# Advice for young people with some cash interested in the market



## brilliantmichael (11 October 2007)

If you were a student/young worker with around $20k, and you knew what you know now, what would you do?

(Just thought I'd start a thread for us youngsters out there )


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## nizar (12 October 2007)

brilliantmichael said:


> If you were a student/young worker with around $20k, and you knew what you know now, what would you do?
> 
> (Just thought I'd start a thread for us youngsters out there )




Trade a mechanical system.
Which is precisely what i do (i fit your description).
Check out my blog.

Nizar.


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## cuttlefish (12 October 2007)

My advice to a 20 year old with 20k saved up would be not to get too caught up on money and to spend time understanding yourself and what you find satisfying and enjoyable. 

So decide whether you want to be indoors or outdoors, work for the boss or be your own boss, work with a group of people or alone, be creative vs productive vs analysing vs controlling vs organising vs designing vs competing vs caring vs etc. etc. Understand the facets of yourself that will help you decide how best to spend your life.   If you're not sure then try a few different things to get an idea about yourself, that might involve travelling, trying different jobs out, getting together with different types of people, trying different fields of study, and generally trying a few different experiences.

If you sort out what makes you happy and satisfied, and thus manage to do something you enjoy with your life, that also brings satisfaction to yourself and to others around you, then money won't be so much of an issue.  

In the meantime, use the $20k to help you get towards those goals if you want to - though you'll probably be able to get there without using the $20k anyway, so if you don't need to use it, or you've got some left over after paying for travel or study etc., then find an organisation or individual that has proven over decades that investment is their forte, and ask them to help you invest it.  (that could be a succesful individual, or a professional organisation/investment newsletter/managed fund etc.)

Its a cliche but money can't buy you happiness and if you get to 40 or 50 years old and all you've got to show for your efforts is a big pile of money you won't necessarily be particularly happy, so make sure you're also spending the time doing something enjoyable and worthwhile.


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## tech/a (12 October 2007)

(1) Search out *mentors*,in all aspects of life.You'll be suprised what you'll learn for free.

(2) *Balance*.---Work,Investment,You,Family.

(3) Understand *RISK*--for Work,Investment,You ,Your family.

(4) Apply the *Pareto Principle *in all you do. 80% of effort in pretty well allaspects of your life will return 20% of benifit.Search out and apply the effort in the 20% of things that return the 80% benifit.

(5) Understand that Money *will come *only when you create the conditions for it to happen,Same with health and happiness.

(6) *Leverage* and Compounding,Apply whenever you can.

(7) The rich understand how to utilise *OTHER* peoples money.

(8) Whenever it feels slightly *uncomfortable *chances are you'll get the most rewarding results.

(9) If you do what the majority does you'll get the same result as the majority.Dont do the same thing day in and day out and *expect *a different result.


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## tech/a (12 October 2007)

And most importantly.

(10) ----Most can recognise *OPPORTUNITY*.
--------Some know what to do with opportunity.
--------Few take advantage of it.

which leads to 

(11) You can Discuss,Research,Learn,Hypothesis,and Imagine endlessly.

Learn how to be *DECISIVE.*
Get into the habit of decision making.
This will place you in good stead to *take up opportunity*
and* remove *yourself from adversity.

Pulling the trigger should be second nature.


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## marklar (12 October 2007)

tech/a said:


> Learn how to be *DECISIVE.*
> Get into the habit of decision making.
> This will place you in good stead to *take up opportunity*
> and* remove *yourself from adversity.
> ...




This is brilliant advice tech!  

m.


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## chops_a_must (12 October 2007)

brilliantmichael said:


> If you were a student/young worker with around $20k, and you knew what you know now, what would you do?
> 
> (Just thought I'd start a thread for us youngsters out there



Well, still being a young student worker myself, my advice to anyone starting out would be to use half of it for passive income (divvy's) in long term trades. And the other half to use to learn how to trade. But only trading the blue chips for the first few months, until you get a grip. This is not how I started out... I was very lucky.

That is of course if you don't want to go out and have a blast, which is still a good option in my mind. You're only young once.


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## cuttlefish (12 October 2007)

yeah I agree, No. 11 is very good advice from Tech, because at the end of the day life is but a series of decisions when you think about it.

I'd add to that to make sure you include emotional factors as well as rational/practical factors in decision making. 

This might sound like a bit of a "new age, lefty, pinko, tree hugging" sort of statement (if I'd heard it a year ago I would have dismissed it as that), but if you're a practical, get the job done, right brained, "I'll sort everything out for everyone", sort of person sometimes its possible to find yourself making decisions without considering the emotional side of things because you're so focused on the practical outcomes. As humans, we're not just robots, and so a good practical outcome isn't always a good emotional outcome because humans don't always understand themselves or each other.

Which is why its a good idea in life to try to understand yourself, and its not as easy as you think.

"For a man to conquer himself is the first and noblest of all victories." - Plato

"If one man conquer in battle a thousand times thousand men, and if another conquer himself, he is the greatest of conquerors."  The Dhammapada (teachings of Buddha)


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## nizar (12 October 2007)

tech/a said:


> And most importantly.
> 
> (10) ----Most can recognise *OPPORTUNITY*.
> --------Some know what to do with opportunity.
> ...




Thats gold.


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## tech/a (12 October 2007)

> You're only young once.




*And NEVER old twice!*Think about it!


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## chops_a_must (12 October 2007)

tech/a said:


> *And NEVER old twice!*Think about it!




But you can choose to live old as a young person. You can never choose to live young as an old person.


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## Sean K (12 October 2007)

*Hang on, isn't this person a student?*

Go out and spend that money on beer and women buddy!! You only live your teens and early 20s once!!!

:band

You make your future in your 30s ++


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## BIG BWACULL (12 October 2007)

kennas said:


> *Hang on, isn't this person a student?*
> 
> Go out and spend that money on beer and women buddy!! You only live your teens and early 20s once!!!
> 
> ...



I was actually about to say the opposite "whatever you do don't Piss it up the Wall"  :alcohol:


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## Sean K (12 October 2007)

BIG BWACULL said:


> I was actually about to say the opposite "whatever you do don't Piss it up the Wall"  :alcohol:



 LOL

Each to their own perhaps.

Damn, I wish I had have 20K to piss up against the wall in my teens!! whooohooo!!!


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## professor_frink (12 October 2007)

brilliantmichael said:


> If you were a student/young worker with around $20k, and you knew what you know now, what would you do?
> 
> (Just thought I'd start a thread for us youngsters out there




I say invest half of it, and then spend the other half travelling, drinking and chasing women.

Always gotta try and have the best of both worlds


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## nioka (12 October 2007)

What ever you chose to do remember it will influence the rest of your life. Choose carefully the next $20,000 could be hard to find if you spend the first.


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## tech/a (12 October 2007)

Actually *I'm with *Kennas.

At 20 ish you can map out the "Plan" and in your 30s+ put it into action.



> You can never choose to live young as an old person.




Well maybe at 80 but I still give it a good go in my 50s.Most know this as a midlife crisis something Ive been having since my late 30s.
You want to be able to afford your midlife crisis it does make it easier to be involved in.


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## Sean K (12 October 2007)

You guys are sounding like old codger parents from the depression. :


Spend that money!! As fast as you can!!!!!!!!!!!!!!!

Or at least buy the fastest car you can for 20K and go out and crash it with no insurance.....


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## chops_a_must (12 October 2007)

tech/a said:


> Well maybe at 80 but I still give it a good go in my 50s.Most know this as a midlife crisis something Ive been having since my late 30s.
> You want to be able to afford your midlife crisis it does make it easier to be involved in.



I've already had my mid-life crisis.  But your taste in music will suck... you can't bed down women without the lure of money... hangovers are worse... you can't stay awake past 730pm... etc etc.


kennas said:


> You guys are sounding like old codger parents from the depression. :
> 
> 
> Spend that money!! As fast as you can!!!!!!!!!!!!!!!
> ...



Absolute classic.


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## brilliantmichael (12 October 2007)

> ...spend the other half travelling, drinking and chasing women.
> Always gotta try and have the best of both worlds




Do the two have to be mutually exclusive?? I mean it'd be nice to be a smart well-heeled guy in his 20's _AND_ travel, drink and chase women!


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## questionall_42 (12 October 2007)

brilliantmichael said:


> If you were a student/young worker with around $20k, and you knew what you know now, what would you do?
> 
> (Just thought I'd start a thread for us youngsters out there )





Make sure that what you are studying you enjoy. Don't worry about future employment options at this stage. 

Travel - lots of travel can be dirt cheap.  We are lucky to be Aussies, and $20K meandering aimlessly around India, SE Asia etc can go a long long long way.  (Add some volunteering to the mix, and you basically can spend nothing for 3 months of time out from uni).

Learn about investing and take measured risks.  But learn.

Meet and learn from people of all walks of life: young, old, rich, poor, average, beautiful, ugly.  

Be open-minded.


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## hitmanlam (12 October 2007)

Learn the importance of diversification.  You will learn it sooner or later by lossing money or by listening to other ppl.  The way u learn is up to you.

With 20k, i'd go with 4 difference shares @ 5k each.


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## disarray (12 October 2007)

travel. go see how messed up the rest of the world is then come back and be grateful you had the fortune to be born in this country. $10k can buy you a year of backpacking freedom and stick $10k in a commodities producer or 2.


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## prawn_86 (12 October 2007)

disarray said:


> travel. and be grateful you had the fortune to be born in this country.




couldnt agree more. i am so fortunate to already have had the opportunities to travel, and am so much better off for it.


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## nioka (12 October 2007)

chops_a_must said:


> You can never choose to live young as an old person.




WRONG. Definitely wrong.


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## chops_a_must (12 October 2007)

nioka said:


> WRONG. Definitely wrong.




I haven't once met a post hip replacement patient at a gig.


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## BIG BWACULL (12 October 2007)

chops_a_must said:


> I haven't once met a post hip replacement patient at a gig.



You need to get down to your local RSL and watch em boppin to the one man band just after Bingo's finished


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## nioka (12 October 2007)

chops_a_must said:


> I haven't once met a post hip replacement patient at a gig.




Then you definitely go to the wrong places. You don't have to be young to have fun. Remember we have been young but you have not been old, that gives us the advantage.


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## chops_a_must (12 October 2007)

nioka said:


> Then you definitely go to the wrong places. You don't have to be young to have fun. Remember we have been young but you have not been old, that gives us the advantage.




Yeah, of course. Chicks dig ironing right? So I guess it's only right they enjoy ironing out the wrinkles in the birthday suit as well, hey.


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## >Apocalypto< (12 October 2007)

Spend it on Hotted up cars and Hoes!


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## BIG BWACULL (12 October 2007)

chops_a_must said:


> Yeah, of course. Chicks dig ironing right? So I guess it's only right they enjoy ironing out the wrinkles in the birthday suit as well, hey.



Anna Nicole smith loved ironing out the wrinkles  (You asked for it )


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## >Apocalypto< (12 October 2007)

chops_a_must said:


> But you can choose to live old as a young person. You can never choose to live young as an old person.




Yes you can, its called a *mid life crisis! * :car:


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## nioka (12 October 2007)

Trade_It said:


> Yes you can, its called a *mid life crisis! * :car:



Or maybe second childhood. Who cares. A rose by any other name is but a rose.


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## brilliantmichael (12 October 2007)

I'd say whether you invest your money or spend it on things _now_ depends on the degree of benefit you get out of either activity. 

If you're a 'Bill Gates nerd', of course you're not gonna blow all your money trying to chase every woman that you come across because frankly... you're not getting back as much as you put in. In other words the _utility_ you get out of taking a trip to Europe or Asia, or partying, isn't as much as the satisfying feeling you get out of seeing your portfolio GROW BABY! In this case shares are actually SEXY. Hey you might even be thinking about pleasing the ladies further down the track......... You're just waiting for the right time!

However if you regard yourself as some kind of Sex God in the traditional carnal sense, you're young, full of life, and ready for some summer lovin', then of course you're gonna buy cars, take exotic holidays and please the ladies NOW. And money won't seem so precious to you. You're not gonna slave yourself to the system _yet_ (but you know you have to eventually). So you csah your chips now and spend.

It all depends on "utility".

But that's also why the nerds eventually get their revenge later on, when they see their old cool high school friends slaving over a mortgage, a car loan etc. in their 30's!

These are extreme examples though, I'd say most young people fall in between somewhere!


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## Temjin (12 October 2007)

Spend the time and money in investment education first before doing anything to it.

I recently learn something is that NEVER invest or trade in ANYTHING that you do not understand. If you are investing in whatever assets, Aus market, us market, commondities, etc, etc, make sure you understand the underlying fundamentals of it. 

This goes the same for trading. Never trade anything that you don't understand and a well defined plan. Learn what it takes to trade successfully first. There are tons of information located in this very forum plus a billion times more on the internet and in books.

Investing can be done part time, but if you want to trade, you need to commit to it almost as a career. Else forget about it.  

Start reading now and enjoy your life by spending some of your cash on fast cars and girls now. You are still young and there are plenty of opportunities ahead.


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## vishalt (12 October 2007)

Spend your money recklessly to bubble our economy up. 

Drive up retail spending to make shares like JBH and TRS give 1400% returns- also stoking inflation, strengthening our currency and purchasing power. 

Don't hesitate to buy that new car or bling on capital formation out of invisible credit - chances are it will require diversified metals that will boost the bottom line for BHP & Rio. 

Keep paying for petrol and drive energy costs up, make inflation surge so gold looks attractive and oil becomes a long-term secure play. 

The current financial food chain is working out well.


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