Advice for young people with some cash interested in the market

[brilliantmichael]

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 )

 

[nizar]

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.

 

[cuttlefish]

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.

 

[tech/a]

(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.

 

[tech/a]

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.

 

[marklar]

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.

This is brilliant advice tech!

m.

 

[chops_a_must]

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.

 

[cuttlefish]

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)

 

[nizar]

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.

Thats gold.

 

[tech/a]

You're only young once.

And NEVER old twice!Think about it!

 

[chops_a_must]

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.

 

[Sean K]

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 ++

 

[BIG BWACULL]

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 ++

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

 

[Sean K]

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!!!

 

[professor_frink]

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

 

[nioka]

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.

 

[tech/a]

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.

 

[Sean K]

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.....

 

[chops_a_must]

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.

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.....

Absolute classic.

 

[brilliantmichael]

...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!