I've been thinking lately that I want to start investing, but don't know how. I don't make a lot of money, but I wanted to know how I can start now while I'm still young. Which apps are easy to get started? I've heard of High Yield Savings Account which I definitely want to do.
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I just have a monthly transfer buying a global index fund (mixture of lots of companies) through Vanguard.
I like Patrick Boyle's yt channel on investing for tips. The first season of the Financial Feminist podcast is also a good resource.
Are you in the US? I'm asking because of the Greek flag in your username.
Some financial advice can obviously differ depending on where you are because tax benefits, the social security, retirement and healthcare system etc. are different. What works in the US may be completely different in Greece and vice versa.
My more universal tips:
Never, ever invest in something you don't fully understand (how exactly does the product work? How is the profit generated? what are the risks? etc.)
Do not invest all your money, always keep an emergency fund that you can access immediately (e.g. in a separate savings account with a decent interest rate). Depending on your nerves and personal risk factors I recommend between 3 and 6 months of expenses (= if you need 1500€ a month to cover all your expenses, keep between 4500 and 9000€ in that fund). It seems like a lot of money to leave uninvested but this is your "what if" and "fuck off" money. It means you can quit a shitty job at a moment's notice without worrying how to pay your rent, leave an unsafe living situation or relationship, pay for repairs immediately if your car breaks down.... That money is safety and freedom. If it's invested you always have the risk that you either can't access it fast enough or the stock prices are at all time low when you need it and you have to sell at a loss. If you have an emergency fund to cover sudden expenses, you can wait and sell (if you really need to) when the prices are high again
Transfer your savings rate away from your main account right after you get paid - out of sight, out of mind. You can spend what is not in your account. Waiting until the end of the month and transferring what is left doesn't work. It will always be less than you think it is.
I have both a regular and Roth 401K and at the moment that’s my only real investment — I have most in index funds and mutual funds. Just my advice but I’d stay away from Bitcoin and highly speculative assets like that. I have seen friends ruined from putting all their money into crypto. Definitely try and go for a job that offers 401K matching — your employer will contribute 3%-5% of your paycheck (but with THEIR money).
I don’t really trust investing apps but I will check out some of the ones mentioned here. I do love the Acorns app. Not for long-term investing, but it rounds up every dollar I spend and deposits the spare change. Every time I accumulate $5 it deposits, so it’s a slow build, but I don’t really miss it. I use that account as my vacation/travel account. I don’t know all the legal loopholes involved (like with Robinhood’s shady practices) so I wouldn’t put a large amount in it. It’s just a neat idea for short-term saving I think.
I have a pdf of a bingo card and I need to put money in a saving jar every day in order to get a thousand in a month. like today I'm putting 3$ an the next day 10$.
A couple o fthings you could check out:
Sharsies (micro investing)
Verve Money (Woman led/ethical investing app/platform).
Does the company you work for have a 401k? Recommend going there to save for retirement first, or maybe an IRA. I have both through fidelity.