Just as the title states. I’m 27 years old, I live in an apartment that runs me 1700 a month. All in all I have about 3k worth of bills. I currently have $43,000 in my savings, I’m looking into investing it somewhere. My thoughts currently are maybe buying an airbnb or buying a food trailer and hitting fairs/festivals around the United States. I’m lookin for some clear advice on where I should invest and what would be the most profitable. I’m a firefighter that works 10, 24 hour days a month so I have some good spare time. Thanks in advance!
Edit: I didn’t come from anything, my dad was a low income earner until recently and my mother was stay at home. I don’t have the broadest knowledge of finance.
Advice needed on investment
byu/Daynescott15 inpersonalfinance
Posted by Daynescott15
10 Comments
Don’t invest in long-shots until you have a 6 month emergency fund, and have maxed your retirement accounts.
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
I’ll advise you set aside $20k for emergencies, leave $23k to invest. I have a good investment I can introduce you too is of low risk and high income
Why go for uncertain investments with substantial risk and substantial work required rather than very simple, although not always psychologically easy, stock market investment?
If it’s scary, learn first. But the is the simple, straightforward thing. Starting another job is not simple and businesses fail more often than they flourish.
Frankly, I think $43k (while a respectable chunk of savings) is not an amount where you start looking into throwing it into random business ventures. Do not start something like a food truck expecting a safe ROI, do it only if you have a passion for it and can withstand possibly not making much money from it (or losing it altogether). Airbnb can maybe work if it’s a property you intend to hold onto for yourself and your family, but it can be a lot of work and/or money to maintain and $43k is not a substantial downpayment depending on the property. You’d be reliant on consistent income from it to pay the mortgage.
If you’re a firefighter I’m assuming you’ll be able to retire fairly early with a decent pension. I would set aside a comfortable amount for emergency savings and then supplement your retirement savings first and foremost. If you want to save up cash for a side business you definitely can, but don’t jump into something expecting it to make you a ton of money.
>buying a food trailer and hitting fairs/festivals around the United States
That would require you to be licensed and pay tax in various jurisdictions, wouldn’t it?
Is your savings accruing any interest or just sitting in the bank stagnant? Lots you can do to let that money passively work for you by investing in ETFs or dividend funds.
If you’re more risk averse you can just park it in a high yield savings account.
I’m 30 years old and have a similar amount parked away growing slowly, so I know where you’re at.
As a FF you can start some remote side hustles that would be more profitable, while you have downtime at the station. Web design, online coaching, emt skill tutoring are a few that come to mind.
I was also in the process for fire a few years back but decided to focus on my business that became my full-time job.
I would be sure I have a Roth and max it and then open a hysa I like ally because of the buckets and make them an emergency fund within it. My Roth is in vti and vxus 90/10 and has more than doubled since I started it 7 years ago. I was nervous but have stayed the course. Working on saving for a house and add 50 to a brokerage every pay period
Travel while you’re young-now! Enjoy life!
Stick with basics : Keep at least 6 months of living expenses in high yield savings acct. Contribute to 401k/403b, if available, to get full employer match. Then max out Roth IRA. If you have $ left over contribute more to 401k. You may have pension as a firefighter. That would be helpful down the road.
Choose low cost stock index funds for instant diversification. Stay the course no matter what market news you hear.