Should I be investing some of my income? (Crypto, ETFs, stocks etc.)

[leonft]

Hey guys,

BTW I am not asking for financial advice, just wanted to hear your thoughts

I'm starting to make some income off my business, nothing crazy, but for my age (16 yr) it's not too bad and much better than working at a fast food chain.

I am definitely making more than I spend and my bank account is growing each month. But what I've read is that, especially during the current economic climate, you should be investing a percentage of your income each month and DCA.

It sounds like a good idea on paper, especially since it seems like a waste to keep money in my bank, while the value of it slowly decreases.

I have dabbled in the crypto space last year, but only lost money. I've never invested in stocks and less keen to, since I don't really have enough money to make that worthwhile and would have to get my parents to make me an account (with crypto I can open one myself).

So with that being said, my current plan is to invest monthly, with 10% of my entire capital, into Ethereum (ETH), as it is one of the only cryptocurrencies I believe in and one of the safer cryptos. Also if I'm DCAing then I don't need to time the market so much.

Another option could be to invest this 10% into tech ETFs or the S&P 500... but idk

Let me know your thoughts and your personal experiences with this,

Thanks so much!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MTF]

If you're 16 and making money, I assume you aren't making five or six figures a month so I would save this money and use it either to fund your business or to spend it on useful education (books, courses, coaching).

 

[heavy_industry]

Every bit of cash that's not invested in something gets eaten away by inflation. Investing is not limited to buying financial assets, since you can also invest in items or services that improve your quality of life and earning ability.

 

[leonft]

If you're 16 and making money, I assume you aren't making five or six figures a month so I would save this money and use it either to fund your business or to spend it on useful education (books, courses, coaching).

Yep that definitely makes sense.
I can pretty much just reinvest most of the money I make back into my business

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MJ DeMarco]

GOLD! - MINDSET - The final solution to all "I have some money what do I do?" threads.

It was definitely the most potent idea of Rich Dad poor dad, but it really didn't sink in until I read TMF because it was explored outside real estate in such a comprehensive way. It all boiled down to the answer to this one question... We see it on here all the time: "I have a thousand...

www.thefastlaneforum.com

If I were starting over, I'd put 100% of my money into my business ventures as those are capable of asymmetric returns.

If you truly can't do that, I'd stick with dividend stocks, or an indexed fund like VOO or VTI.

Unscripted has more information on how to build a money system.

very bit of cash that's not invested in something gets eaten away by inflation.

Sometimes that's better than losing 22% in the market. Inflation is 9%.

People get so worried about inflation, then lose 30% in the bond market, or elsewhere.

 

[The Sandman]

+ note the value of having liquid capital to take advantage of pressing deals.

Keep an eye out for excellent opportunities. The great ones often go quick. Don't "invest" in a business, including your own, just because you have cash sitting around. Each investment should have an expected return.