Invest into stocks or buy first car?

[sock]

You want a truck, so find something you can pick up for $1500/2000 and learn some basic maintenance yourself. With a truck your insurance will be better if it's stock and since it's not super dangerous. People telling you your insurance is going to be high didn't read the part saying you want the Titan. Insurance costs for young drivers are based on risk, obviousy it's higher when you're younger due to less experience, but the type of car plays into it heavily.

You should keep the rest of your money split between stocks and savings. I highly suggest getting into the market immediately, there is never a better time than the present. For me, I've been investing for years and I have both friends and family that work in finance... just ask questions and they're almost always willing to give some advice. It's easy to research stocks and you should find what you like to invest and pick some things out and learn it as you go. I started with $60... so you can start with whatever amount of money you have... I suggest the Robinhood app!

Lastly, find a job close to you. It'll save you on gas and time. If you have a car feel free to do uber, or do food delivery... because a lot of people are still staying home a lot more than usual still. Stick with those two income sources and invest and save, don't invest everything, but start investing as soon as you can. You will regret waiting. As for the people saying investing is dumb right now, you shouldn't listen to them. Since you're a first time investor this is the perfect time to get in! Things are finally on the rise again... buy low and sell high my friend.

Just a few weeks ago I dumped a bunch into airlines since they were headed straight down hill... picking up things like AAL (American Airlines) and DAL (Delta Airlines) at less than $10-15/a share. They've made such a recovery it's incredible...

Your dad seems like he is the most sound person to talk to though.

 

[Garner]

A lot of people here giving a lot of different advice so I'll give you this advice and I strongly recommend you take it.

Here's the thing you need to address.
What is gonna make you more money in the long run?

For me that's stocks. I choose to live without a car because I don't want that financial burden. I know if I put my bi-weekly pay check into the stock market in the long run I am going to come out with far more money.


Here's two more things you need to also address.
Stock Trading vs Stock Investing + Interest Rates/Dividends.
Taxes.

I have a few different portfolios for a few different reasons. For one I have a high dividend etf account that earns me about 5.4% interest a year + will gain around 27% in value once the market goes back up. Secondly I have an account I just trade REITs (Real estate Investment Trust) on, reits are a good way to invest in real estate without putting up the money your self + their dividend payout ratios compared to price are literally crazy. Reits are huge value stocks and I couldn't recommend them more. Their prices are super low which means your investment will rise 2x-3x once the market goes back up + you'll be earning a super sweet dividend. Lastly I have a portfolio for options trading, though for your current situation I wouldn't recommend.

The other thing you need to keep in mind is taxes. If you sell stock for a profit within the first year of buying it that income is taxed at your normal tax rate. If you sell stock after a year (365 days) of owning it then you're only taxed at 15% since it's long term capital gains. So for example, if you invested $3,000 into reits your likely return in 2 years would be around $6,000-$7,000 + earned dividend income. Basically means you'll be left with $5,100-$5,950 after taxes.


With everything taken into account I personally believe stocks may be the better option and I'll explain that with math.

(lets just assume that you can get a decent car for $3,800 and wont have a car payment)
Car Insurance $150-$200 x 24 Months = -$3,600-$4,800
Uber for 24 Months = -$5,000~

Stocks for 24 Months = $5,100 - $3,000 = +$2,100.

See the issue? Any way you do the math your return on stocks after two years will always out weight the inconvenience of the extra cost with using Uber. Even at the maximum possible loss with the figures given $5,000 - $3,600 = $1,400. $2,100 - $1,400 = $700. Still left with $700 profit.

Obviously the math on this isn't perfect, I would recommend constantly investing more and more money to get a higher return over time but with a factor of $3,000 put in and doing nothing you will still be up at a minimum $700 + you'll have an additional $800 in your pocket that you didn't spend.


If you have any questions feel free to message me, I would also love to help you pick out some stocks if that's the route you choose, thanks!.[DOUBLEPOST=1592165210][/DOUBLEPOST]One thing I didn't mention is life.

Things happen, your car will break down, you'll have unexpected things to pay. That only adds to your cost of owning a vehicle.

 

[OwO]

As a r/WallStreetBets user I have to say
STONKS ONLY EVER GO UP

 

[Harrison Sawyer]

So I talked to my parents, unemployment had a glitch so I will likely get some more money, that being said, I plan on getting the car I want on my bday in 3 weeks and then investing a lot afterwards, ideally this should work out lol unless unemployment messes up again..

 

[Clyde]

Find a cheap and reliable car/truck that is <= 2000.

Use the rest in stocks wisely.

That’s what I’d suggest at least. Not only would you have a means of transportation, but you’d also have an cash flow on the side (This is assuming you manage your stocks wisely, or at least decently).

 

[YosemiteOG]

All these people telling OP to invest into stocks, buy a car, etc... facepalm

Put all that money into a Minecraft server!!! make x10 profit back

 

[Grace.]

All these people telling OP to invest into stocks, buy a car, etc... facepalm

Put all that money into a Minecraft server!!! make x10 profit back

ikr man he could just give it to me and get 4x his money ez pz lmn sqz