annual interest and no fees, at least if you meed a minimum balance requirement.
I’ve been using acorns for 2 months as im in a simmilar position to you. Except im 27 and have 2 kids and im getting married in a year. Im investing 5 a week. I’m giving it a a 6 month trial but so far it seems to be working. Im thinking of it like savings with the possibility of earning money. Investing is a long term thing.
I would look into one of the robo apps like Betterment or Acorns. Yes, you do need an emergency fund, but there is no reason a robo investment could not serve the same purpose. Paying off debt while sacrificing savings does not help you maintain an emergency fund – it needs to be a balance.
Edit: Wow! Looking at the downvotes there is apparently a clear dislike or lack of understanding of how services like Betterment function!
Acorns is the bomb. We put $5/week and did change roundups and came out at like $1500 in one year.
Robinhood app. When you sign up they will give you a free share of stock.
Investing in individual stocks is a pretty risky proposition when you are first starting out.