[Poll] What percentage of your net worth do you have in investments?

If i sell all of what i own and substract any debt, that would mean right now my net worth is in the negatives with student loan and all. Even if i find a job right after graduating, i need at least a few years to rid of that loan and maybe after that would i start to think about investment. Can't spend money that i don't have.

 

It hard to start investment when still trying to adjust to working life. Money tends to go with rent, food and life necessities.
Also, paying off some debt. Hope one day once I got a better job, I'll be able to do that

 

uhh i live in my granmama’s spacious basement.
i have 900 sq feet just for myself and pet anteater

 

It's gonna be pretty high for pretty much everyone...
Maybe what you wanted to ask is how much of our disposable income do we put into savings/investments?

 

Who would invest 100% of their wealth?
You need money for your daily needs lol

 

I've always wondered. do you take the MSRP (original release price) or the current prices to calculate net worth?

 

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Ideally you should be like @Action and have everything invested except like 6 months of living expenses/emergency.

 

Yeah... that probably would be better. I recently started having an income, so I didn’t have a very good sense what was the best way to think of it or ask it.

 

how does one go about investing ? is there a guide book or form i fill out to start ?

 

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Where do you invest? Financial instruments?? How?

21. Just starting to work. Net worth in green but not more than a grand.

 

i still living with my parents and since i don't have many expenses in foods and accommodation (and i already learn to limit my greed), most of my earning goes to my savings.

iirc someone said when you still in early 20s, it's better to saving around 10%-20% of your weekly/monthly income

 

Mutual funds, stocks, deposit certificates.... still trying to understand it better myself.

Was hoping someone else would know more. XD

Ah, I always knew it was important to save, but it wasn’t until a year or two ago when I realized that keeping excess money in your bank account (or even a savings account) doesn’t really count as saving..... it’s such a misnomer!

Since inflation happens, in reality you’re losing money every day that sits in bank accounts uninvested. >.<

 

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Well no that isn't how it works. If you have money in the bank earning interest, that could be used for food and daily needs while still considered investment.

The bigger issue is you still have things in your house that has value but isn't an investment. (like say TV)

You could have 100% investment if you don't own anything(your parents pay for everything and own everything) while you save money in the bank.

Well, start out by saving money from your income. That in itself is an investment, from there you grow your investment.

 

That is relative. You can get savings accounts that would offer higher rate than most short term CDs, particularly online savings accounts. For example, I get 1.30% on the online savings accounts (In comparison, Chase 120 month CD pays only ~1%)

 

This makes me think you are either really young, or really old

 

How?? Through brokers?

 

60-80% for me. Cost of Living (COL) eats up the last 20% so I can't swing 80-100% which is only really possible if you have an insanely high income with low COL.

Trick is to be super aggressive on paying things off and living a frugal as possible till you're no longer just treading the water on debt. Credit Card debt and student loans are money traps since if you're not paying them off ASAP they just grow and grow on you with the interest.Then again, doing so trades off 'life' for 'fiscal responsibility' which is hardly fun and what's the point if life isn't worth living.

Short term assets like petty cash or checking accounts should honestly have an approximate balance of maybe 1 month of expenses in it.

Short term investments are things like a Savings Account or Brokerage funds. These are things that tend to appreciate over time. Savings accounts do appreciate with interest, but the rate of return is typically below the interest rate so they net a negative appreciation. I'd suggest trying to keep 2-3 months worth of funds in a savings account and pile the rest into actual investment accounts. If you're planning for a large expense like a trip then you can allocate funds that would go into your investments into an expense allowance.

Long term investments are things like retirement funds such as IRA, Roth IRA, 401K, or CDs. Things that you can't touch till they mature or can't liquidate easily for cash. All long term investments should appreciate over time and their value is dependent on your rate of return vs the interest rate.

Long term assets are basically property of value such as land, vehicles, buildings, and high value equipment such as computers, TV, and appliances. All long term assets depreciate over time so they lose value while you hold on to them. The rate they depreciate are dependent on what kind of asset it is. The exception to that is land as land tends to appreciate as long as property value keeps up. Fun fact, once an asset has completely depreciated it is effectively worthless, so any worth or use you get out of it is pure value. Example: A computer may depreciate over 3 years till it is obsolete. However if you keep using it beyond that there's no harm and you make value. This is more commonly seen with cars as they have a depreciation rate of 5 years, but people tend to hold on to them with repairs and upkeep to keep adding value to it.

Spend wisely and manage the outflow of cash vs your inflow and you'll save yourself some headache. Also, avoid impulse purchases unless you have a slush fund for that.