Advice for young people with some cash interested in the market

[questionall_42]

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 )

1. Make sure that what you are studying you enjoy. Don't worry about future employment options at this stage.
   
2. 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).
   
3. Learn about investing and take measured risks. But learn.
   
4. Meet and learn from people of all walks of life: young, old, rich, poor, average, beautiful, ugly.
   
5. Be open-minded.

 

[hitmanlam]

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.

 

[disarray]

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.

 

[prawn_86]

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.

 

[nioka]

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

WRONG. Definitely wrong.

 

[chops_a_must]

WRONG. Definitely wrong.

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

 

[BIG BWACULL]

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

 

[nioka]

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.

 

[chops_a_must]

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.

 

[>Apocalypto<]

Spend it on Hotted up cars and Hoes!

 

[BIG BWACULL]

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 )

 

[>Apocalypto<]

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:

 

[nioka]

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.

 

[brilliantmichael]

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!

 

[Temjin]

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.

 

[vishalt]

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.