Quote:
Originally Posted by Perfectlap
At your age best to invest that delta in something that doesn't depreciate, like cars which are just money pits/entertainment budget. Buy some Apple shares. I was on here in pre-iphone telling people to buy Apple. One young person I know did just that and can now say they have more money in the bank than any of their friends (and probably some of their parents). It's generally not a good idea to put more than 2% of your dough in a single company but when you aren't even old enough to buy a beer, you've got plenty of time to make back a loss. The real truth is that if you used that extra cash to buy shares of the S&P 500 through a Vanguard index fund, over any rolling 20 year period since 1970 you're doing no worse than between
7 - 18%. Point being the sooner you start learning all this and put it to work, the more likely it is that time will repay you handsomely. There are millionaires who give their cash to equally rich hedge fund managers, who as a class, can't outperform an 18 year old kid holding S&P 500 index shares. But for the love God don't dump more money into a car. You already hit the jack pot owning a Porsche at your age. If I had a dollar for every guy over 50 that told me I was too young to be driving THEIR dream car.... |
Very well said, if there is anything any man wants more of its time, and youth provides you with a lot of it, and luckily few financial responsibilities. It takes money to make money and if you don't gather assets young, you'll fight to gain any older.