I don't think it pays well where i live, would be only around $1/week
Best way to invest $5k? (Diversified)
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This is not financial advice, I'm merely sharing what I would do if I was in your position.
Cryptocurrencies are quite volatile but for me and many of my close friends they have proven to be extremely lucrative, the cryptocurrency market is still in its early stages too which makes it a great market to invest in, however, as you correctly stated - there's risk involved and the wider the spread of investments (e.g. in different markets and market sectors) the lower the risk.
I would personally put roughly $1,500 - $2,000 in crypto, it will very likely highly outperform most other investment vehicles in the 5-10 year duration. Bitcoin and Ethereum are quite safe bets if you're looking for lower risk and volatility; I would personally allocate 70-80% of the $1,500-$2,000 to BTC and ETH. The remaining 20-30% can be put into speculative assets such as XRP, ADA, XLM, SOL or others. Personally, I have high stakes in XRP, VET and ADA since those have strong fundamentals and a high possible upside.
This one might surprise you, but I would also invest roughly $500 in books and education. Reading has been one of the greatest sources of knowledge in my life and taught me more about life, psychology, finance and other topics than college. (I'm not saying college is useless, it does increase your job opportunities and income mobility tremendously, but since college is still quite far away for you I'd recommend reading/studying on your own.)
We're now left with roughly $2,000 - $2,500, assuming you're using my example allocations. I wouldn't recommend you to invest in individual stocks without any experience, an index fund such as the SPY S&P 500 or one of the other SPY market sector funds might be a good choice for you since those are tracking the top stocks of companies, which decreases your risk substantially. I personally have a decent portfolio in the biotech sector, mainly due to CoVid-19, however, biotech is risky since events such as a negative FDA announcement can impact your investment strongly. As aforementioned, try index funds due to the lower risks, I wouldn't recommend actively managed funds due to the management fees, if you're looking to hedge they're a viable option though. I would, personally, allocate $1,000 - $1,500 to index funds. REITs are also an option, deal with caution though and do your research before investing.
This leaves you with $1000 - $1,500. You should definitely save some of your money for rainy days, there can always be an unexpected event that requires cash on hand, and the last thing you want is being in a situation where you have to sell some of your investments. Try saving between $750 - $1,000, you can also save more if there's something you'll need in the near future, for example a car, etc.
If you're still left with some of your money, don't feel urged to spend it. If you don't know what to do with it then it's usually better to leave it then buying something you'll regret/end up not using - speaking from experience here. You could also try starting your own small business venture, you can start many great projects with very little capital, so don't invest too much since statistically most businesses fail within the first few years - especially on a place like mc-market.
I hope I could help you a little bit. Again, this is my personal opinion, you should make sure to read about everything I mentioned by yourself to form an independent opinion. The last thing you want is being depending on someone else when it comes to your finances, seek diversified knowledge - listen to both sides and draw your own conclusions.
Have a great weekend, God bless you - and good luck!
Cryptocurrencies are quite volatile but for me and many of my close friends they have proven to be extremely lucrative, the cryptocurrency market is still in its early stages too which makes it a great market to invest in, however, as you correctly stated - there's risk involved and the wider the spread of investments (e.g. in different markets and market sectors) the lower the risk.
I would personally put roughly $1,500 - $2,000 in crypto, it will very likely highly outperform most other investment vehicles in the 5-10 year duration. Bitcoin and Ethereum are quite safe bets if you're looking for lower risk and volatility; I would personally allocate 70-80% of the $1,500-$2,000 to BTC and ETH. The remaining 20-30% can be put into speculative assets such as XRP, ADA, XLM, SOL or others. Personally, I have high stakes in XRP, VET and ADA since those have strong fundamentals and a high possible upside.
This one might surprise you, but I would also invest roughly $500 in books and education. Reading has been one of the greatest sources of knowledge in my life and taught me more about life, psychology, finance and other topics than college. (I'm not saying college is useless, it does increase your job opportunities and income mobility tremendously, but since college is still quite far away for you I'd recommend reading/studying on your own.)
We're now left with roughly $2,000 - $2,500, assuming you're using my example allocations. I wouldn't recommend you to invest in individual stocks without any experience, an index fund such as the SPY S&P 500 or one of the other SPY market sector funds might be a good choice for you since those are tracking the top stocks of companies, which decreases your risk substantially. I personally have a decent portfolio in the biotech sector, mainly due to CoVid-19, however, biotech is risky since events such as a negative FDA announcement can impact your investment strongly. As aforementioned, try index funds due to the lower risks, I wouldn't recommend actively managed funds due to the management fees, if you're looking to hedge they're a viable option though. I would, personally, allocate $1,000 - $1,500 to index funds. REITs are also an option, deal with caution though and do your research before investing.
This leaves you with $1000 - $1,500. You should definitely save some of your money for rainy days, there can always be an unexpected event that requires cash on hand, and the last thing you want is being in a situation where you have to sell some of your investments. Try saving between $750 - $1,000, you can also save more if there's something you'll need in the near future, for example a car, etc.
If you're still left with some of your money, don't feel urged to spend it. If you don't know what to do with it then it's usually better to leave it then buying something you'll regret/end up not using - speaking from experience here. You could also try starting your own small business venture, you can start many great projects with very little capital, so don't invest too much since statistically most businesses fail within the first few years - especially on a place like mc-market.
I hope I could help you a little bit. Again, this is my personal opinion, you should make sure to read about everything I mentioned by yourself to form an independent opinion. The last thing you want is being depending on someone else when it comes to your finances, seek diversified knowledge - listen to both sides and draw your own conclusions.
Have a great weekend, God bless you - and good luck!
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This is actual good advice, gonna allocate it a little bit different tho, $2k stock market, $1k crypto (Not going to buy 100% in right now, everything is around a ATH, small dip now tho but still)
I already spend $200 on books and that is so much, i'm just going to read free online books now, books in real life are so expensive.
My stock portfolio is well diversified and with ETH & BTC i'm going to do 50% ETH & BTC and 50% for other alt coins with high potential.
Investing in some vanguard fungs and spy, and some invidual stocks, i'm doing it on eToro because i'm not located in the USA but i can invest in the US market.
I also have a skill, programming, so i can make money, so i don't need to learn something like programming anymore :tup:
I don't think it pays well where i live, would be only around $1/week
Find some friends who live near the city.
There is only 1 city where i live, i live on a island where the population is 150k :tdown:
