Hi, I'm a 19 rn for a bit ill be having a few streams of income, and in total ill be getting just shy under 35k this year, with 4k of that untaxed. I really want to save and invest. I want to know how to actually build good savings and be smart with my money. At the moment, I literally only had one bank account when I was 16. I've wasted money a bit in the past, but i wana actaully start something properly. Ik loads of my peers on Trading 212, and some have premium bonds, but I just don't know where to start. I feel kinda embaressed asking my peers because I do finance and accounting at uni, and I'm supposed to know this stuff, but alas
Where do I start financially to set myself up in the future well?
byu/FigMany3727 inpersonalfinance
Posted by FigMany3727
4 Comments
Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics.
its very simple
spend less than you earn; invest the remainder
when accounting for things like; luck and unfair advantage, the best thing you can do is invest in a broad index etf.
over the past 15 years the s&p500 has produced better returns than 89.9% of other us large cap funds…….less effort but more gains
Establish a $1000 emergency fund, pay off any high intereset rate debts, grow the emergency fund to cover 3 to 6 months of living expenses, open a Roth IRA account and contribute the maximum amount each year. In the Roth, get the money invested using funds as reccomended in the Boggleads “3 fund portfolio”. Start saving and investing outside of the Roth IRA using a taxible brokerage account. If you employer offers a 401k, use that before the Roth IRA.
I agree read the sidebar wiki and improve your own personal finance knowledge is a great way to get started.
Live on less than you make, and invest for your future via a retirement account like an IRA or 401k if you have access.
Don’t day trade individual stocks like your peers. Your peers are way to young to have experienced any significant down turn in the market, so their frame of reference is pretty short and in their eyes the market only goes up. That doesn’t reflect reality. Very few people, including professionals can beat the market in the long run day trading. Boring diversified ETF’s that you hold for the long term are the way to go for the vast majority of people.