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What is the best investment for someone who makes less than 800-900 US Dollars a month? |
to safely have money in the near future for myself and future family... You must avoid speculative (risky) investments like stocks. You must stick to either bonds (which carry little or no risk) or mutual funds (which negate the effect of risk because they are invested in numerous types of stocks from many different corporations). I would strongly advise a no-load mutual fund. Also, before you do any of this, find out whether your employer matches any portion of your 401k. If so, you must contribute to your 401k (at least to the point of the match, if possible). This allows you to invest without the effect of taxes until you withdraw (hopefully when you retire). If you want it for the near future, something like an ING savings account will give you good yield with instant access and very little risk. There are lots of other online banks offering similar rates and deals. I would open an IRA account or maybe open a CD at a local bank or financial-they both earn intrest and there are options out there where you could make a deposit into these acconts. The best investment for anybody is not in stocks and bonds.....it is in business ownership. Whether you buy a franchise or retail on ebay, the only risk is directly related to your work ethic and commitment in your business. It all depends on what your expenses are. Based on that amount and your mention of "future" family, I am going to assume that you are young and probably live at home (i.e. at your parents' house) and that your $800-900 is disposable income rather than what you have to live off of. If that is the case, save as much as you possibly can. Read a bunch of books on the topic. Check out The Motely Fool at www.fool.com and read their book "You Have More Than You Think." Go from there and best of luck! either work hard and try to get a promotion and try to clim the ladder of success which takes 20 years if your lucky , or work hard by creating your own business for five years , and make residual income for the rest of your life. Near future means you are not interested in long term interest gains or investments, this is counter productive in the long run. The safest investment is a safety deposit box but then you are guaranteed to loose money to inflation. Next up is a federally backed savings & checking account that does not have fees. After that you may wish to consider longer term investments, but remember when you do longer term investments there are penalties if you need the cash back right away. IRAs are retirement accounts which you should consider, retirement is probably a long way away for you but they are the best easy long term investments due to the tax breaks. But again as you said you want it for the near future and safetey so most good return % investments are probably out. If you change your mind on length / risk look into stocks & bonds, esp. those that track a group such as value funds. I make about that much and I can't save crap. Bills, gas, and food get it all. On an income that low perhaps you can try to buy a car for less than $100 and resell it. When you receive the proceeds buy another and just keep turning the money over into other vehicles. Look into auto auctions. Other investments (stocks, bonds and the like) take too much cash which you don't have. Another avenue of investment is your time. You have the same time as any other person including millionaires so give it your best shot. GOOD LUCK |
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