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Thursday 5 August 2021

Is $25000 in savings good?

 There are already good answers to this question. I’ll just add a few comments:

  1. invest it in your health. if you have any health related issues, get them looked after. get your teeth fixed if they need it, so as to have a great smile. It’s an asset. Have laser surgery for your eyes if they need it.
  2. Invest in your appearance. If you need a nose job, or other plastic surgery to correct obvious problems with your appearance, do so. I don’t mean being obsessive compulsive, getting needless breast enlargement etc. Join a fitness club or hire a personal trainer.
  3. Invest in your wardrobe. Not fad clothing, but classic clothing. Spend a bit more even if you have fewer items. Quality counts, and people judge you by your appearance, and that includes your clothing.
  4. invest in your education. take courses to upgrade your education and skills. It might be computer/software skills, marketing skills, accounting, etc. Don’t waste money on the silly con TV ads for training in investing in real estate. They are ripoffs. YOu can get the same info for a fraction of the costs by reading a lot of informational ebooks from amazon kindle. They can be a good investment, and they’re cheap.
  5. do keep a “stash” or reserve for security, in case you lose your job. Use a different bank than the ones you have credit cards with, and different from the one that your pay is deposited into.
  6. If you decide to start a part time business, do not invest your $25,000 in it. Allocate a very small part of it, such as perhaps. $1,000 or $2,000. That’s all. I am a strong believer that your business should pay for itself and its own expansion. You might buy stuff at a thrift shop, or garage sale, or estate sale, or Costco, if you see in advance that it is selling on amazon or ebay for more money, for enough to enable you to make a profit. Or you could find a product where you can make a profit by buying it on aliexpress, or alibaba, and selling it online. If you start to make money, plough back your profits.
  7. If you have studied real estate buying and selling, you could use up to say, $5,000. as a deposit or deposits on properties that you think you can flip wholesale. So your offer is conditional, and you look for a buyer before the conditonal period is over. If you have one, sign up an assignment agreement and take a bigger deposit than you gave. If you don’t find a buyer by your deadline, cancel the deal by notice in writing, and get your deposit back. Rinse and repeat elsewhere.
  8. If you want to do something risky, and study day trading, in commodities, stocks, forex, options, etc., then you could “gamble” a small part of your $25,000, say $5,000. period. Maximum. But start small, and gain experience. You should actually start trading on paper to test out your techniques. Don’t do it unless you’ve really studied a lot and tested in on paper first.

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