Investing small amounts

Az0th

Hi

I am interested in getting involved in investing.

I am a poor college student so can only realistically put away very small amounts for the time being (€5 - 25) per week.

I would have the following goals

1. Learn about investing and develop it as a life skill
2. Develop the habit of investing
3. Build a small portfolio.

I have yet to find a way to invest such small amounts but If there is such an option then I think it would be worth my time and money to get involved. Im hoping if I get started with small investments that over time it will develop into something larger.

Any advice would be appreciated

Yours sincerely

Az0th

DarkDusk

Read this reply I made a few minutes ago: http://www.boards.ie/vbulletin/showpost.php?p=81342318&postcount=9

Silver is a great investment for people with not too much cash on hand. You can buy 1 ounce for 30-35 euro depending on where you look. There are people selling silver on Adverts.ie, so that's worth a look. The best way to start accumulating silver is by buying silver bullion coins such as the Silver American Eagle or the Canadian Maple Leaf. So, you could set aside money to buy 3-4 coins a month, which is the recommended to buy, instead of going a "all in" at once.

Good look with your investment!

Az0th

DarkDusk wrote: »

Read this reply I made a few minutes ago: http://www.boards.ie/vbulletin/showpost.php?p=81342318&postcount=9

Silver is a great investment for people with not too much cash on hand. You can buy 1 ounce for 30-35 euro depending on where you look. There are people selling silver on Adverts.ie, so that's worth a look. The best way to start accumulating silver is by buying silver bullion coins such as the Silver American Eagle or the Canadian Maple Leaf. So, you could set aside money to buy 3-4 coins a month, which is the recommended to buy, instead of going a "all in" at once.

Good look with your investment!

Thanks for the advice

I have been looking up more information and it seems like a good way to get started.

I have searched a few sites and they either hold your silver (€bullionvault charges minimum of €4 per month which is a lot for my small investment) or have high shipping costs.

Any sites you would recommend?

Jim2007

Az0th wrote: »

Hi

I am interested in getting involved in investing.

I am a poor college student so can only realistically put away very small amounts for the time being (€5 - 25) per week.

I would have the following goals

1. Learn about investing and develop it as a life skill
2. Develop the habit of investing
3. Build a small portfolio.

I have yet to find a way to invest such small amounts but If there is such an option then I think it would be worth my time and money to get involved. Im hoping if I get started with small investments that over time it will develop into something larger.

Any advice would be appreciated

Yours sincerely

Az0th

There are many aspects to managing your finances, investing being just one of them! I would suggest that you start by learning the habits of budgeting and saving. The better you manage your budget the more you can save.

Your first objective is to build up a 'rainy day' fund: based on your budgeting above, you should try to save up enough money to cover say 3 to 6 months expenses. This is an important first step to investing, because investments take time to mature and the last thing you need is to have to liquidate your investments early because of a cash shortage.

And while you are doing all of that, spend your time learning about investing: learn about the different asset classes such as shares, bonds, property etc... portfolio management and most importantly risk management. Given your limited funds I would suggest that the best way for you to go about building up a reasonable portfolio would be to look into ETFs.

Az0th

Jim2007 wrote: »

There are many aspects to managing your finances, investing being just one of them! I would suggest that you start by learning the habits of budgeting and saving. The better you manage your budget the more you can save.

Your first objective is to build up a 'rainy day' fund: based on your budgeting above, you should try to save up enough money to cover say 3 to 6 months expenses. This is an important first step to investing, because investments take time to mature and the last thing you need is to have to liquidate your investments early because of a cash shortage.

Good advice

My current budget has taught me a lot about budgeting and saving.
I live at home and my current income averages €120 weekly (can vary from week to week but any extra goes to cover a bus pass).

Weekly expenses are €80 for college fees and €25 for food. This leaves me an average of €15 left over.

3-6 months expenses for me would be around €1,200 - €2,400. Perhaps over the winter when I have more hours free to work I can make enough to cover this.

Jim2007 wrote: »

And while you are doing all of that, spend your time learning about investing: learn about the different asset classes such as shares, bonds, property etc... portfolio management and most importantly risk management. Given your limited funds I would suggest that the best way for you to go about building up a reasonable portfolio would be to look into ETFs

Are there any books or websites you would recommend to learn more?

Jim2007

Az0th wrote: »

Are there any books or websites you would recommend to learn more?

Well you could start with one called "Rich Dad, Poor Dad", it is widely read and you should have no problem picking up a copy at a second hand book shop.

Az0th

Jim2007 wrote: »

Well you could start with one called "Rich Dad, Poor Dad", it is widely read and you should have no problem picking up a copy at a second hand book shop.

Currently 40 pages in, very enjoyable read so far.

willietherock

Az0th wrote: »

Currently 40 pages in, very enjoyable read so far.

The author has recently declared bankruptcy.
Check out index investing. Something like John Bogle's Commonsense Investing. It gives a framework for the individual investor to invest for a lifetime through low cost etfs. The problem with investing small amounts in Ireland is the cost are too high and you end up losing a too big percentage of your initial investment in costs. You need to lump sum invest, say once a yr, with an amount big enough that the cost as a percentage is v small. As an aside I see in this wks Sunday Times Rory Gillen has a new book aimed at the individual investor.

martyoo

The author has recently declared bankruptcy.

That's not true. One of his companies has folded. That lad is far from bankrupt. More morally bankrupt

Kiyosaki’s Rich Global LLC filed for bankruptcy after being ordered to pay nearly $24 million to the Learning Annex and its founder and chairman, Bill Zanker.

daveirl

This post has been deleted.

Az0th

Hi guys

Almost finished "Rich Dad, poor Dad"


Any other reading people would recommend as I practising trading with a free account is a good idea but I wouldn't have the faintest idea what I am doing.

Im not sure how spread betting would work for a market. (I know how it works at the bookies but googling how it works in finance made me more confused )

Roonbox

I would recommend 'Hot Commodities' by Jim Rogers...

turbobaby

I would recommend The Real Crash by Peter Schiff. I would also recommend you listen to some of his stuff on YouTube.

willietherock

Az0th wrote: »

Hi guys

Almost finished "Rich Dad, poor Dad"


Any other reading people would recommend as I practising trading with a free account is a good idea but I wouldn't have the faintest idea what I am doing.

Im not sure how spread betting would work for a market. (I know how it works at the bookies but googling how it works in finance made me more confused )

willietherock

btw check out post 197 on the " Interesting Articles/Videos/Presentations" thred. It contains a link, 2 yrs old, to Elements of Investing" a great book for all investors.

Az0th

willietherock wrote: »

So what is it because this is all I found searching online?

http://en.wikipedia.org/wiki/Spread_betting#Financial_spread_betting

willietherock

Az0th wrote: »

So what is it because this is all I found searching online?

http://en.wikipedia.org/wiki/Spread_betting#Financial_spread_betting

Spreadbetting is Gambling. Trading is a mugs game unless you have an information advantage over the competition big enough to cover your costs and still some.

Az0th

willietherock wrote: »

Spreadbetting is Gambling. Trading is a mugs game unless you have an information advantage over the competition big enough to cover your costs and still some.

Ok

I am confused as to why it was mentioned to me but I will check out the other resources that have been recommended to me.

neil.p.b

willietherock wrote: »

Spreadbetting is Gambling. Trading is a mugs game unless you have an information advantage over the competition big enough to cover your costs and still some.

willietherock wrote: »

OP,

You firstly need to differentiate between investing and trading, here's a pretty basic overview of the two:

http://www.investopedia.com/ask/answers/12/difference-investing-trading.asp#axzz2ANFKYlxU

It sounds like you are new to the market so you've got a big learning curve ahead of you. Once you've decided on which path you'd rather go down (investing or trading - and then what type of trading), i'd start reading as many books as you can, mock investing/trading, watching market movement and financial news daily whilst you accumulate a lump sum of money to start with (few k). This time next year you might be making your first proper investment/trade.

Az0th

neil.p.b wrote: »

OP,

You firstly need to differentiate between investing and trading, here's a pretty basic overview of the two:

http://www.investopedia.com/ask/answers/12/difference-investing-trading.asp#axzz2ANFKYlxU

It sounds like you are new to the market so you've got a big learning curve ahead of you. Once you've decided on which path you'd rather go down (investing or trading - and then what type of trading), i'd start reading as many books as you can, mock investing/trading, watching market movement and financial news daily whilst you accumulate a lump sum of money to start with (few k). This time next year you might be making your first proper investment/trade.

Investing sounds the better option. Im young so time is on my side and I can slowly build up what I have. Plus it appears to be the safer option and gives me less rope to hang myself with. It also looks like it requires less attention to markets.

Az0th

Would anyone have any more recommendations for any more books or websites.

I have been searching investopedia and while it's articles are very good they do not seem to have advice for people who are brand new to researching a stock.

bridgepeople

Az0th wrote: »

Would anyone have any more recommendations for any more books or websites.

I have been searching investopedia and while it's articles are very good they do not seem to have advice for people whoa re brand new to researching a stock.

You can't really go wrong with the Intelligent Investor by Ben Graham. Security Analysis (also by Graham) is called the investor's bible, but Intelligent investor is more approachable for a beginner.

If you google 'Buffett letters', you will find Warren Buffett's annual letter to Berkshire Hathaway shareholders. They are free to access and will take you a long time to read! That's the best investment advice you will find online.

Buffett's first rule of investing is don't lose money and number 2 is not to forget number 1. No investor should ever forget those rules!

I would also advise you to google 'discounted cashflow model' and try to understand the concept. In finance theory, all investments are ultimately worth the sum of the future cashflows they generate. As silver generates no income (e.g. rent, dividends, coupons), it is extremely difficult to value and as such I would not recommend it for a novice investor (or anyone who is not an expert in that market!)

Good luck!

get_even

bridgepeople wrote: »

You can't really go wrong with the Intelligent Investor by Ben Graham. Security Analysis (also by Graham) is called the investor's bible, but Intelligent investor is more approachable for a beginner.

If you google 'Buffett letters', you will find Warren Buffett's annual letter to Berkshire Hathaway shareholders. They are free to access and will take you a long time to read! That's the best investment advice you will find online.

Buffett's first rule of investing is don't lose money and number 2 is not to forget number 1. No investor should ever forget those rules!

I would also advise you to google 'discounted cashflow model' and try to understand the concept. In finance theory, all investments are ultimately worth the sum of the future cashflows they generate. As silver generates no income (e.g. rent, dividends, coupons), it is extremely difficult to value and as such I would not recommend it for a novice investor (or anyone who is not an expert in that market!)

Good luck!

both silver and gold are purely speculative buys , thier not investments in the common sense of the word , yes , they have always had a value and will always command a value but thier is no reason why silver and gold couldnt fall by 50% ( or more ) in the next five years , none , the liklihood of coca cola or volkswagon falling by that amount is slim to none , bar a repeat of the market meltdown in 2008

Roonbox

get_even wrote: »

both silver and gold are purely speculative buys , thier not investments in the common sense of the word , yes , they have always had a value and will always command a value but thier is no reason why silver and gold couldnt fall by 50% ( or more ) in the next five years , none , the liklihood of coca cola or volkswagon falling by that amount is slim to none , bar a repeat of the market meltdown in 2008

I couldn't disagree more.. With individual stocks anything can happen because you are relying on numerous factors including a competent management team.

Precious metals offer protection in an environment where Central Banks have the printing presses on full speed.

I get your point and I agree that some blue chip names like Coke are more stable. But your info on Gold is way off base.

turbobaby

get_even wrote: »

the liklihood of coca cola or volkswagon falling by that amount is slim to none , bar a repeat of the market meltdown in 2008

Bit of an oxymoron there!