What smart and safe options do you guys recommend for investing saved money so it works for you?

Real estate is the obvious one but it doesnt seem a realistic option due to the insanely high property prices where I live, could put down a deposit on a cheaper property (small apartment ect) but then I’d be left with a hefty mortgage and not sure how that would work.

Would it be worth it to leave it in a high interest savings account?

Everybody who lives comfortably always has multiple streams of income but finding a way to make consistent passive income without it being real estate is tough yo

D****, clothes, girls

You’re a wise man

Bro i wish i could handle money 😔 been making like 1k a month since i was 15 , couldve saved up sooo much by now, but i just cant help myself , when i got the money i have to spend it on dope s***

I feel you man, that’s why I wanna invest it just to get that peace of mind of setting up your future while still having fun

How much money we speaking of

Get an apartment with two rooms and get passive income from rbnb from one of those,while you live on the other.
Is that an option?

index funds

A good idea but it requires a lot of patience, 20 years worth of it

It's mostly useful to pay it off ASAP.
Then you have the luxury of selling it too

If you're from a s***hole country, that small apartment in the west is worth a whole retirement mansion.

Essentially they track the market, so you never largely outperform, but there’s also minimal risk of large losses

For example, the S&p 500 tracks the top 500 companies in America, so you would be invested in the 500 companies. It’s better to continually put into it and let it build through compound interest overtime. They are long term investments in sense that ideally you would use for retirement (imo)

But as always before you make any investment decisions, do a lot of research and see what’s best for you

Great point, thanks man!

If you're going for index funds, you need to consistently reinvest your gains into the funds.
That's how compound interest works.

So the more you reinvest the more returns you get consistently

Ah I see, thanks bro. So not something you’d recommend dumping the whole lump sum into for someone in their 20s looking to set up the next 10, 15 years?

Got you. Hence why it’s more geared towards benefiting you later in life?

I just mean it’s better to continually contribute consistently.

Depending on the brokerage you go with, they may have a minimum investment required to get started (for example $3000)

So how much you want to put into at first is up to you

Basic rule of thumb is you want at least 3-6 months saved Up to cover living expenses/emergencies just in case something happens (loss of job, illness, etc), also they say to make sure you have no or minimal debt

But I would definitely recommend researching a lot before making any decision

PersonalFinanceClub on IG is really good for beginners and is a good way to get an idea of what to do.

But also I’d recommend reading elsewhere as well, just so you get a wide array of knowledge on the subject.

Searching “index funds” will give you tons of information and help you decide on the best route to take

Thank you so much, really appreciate your help!!

Will give that account a follow and keep researching. Thanks again man. You work in finance or something or just really smart?

Haha I do have a background in finance but also I was in your situation awhile go trying to decide what to do with my money, and did a lot of research on the topic

Good looks. Forgot to ask, is it kind of “invest and forget” for index funds? Meaning can you usually leave the money tied up (investing more monthly or whatever) and expect to see profit long term? Or is it something you have to constantly manage and innately understand finance to make work?

And would you recommend just investing through an online platform or going to a proper bricks and mortar broker and having them handle that side of things?

Some of that might sound extremely ignorant lol, studying up now and will cop some books, find some podcasts and all that too

TFSA for now, reads books and practice investing before you try trading

For index funds, it’s more of a put money in consistently (For example, monthly if you choose) and forget about it

As far as brokerages go, the more popular ones people talk about are Vanguard and Fidelity (but there are many others), and you can do everything online with them.

And nope nothing sounds ignorant at all! Gotta ask questions to figure stuff out!

With brokerages it definitely helps to compare and contrast which one would be best for you

Really you want to look for one with no or minimal fees

There are a bunch of sites that do comparisons on various brokerages, some have breakdowns on brokerages best for index funds

Think nerdwallet did one now that I think about it

Just find a mutual fund paying 5-8% and don't touch that s*** for a few years

Much appreciated again my man thank you!

No problem fam!!