Current Events > CE Investors: Any tips for a newbie?

(+) Yeah! (+)

I don't make a lot of money but I'm fortunate to not have any debt (outside of morgage, kids or girlfriend? (I guess the GF thing isn't fortunate but I'm not looking for one right now either)

So I'm able to able to save even though I don't make a lot. I've been looking a lot into investing so I can start at the beginning of the year. There is a lot more to it than I thought so I'm busy educating myself first. There is so many ways to invest I feel a little overwhelmed and scared honestly.

Any tips? My plan is to invest $1000 which is very scary for me. I got the money so it isn't like I'm endangering myself but that is a lot of money to me.
---

weed stocks and crypto
---

just buy an S&P index 500 fund and call it a day
---

Rule number 1 of investing: Never invest what you can't afford to lose. If $1,000 is a lot of pain for you, you are not ready to invest it. It's also not a lot of money to work with as far as returns go. What you should do instead is start saving, preferably into a money market or a high yield (online) bank account. Those are both low risk and highly liquid, so you can keep adding to the account as it earns interest. It's not a lot, you'll get around 2% annually maybe, but it's better than earning nothing in your checking account. Also the interest rate can change as the federal reserve raises or cuts interest rates, so that can affect your savings. Right now they're raising them, which is good for you, at least until the next recession comes around. But in the meantime, while you're saving your money, you can start reading up on investments. Learn about how stocks and bonds work, how to value a company, and diversify your portfolio.

Doge coin

foreverzero212 posted...

weed stocks and crypto

I can see the first being profitable, but Crypto is a real gamble.
---

Invest in North Korea. Youll soon be a billionaire.
---

Annihilated posted...

Rule number 1 of investing: Never invest what you can't afford to lose. If $1,000 is a lot of pain for you, you are not ready to invest it. It's also not a lot of money to work with as far as returns go. What you should do instead is start saving, preferably into a money market or a high yield (online) bank account. Those are both low risk and highly liquid, so you can keep adding to the account as it earns interest. It's not a lot, you'll get around 2% annually maybe, but it's better than earning nothing in your checking account. Also the interest rate can change as the federal reserve raises or cuts interest rates, so that can affect your savings. Right now they're raising them, which is good for you, at least until the next recession comes around. But in the meantime, while you're saving your money, you can start reading up on investments. Learn about how stocks and bonds work, how to value a company, and diversify your portfolio.

When I say $1,000 is a lot to me, it's more based on how much I make. I'll be just fine if I lose that entire thousand but it hurts because I know it took me time to save it.

I'll take your advice though. Sounds like a good idea in general. I don't mind doing that and having that set for life. Why not? However, I also want to get into investments where I plan to last, at max, 5 years, then get out and invest somewhere else. I know that's risky and I can lose money doing that. However, getting a strong return in 5 years feels more appealing than starting a retirement account.

Maybe that kind of investment is probably forever out my range though
---

Tip #1: Don't ask CE for investing advice
---

voldothegr8 posted...

Tip #1: Don't ask CE for investing advice

Well I'm just using CE as another source. This place isn't my go to. I typically heavily research things like this before I dive in.
---