19 Year old with 42k in savings. Work part-time as well as uni, earn ~800p/w.
What should I do with my money, feel like its a waste just sitting in my account, would like my money to make me money… Preferably relatively quickly.
Lost 19 Year Old - Financial Help
Lfranky1321 on 25/10/2017 - 15:37
Comments
Translation: "I'm 19, have inherited some money and I'm too lazy to research what to do with it. Can someone on Ozbargain give me a get rich quick scheme please?"
"inherited"? lmfao okk
Don't laugh too much… waste the same amount of energy on doing a research and share your findings…
Laughing also wastes energy.. not that much though…
lol don't we all have 50k in the bank working a 300k job at 20?
Invest in Crypto.
Are you having a go at the Op because you're not up to date with your maths? ~$800x~50 is ~$40k p.a.
You’re only 19… Work until June/July next year then spend 6 months in Europe.
Coming close to graduating from uni, would really prefer to smash that out first. Travelling is a good idea though! I've already been through a decent amount of SEA
Wow how did you save $42k by age 19?!
Still live with parents, only spend money on petrol, food and going out. All uni debt is on HECS. I've been working since I was 15. I work in retail sales so my income is $800 p/w on average during uni break when i work more i average about $1400p/w net.
You need to consider paying off HECS debt first. Namely because HECs debt changes according to CPI and CPI generally increases every year.
Of that 42K, apportion some of that to pay off outstanding debts. Then, you can spend the rest on investment products.
I'm personally using annuities which gives you guaranteed income and protects you partially against inflation. It is not a method of making money fast — it's actually relatively slow, but it minimizes risk.
With my current plan, it's a 10 year maturity period of which I put in 100K in a single payment, earning back 4.8% per annum and once matured in 2022, they'll pay me back my 100k.
If you want fast and risky, you can either look into crypto currency, or currency trading.
i thought hecs is the cheapest debt that should not be paid off unless there is a discount offer ?
@phunkydude: you're right. Hecs is an interest free loan, you're only paying cpi increases - which is minuscule. You're better off investing the money than paying a hecs loan, everyday of the week.
You need to consider paying off HECS debt first.
Ssshhh! You are not supposed to say that! https://www.ozbargain.com.au/comment/4773581/redir
Annuities lock in the prevailing interest rate when you buy them. They are better for buying when interest rates are high than when they are low, although granted we are in a low interest environment.
What store pays that much as a casual?
19 yo, around $20 per hour.
Genuine q as my 19 was getting about $400 in a Telstra store for 25 hours a week. How'd ya get to $800 let alone $1400.commission.
How do you net $1,400 a week working in retail? That is the equivalent of earning $100,000 a year (not including super). I would be keen to know how - sounds like a good opportunity.
@pantsparty As i mentioned this only occurs when i'm on uni break and working full time. Which isn't very often. Roughly about 15 weeks out of the year.
@franky1321: I understand that, but how? Most retail managers work full time and earn no where near that,and I assume your not a mananger?
Wow $1400 a week net? That's insane.
I'm a qualified electrician for a power company, and I don't clear $1400 a week.
That's over $90k a year, gross.
I'm in the wrong occupation, that's for sure.
We all are apparently.
i don't know much, but i think maybe asking your boss for a raise to meet inflation may help, sorry if i sound like a potato.
Save 38k more and buy a high yielding car
The idea is right,but you forget that the high yielding car would have, according to that OP, be worth probably about $150k by the time this OP saves that 38k..
Well done on saving so much. How did you do it? Care to share some tips?
Also the answer you're looking for is ETF - Exchange Traded Funds. Do your own research, but that's the asnwer.
Thanks! Will definitely look into it.
Refer to comment above ^ :D
Bitcoins my man.. still going up.. I use https://www.btcmarkets.net/home
Quick and easy.
I put $500 into Ripple because I like always choosing the opposite of a good thing and (profanity) me right.
I put $500 into Ripple because I like always choosing the opposite of a good thing and (profanity) me right.
So you did get into the opposite of a good thing, meaning you lost your money?
I bought high at $0.33 because timing was bad and now it seems to stay at around $0.25 $0.27 so.. eh..
My initial raw $500 AUD investment after trading fees and what not is at $378.74 and I have 1,448.56952645 Ripple in my account and 0.005 Bcash. So I am definitely down lol..
😀 we've prob all done something like this.
@PVA: oh don't get me wrong lol I know how to make some money I just don't like to lol.. if you want good returns go bitcoin or invest in nvidia stock for now lol.. I just like playing the losing game in these markets or at least the slow burn.. there is a 0.0001% chance it might bounce back but that chance is little but the thrill that might happen is amazing and thrilling fun for me haha lol :)
But thanks for the comforting words though PVA man haha lol I appreciate it :)
I just sometimes like to lose lol. Especially if I can control it.
Tell me about it.
I bought IOTA @ $1.15, 2 months ago.
Yesterday, it dipped below $0.46.Crypto is a fun ride, that's for sure.
Pay of HECS debt, I things there a discount if u pay early . Before it get compounded over the years
Unfortunately, the HECS debt discount is no more http://studyassist.gov.au/sites/studyassist/news/pages/chang…
You can earn more interest on the savings than you will save on paying your HECS early - better to not pay it off early.
Invest in stocks. Best return over long term but expect short term volatility. You can buy an indexed stock like STW (look it up) which has lower management fees and lower risk as it just tracks the overall market.
Not bad income for someone on part time in sales.
I'd have to jump on board with the crypto train.
Bitcoin defiantly helps me fund this ozbargain addiction.
Why is Bitcoin so defiant?
defiantly
Haha, I think that wasn't an accidental joke, you know about this autocorrect fail IIRC.
You could put some funds into international currency (and even better tie it to a place you may travel to in the future). A guy on seabreeze had a few hundred thou win on the lotto in 08. Put I believe $200k into USD, which was then worth 1.5x more in 7 months. Spent some on a US holiday, converted the rest back to Aud. Went again in 2012 with the original investment. Won again!
Personally I'd have no chance being that lucky, but the point I guess is currency can be spent at any time and USD is pretty safe…and it yielded 50% in 7 months.
In a similar situation to you 15 years ago, I went property and shares. CBD and mining towns. Shares in Banks, Mining, Oil, Logistics, Telco, Airports and Medicinal stock.
Net result:
CBD property not quite doubled yet.
Mining town properties. Vacant and killing me financially.
Bank shares - 4 x value, good dividends, but 1 went bust altogether in GFC.
Mining Shares - Dividends good, value not changed much
Oil - worth 1/4 what I paid
Logistics - Was worth 1/2 what I paid, then a Chinese take over, doubled my money.
Telco - Good dividends, price unchanged.
Airports - Up 50%, good dividends.
Medicinal - Was up 30%, missed it, back to what I paid.- In summary, lost maybe $200k and gained probably the same. Probably no different than if I put it all in a 5% managed fund. Regular dividends are a bonus though. Don't invest more than you are willing to lose. Keep 5% or more at least for a home deposit.
Out of curiosity what are you studying at uni? I'm doing engineering and there's no way I could work that much and still pass all my units.
you should read up on personal finance and investing websites and work out a risk / return plan. check with some industry super funds for their 'free' advice and learn about how much super you can contribute a year.
then pick one with the lowest fees and put it in their indexed option.
put as much as you can into savings through super
then pay off debt if the cost/benefits make sense on risk/return.
allocate assets and diversify.a lot to take in.
don't waste money on a financial planner.
do a financial planning course yourself.
will help you thru life, career, etc.don't pick exotic investments or risky unproven ones eg bitcoin, forex, direct shares or property.
Hi, franky1321,
Congratulations for being able to save so much of money and also your current weekly earnings. Yes it is very unwise and pity if you just let your savings doing nothing. With this lot of money you can make some passive income for your future e.g. to acquire your own house. But just not at this moment as you are still studying and you are so young. I am an oldie ( a former professional accountant) and have few grandkids who are still in school , but soon they will be in uni too like you. Once they are over 18, they will be considered as adult like you. I encourage their parents to start with them learning investment in share equity by purchasing small lots of shares fort hem for the start and this will encourage them learning the complexity of share equity investment apart from earning for them some dividends. Guys like you will probably better start with those big named listed companies for security sake, and after sometimes I bet you will naturally choose some growing but rather risky ones. Some shares I can recommend you are : SCP.ASX and BWP.ASX . Both are listed property trusts and they do yield you good return around 6% p.a. ( in addition to yearly capital increase)and they are related to Woolworth and Bunnings stores. ( I can defitely say they won't disappear within the foreseeable future say 7 years).Never pay back HECS now as someone said they are cheap loan. Wish you success in your studies and your wealth creation well.Invest in yourself. Go travelling. It will be an eye opener.
Brissy unit prices are falling back to earth.
You may be able to get a one bed in an older building for that ,
pretty pretty pretty soon .19 yrs old, earning $800 per week part time or $1400 per week NET full time (which is the equivalent of $100k pa gross).
Yup numbers stack up. Why bother going to uni at all, you're already making more than the average Australian.
Don't we all