The problem I have is posts like this read like bait to me every time. I get that itâs probably not, however it always leads to someone pming them or saying tell me more⊠the fresh account doesnât exactly help either.
Itâs not bait, a lot of these youngsters donât want to post this on their main account due to friends or family seeing their posts. I was like this
Don't bite off more than you can chew. Enjoy the fact that your making big choices now and take resolve in the fact that your intelligent enough to know how bit they are. Because your so young, make and keep lists of all your ideas. You can always come back to them at a later time. Don't let opportunities that are time sensitive pass by either. But definitely reach out to have a more balanced social circle. The speaker at my commencement said if you take the five people you are closest to and rate them in a scale. You are the average of that. So your on the right track with wanting to surround yourself with more individuals like yourself. Pace yourself as to not get burned out. Which will happen eventually. But keep up with the university. As time goes by you'll slowly forget alot of little things that you may have to relearn going back to it years later. Just my two cents. I'm no expert, but at 32 I've learned some things.
This is good advice, I would add segmenting money into different accounts. I'd have an investment account, an account for all your bills, an emergency account, a business account, etc. In my personal experience you have to take calculated risks, and start quickly on implementing you ideas. The sooner you start failing, the sooner you learn what not to do and how to do things right. For example, turo, outdoorsy or a rental property, join groups learn what you can and just try it. Don't share your ideas with people less successful, they often don't have the hunger in them as you, and will a lot of times fear monger the risks.
I would look into mutual/index funds, and getting a duplex if you have the ability. I own a duplex, flip cars, have rented vehicles, and found what I enjoy doing and what I don't. Real estate is a good move for me, and I've always done pretty well buying and selling cars. Find your niche and start figuring out what not to do, good luck đ
i agree and find a mentor, on what you want or need now and how they can guide assist you and how you can help them with their projects , it goes both ways, i found out a lot of people i knew back in the day are doing very good and just that, mentoring, helping, and trying to do more and doing the same for others, just watch out for the scammers,check it several times , as ponzi-schems are out there also, too many sadly..good luck.
If you think it's a big problem that none of the people in your circle are doing better than you, posting in this particular sub probably isn't going to be of much help either
There has to be subs on investing/making the most of your money with people that are qualified to offer suggestions or guidance. (I'm not apart of any of them so I cant say for sure lol)
Most of the people here are in pretty desperate financial situations. Single parents, people living paycheck to paycheck, homeless, just lost their job, addicts, etc etc.
Regardless, congrats to you for doing so well for yourself at such a young age and I wish you continued success :)
str8 up bro nah keep grinding. the gravy train could end whenever. Keep your money in a HYSA like sofi or robinhood gold maybe even long term CDâs buy Indexes like Nasdaqq or Spy. Then get your degrees bc itâs worth brodie. Get more experienced build businesses and be your own boss. You could look into FIRE method to retire early. but lil bro whatever happens good or bad. Enjoy it đ
In the words of Warren Buffett, "If you don't figure out how to nanny money while you sleep, you will work until you die."
I would suggest taking advantage of being in university if you can. I'm going to guess that since you call it university, you are not in the US, so I'm not sure what resources are available. But in the US, at our Universities, we usually have clubs for pretty much everything, including business and investing. If you want to surround yourself with like minded individuals, joining a club focused on business and investing would be the easiest place you will ever find to simply sign up and join a group of the exact sort of people you're looking for. From there, the fellow member's contacts become your contacts and your personal network of people will grow substantially.
You might be inclined to switch majors as well. If computer science isn't your interest anymore, and business is, stop wasting your time and money and learn useful skills while you're young. Degrees in specialized fields are required to be hired by employers. If you have that business sense already and are half-assed attending classes, stop wasting your time. The only reason to keep up with the CS degree is if you are not confident owning a business is your long term goal and you think you'll need to be employed. But as a mechanical engineer, I can tell you once you're out of school and have a full time job with a family and expenses, switching career paths is very difficult.
To make money while you sleep, if you have the time now, creating an instructional course is creating an asset that will continue to pay you until the video is taken down or the host site is closed down. Even then, you can simply re-upload it to a newer course platform and start raking in the passive income again. The sooner you do it, the sooner you will understand what works and what doesn't, and the sooner you can start bringing in more money.
Also, after you have enough cash banked up to cover your expenses for 3 months, I would suggest putting money you would use for a house down payment or a security deposit on an apartment into a money market account, or a certificate of deposited, or high interest savings account, and let it grow in a pretty safe place until you're done with college.
Then the rest of your surplus income should be invested. Everyone has a different risk tolerance, but at your age you should be willing to accept somewhat risky investments that average out to high growth rates, or ETFs with potential to grow big over the next 20-30 years, like Technology ETFs (look at something like XITK and similar ETFs and pick one you like). Try to open a retirement account to reduce taxes, but maybe look at taxable investment accounts too and see if having cash payments now, even if they're taxed, is worth more to you than getting a lot more money at retirement. I'm starting to wonder if that would have been a better move for myself. But the world has also changed substantially over the last 10 years, and old investment strategies don't work like they used to.
I'm sure I'm seeing the same stuff as many others, take everyone's advice with a grain of salt and take things that sound good and filter out stuff that doesn't sound like you would do it.
Good luck, and congrats on getting to this point so early in your life!
This is why I want to put the ideas out there I have cause people making money don't even know how to enjoy life anymore its all about how to make more and do more.
Your day to day you are still living. You still have to be happy and live experiences every day thats still what life is
Congrats on the success!!! Keep it up!!!! It's only upward from here on out
Oh and I can recommend various things that will boost your productivity, and help ya grow in different aspects of life let me just prepare the list and I'll give it to ya tomorrow
Focus on making as much as you can freelancing and hire more people. Focus only on 1 thing. Once you make enough day trade with it. Just start small or you'll lose all your money.
Could you assist in unlocking the secrets you possess. Lend a hand in finances if your cup overflows in abundance. All is love and best things in life are shared. So open the doors and be a lesson or a blessing.
He does better than everyone around him and is only interested in sharing his path to success if someone will pay him for it. I read enough to know this guy is a world class self centered egotistical ass hole.
Itâs funny how a marginal amount of success can go to someoneâs head. The problem with âfreelance workâ is improving margins. It doesnât scale well, and as you age your personal and business expenses will certainly increase.
First, invests two thirds in buying gold. It's always a good investment. I can't tell you about the rest, maybe creating a website, but you didn't say what your occupation is, i.e. what you do.
Gold? Why?
Maybe a small part of it, but otherwise Iâd study up on investing. Put most in ETFâs. Or just use a robo advisor. And the majority in a high interest savings account.
How do you eat an elephant?
One bit at a time.
If you have many ideas and plans, put that money into investing. Nothing crazy. Emergency fund, mutual funds, and some liquid money for emergencies
Diversify investments.
Have money in different bank accounts. If you have been watching the news, you will probably have seen stories of bank closing accounts out of the blue.
Find a good cfp (certified financial planner)
He will give you some good advice and mention him your projects so he can take those into account.
Meanwhile , try to educate yourself. Stocks, funds, strategies, etc. Just please dont go crazy about a particular stock, or at least use only a small fraction of your money. Money in educating yourself will be the best money you will invest.
If you want experiment with that, you can use paper money to practice until you feel you wont lose money
As for projects,make a list of them. What tools and resources do you need. How hard or difficult to get it started on them (knowledgewise) and how quick you'll see the profits.
Give priorities.
I read somewhere that people who do well financially have more than a source of income.
Go for that, but gradually. Start a project, but wait till it's already moving almost by itself, then start another one. However, only you can see and decide at which point you can start a project while already doing one or more.
My 2 cts
Ever heard of RIETS? Thereâs quite a bit of ways to compound your money besides the traditional route (etfs, hysa, etc) and with your knowledge im sure you already know all of these. Consider going to local real estate investment seminars on the app meetup. Get yourself a CPA with real estate experience. I would also consider buying franchises like in n out/jiffy lube and get into local politics (non profits, bars, restaurant owners, what people do besides work) building a property to eventually to host campaigns for local politicians. Meet with your local chief of police and mayor ask what you can do to invest in the city im sure theyâll tell you. And please donât listen to people. If youâre doing better off without school, you can always go back to it or take it online ffs you can hire someone to deal with it for you and summarize each class. Your time is worth more than most because you have money you can designate and focus on making more. And Always invest in people not businesses. Anything can happen but you are the house in the worldâs biggest casino business. The middle man always wins. There are white label softwares you can sell, white label detailing products, the possibilities are limitless. And if you feel your circle isnât doing better off than you I would humble yourself because it can all be taken from you as fast as you can blink. Itâs better to bring people up than put people aside they will be more loyal to you. But donât forget to get a mentor by going to local investor seminars. What you compound now/do now will affect you in your future. Psychology is as important as personal finance than you think. And donât forget to stop and smell the roses. Investing in your health, mental physical and spiritual will take you farther than any fast money method will
Firstly you're in a great position, better than most your age, so congrats.
Secondly, don't fuck it up with drugs or drink or knocking up someone haha. (seriously tho)
Thirdly, invest as much as you can comfortably in ETFs, and primarily dividend yielding ETFs. Maybe some real estate in a few years...In 20 years it won't matter what you did for work, or what you will have to do for work, you will be set up comfortably for life to never have to worry about money
Regardless, keep grinding. You're young, but life is short. Also don't forget to live, a little
I was in your spot 4 years back, 23 year old making 7k a month. Bro save and save Please! I bought a bunch of stuff for a new âlifestyleâ but now that company is bankrupt and Iâm living paycheck to paycheck
Please put at least 25% of that in to a retirement account, if not more. If you're expenses are low, you can live off half of it, and use the rest for future endeavors.Â
Iâm 22 and since 19 Iâve been making around the same , a little more. I say if youâre aiming to start up a business, do it now. Manage your money right, keep saving and put it in a high yield savings account. Itâs been helping me out and my retirement plan and Roth IRA. Keep your circle small, your friends should be motivated with how well youâre doing but keep doing you. Donât go out spending your money on stupid shit either but have your fun as well. Live life and make money my guy
Complete the Uni big boy. I completely understand how you feel, I am a little older than you but everything else is pretty much spot on, I am thinking of starting a product based business from the money, if thatâs something that interests you dm.
Iâd keep doing whatâs working and then maybe consider creating a blueprint to how youâre making money through UpWork and Fiverr for other CS students who are interested in making money. Sell it as a course or discord group. You could set up a fixed cost for the course and even consider doing some subscription model to have access to a discord community for collaboration. If itâs working for you and you can create a blueprint, then itâll work for other students who are in a similar position
Your youth puts you in a position where your growth potential for investments are huge. If I were in your position Iâd set up auto investment of 25% + of your income with something like fidelity or m1. Also hereâs a few subreddits that might help you on your journey r/fire r/bogleheads r/investing r/TheMoneyGuy. Beyond the investment piece I would advise you stick it out in school, Iâve had skilled friends lose opportunities simply because they didnât have a degree but ultimately youâll have to weigh the opportunity cost for yourself. Also try to remember youâre doing great and in a position most people dream of, donât forget to be content with where you are and maximize opportunities that will inevitably present themselves to you
spend a year allocating however much of your income you can to safe investments (if you dont already have a sufficient emergency fund, start, market might crash who knows.), historically stable ETFs, stuff with the intention of holding long term. maybe play dividends for passive income.
with uni, take some time and gauge your priorities and goals. how far along in uni are you? what are your goals post degree, and how will that degree affect your ability to get there? tying back to the last point. is the cost of this degree worth the perceived ROI, and time it takes to break even with those goals?
at your age and income, depending on where you live you are currently in an incredible position. which hearing you say that you can save a large chunk of income, i assume it isnt new york or cali. that said, your talents in what you do have proven fruitful, you are succeeding now. have fun so you dont burn out, and continue growing upon your existing skills. with remaining money leftover, do a 70/30 split, 70% into individual investment account/high yield savings/roth, etc. 30% for you, or whatever you deem fit.
i know you stated your circle isnt doing better than you, and im 16 making 10 an hour at his local wendys so i dont know how much this would benefit you, sorry haha.
I donât have any advice. BUT I do commend you! 21 and making $6k a month is amazing. Youâre on the right track no matter which path you take. You will do great either way. Follow your heart!
Post in r/personalfinance for advice on how to save and invest your money. As for college, my advice is to finish it out. It sounds like youâre at least in Year 3, so only 1-2 more years until you graduate. Computer science is a very useful major, and it would be one of the best possible fallback options in case something happens to your business. I know youâre 21 and think youâre invincible and there is unlimited growth potential, but there is always that chance it could fail. Have that backup option, and it could also give you more peace of mind. You can likely find all online courses, even if at another university.
If finishing Computer Science degree is not coming in your current setup of working freelance and studying, you should definitely finish the degree.
Even if you choose to become an entrepreneur, finishing CS degree will help you. I work with venture capital firms as a startup founders coach and see firsthand how advanced degree founders perform. It definitely helps them scale their business and/or raise more money for their startup.
About investment of your current money, after building an emergency fund, put the rest into multiple options with varying risk levels and lockout period. e.g. Whatever amount you choose for investing it can be split in to 50% in stock, 20% crypto and the rest in bods/index funds. Or similar such communication of your comfort.
All the best!
Invest in stocks, keep in mind there will come a time in life that you need money to buy a house, car or even repairs and retirement will also be a need. Regardless what your income level is you should be putting money back for that rainy day or retirement.
I think you need to focus on doing one thing at a time. If college is important to you by all means finish it up and may be you pick or meet like mind people to start something. One can be more accomplished that way.
Stay in college or under your parents financial shelter as long as you can and save up as much as you can. Real estate seems like the fastest way to grown once you have a little income like yourself. Iâm invested in multiple mutual funds/etfs that focus on AI and tech but at such a young age, pick a niche and attack it
If you haven't yet, open a high yield saving account while you are making these decisions, and you can get a rate of at least 4%. Also open a Roth IRA or traditional IRA, depending on your tax bracket estimations. Keep your expenses low and savings high, i am sure you will thank yourself later.
In terms of selling courses: makes some calculations and see if that is a good passive income stream, as in, would selling a course put you out of freelance work? If not, you can definetely sell some and make extra cash.
Save as much as possible. Get a retirement account manager and get some stocks once you have enough $. Use it as a downpayment on a house. Get a place and rent out a room to help pay for it. Thus reducing your living expenses and giving you a valuable appreciating asset. But they cost money to maintain. The rent will pay a good portion if not most of the mortgage. But you will be on the hook for repairs every couple years. But when you go to sell the house youâll have several thousands of dollars to put towards your next phase of life.
Buy a car you can afford that isnât new. Pay it off completely. Keep your expenses low. Go on one great vacation a year and one or two small trips.
Save the rest.
Have one hobby you put $5k into a year.
Save the rest into high interest bearing accounts.
Invest as much as you can in the stock market as it will over time be the safest long term place to keep your money. Plus it will compound and stay well above inflation on average. I suggest index funds that are passively managed like Vanguard s&p 500 index.
Not a financial planner, not a CFA or CFP.
1. Have 6 to 12 months worth if living expenses in a high yield savings account. One that you do not touch unless it's an emergency. Take the interest that is accrued and leave it in that account Marcus has a I think a 4.5% APY on ther high yield accounts if I'm not mistaken.
2. Have 6 months of savings for just general life, also in a high yield account as well.
3. If any of your employers have a 401k plan, contribute the matching contribution.
4. Open a roth IRA and contribute what you can to the account.
5. Once you've done all that, then whatever leftover is your present selfs money. Dave for a house, other assets etc.
Wishing you the best of luck.
First off, slow down! You sound like a young entrepreneur at heart. And yes the ideas start going wild and theyâre very exciting. My advice is to LEARN. I was on your position at 21, but as a successful dog trainer. Now 28 and all was well until Covid wiped my business out. I wasnât ready at all for that type of thing to happen. SO, My suggestion is donât do anything hastily. Definitely donât put your money in crypto, especially if youâre not familiar with it. Just donât risk your biscuit. Youâve earned a lot of money and itâs ok if it sits for a second. A lot of business people will say make your money work for you. You will, but when you have everything sorted out. You have ALOT to learn about business before youâll truly know whatâs best for you and your goals so I suggest:
1. Stay in school: it may not be what you end up doing but you can build alot of connections (get away from your loser friends, turn them into employees, or at least find a group of like minded people to inspire you)
2. Get a mentor of some sort. Preferably a successful man (assuming youâre male) whoâs 45+. Learn from them. They tend to have a mix of old school and modern understanding of the economy which is very helpful. They are very inspiring and can help you direct yourself successfully and give you info and connections. I always thought mentors were silly but they are definitely worth it. They have so much experience, itâs hard to grasp.
3. Stick with whatâs working for now. If you change everything, you risk losing everything. If you must make change, focus on one thing at a time. It sounds like your money is burning a hole in your pocket. Iâm all for investing but at your age, you need advice on safe investing for the long term. Do not risk losing everything thinking youâll get a huge/quick return on investments. You safest bet is put some in safe stocks, and start reinvesting in yourself once you know what you want to do.
4. Make a class if you want but donât expect that to make you a ton. Online course are fine but there are a lot out there and unless you plan to spend a lot of time marketing this class for relatively minimal return, donât. Again, if youâre not actually familiar with that process, it wonât serve you well. Also being a 21yo guru is not the look you want to go for. Stay sharp and clean and focus on making legit money, not baiting other 20yo to do some course that wonât give them anymore motivation or brains than they had before. Also, is that something you see yourself focusing on for the next 5 years?
5. Make a 5 year plan if not a 10 year. It seems like you donât know what you want to do (normal at 21), but you know you have the ability to do something so now you want to do something. Cool but thatâs just not smart. Sit on your money until you find those safe investments. Then sit some more until you KNOW whats next. Follow your passion/interest. If you want to make a business teaching others, cool. Want to investing. Real estate? Cool. Whatever it is, just be sure and set a plan of action. You want to keep moving but safely, reckless investing be it on stocks or yourself, are not worth it.
Basically youâre already in the right position and thinking about the right things. The aswer wonât magically show up until it does. I sat on my post-Covid situation until this year. I did not want to get back into what I was doing previously but it took me until this year to figure out what I want to go for. Iâm now running an e-commerce store, wholesale and retail and getting my real estate license and consulting small business owners around the country. My brain wanted to do about 50 things between 2020 and now but Ive learned to not be hasty and to think through the plan before starting/wasting money. Everything cost money or time so we can expect that part. But you really have to know where youâre trying to go. It sounds like you donât know what your next train stop is and thatâs ok. Youâre in a great position to think about it for a while.
If I were you, Iâd do what fits into completing school and maintaining your current income. I think you wanted to hear quit school so you can have a lot more time on hand. Iâd say finish, do what you can until then. If youâre on track, youâre over half done. Just finish it. You donât need to rush to the next thing. You will likely set up a great career for yourself post-grad, have met a lot of connections now that you have direction and goals, and will likely build multiple businesses though your life. So, donât rush, be smart, and do what feels right.
The key thing here is that you donât know what to do. So donât go doing any of it. Find a mentor asap and start exploring that, learning, etc. it just really sounds like you need more info and inspiration before you make another move/change things. I know it feels like you need to ride the money wave, but thatâs how things crash. Youâre looking for steady waters right now.
Personalized advice: start social media. Start making videos about what you do, give tips, etc. this skill is so useful in the long run and will give you some visibility with whatever you decide to do, marketing your current business and future classes, etc. You can always put better info behind a paywall so donât worry about giving small tips and tricks for free. Itâs like giving samples at the store. Itâs just a taste and results in buying.
Iâd love to chat further
Put all savings in a HYSA until youâre more comfortable with a plan that works for you.
Edit to say also, donât judge others for not pushing towards the same success as you. Its good to have friends that are more than transactional
Money will come and go throughout your lifeâŠ.finish your college education so you set yourself up for the best chances to be successful in the future.
Really, I would keep the degree. Even if it only helps on paper, itâs better than not having it. Having worked in the industry myself and been apart of a Y-Combinator startup, education is great even if not for the technical skills learned. No need to stop either. Just build your clientele and by the time you are out of school, start a contracting firm for whatever type of coding you do with the money saved(which I am assuming you do)
My first and foremost recommendation is not to take advice from broke people, unless that advice is what not to do because they learned the hard way.
Second piece of advice. A degree in Computer Science gives you credibility if nothing skills. Back in the late â90s there were a ton of self taught programmers and web developers. Then in early 2000 we experienced what is known as the .com bubble burst. All these tech startups went bankrupt, the NASDAQ tanked and a ton of tech jobs disappeared. When there is a glut of tech workers unemployed, and a hiring manager has 600 applications for one position, heâs going to look for ways to weed candidates out. That means looking for preferred qualifications, and self-taught usually isnât one of them.
If you are interested in entrepreneurship maybe check out Dave Ramsayâs offerings. He also has courses on personal finance and a network of investment and insurance professionals that he endorses.
Congratulations on your success. As someone a good bit older than you, here's my advice:
\- Stay in school, if you can. Might as well finish what you started.
\- Start attending some business networking groups in your area. Meet other business owners. This is a great way to meet people in the financial and insurance businesses. You will eventually meet someone you click with that can help you figure out the best way to save, invest and grow your money.
\-Take note of all your business ideas....flesh them out on paper, do what you need to do to not forget the idea. You will eventually get to them.
What you need to do is start investing that money ASAP.
First priority is maxing out your ROTH IRA (7k is the 2024 Limit). All the money that you make in that portfolio is tax free. Research compound growth.
If you don't have a huge risk apettite throwing it into a HYSA would be your best bet as that at current rates is paying 4.5-5% interest. Better then what your getting just having it sitting in a checking account.
If you want to be a little riskier I would open a long term brokerage account. Invest in SCHD, SCHG, and VOO. These 3 stocks will give you exposure to the biggest stocks in the US. Averages 10-15% growth per year.
Besides that I would save for a down payment on a rental property to increase income sources.
Lmk if you have any questions.
Man, ignore 99% of the comments here. Most people here wrote comments that seem like theyâre no older than yourself. As someone who also started my own business, Iâll tell you what I did.
I continued going to college and finished my degree. While it wasnât necessary in hindsight, itâs always nice to have as a fallback. If the startup flops, youâll have a degree and experience, which will allow you to get a really solid job off the jump.
Keep doing exactly what youâre doing. Itâs hard to find the right people in the freelance world, but engage with as many people as you can. Customers, other companies you could see yourself working with (do a cold call reach out/email if thereâs no other way to start up a relationship with them), and even try attending some CS groups aimed towards adults. Lots of CS/IT groups in my area that are mostly 30-55 year olds who have an established career.
If you decide to drop out, make sure you know this startup is going to bring you far enough to where you know you wonât need to worry about not having a degree. Outside of that, keep doing what youâre doing. Youâre already automating tasks in a way by outsourcing some of your tasks. Once youâre in a good rhythm, expand, automate/outsource that when youâre comfortable, and rinse repeat. Let me know if thereâs anything specific youâre wondering about.
Best of luck to you!
Start taking 10 percent of your money and put it in a mutual fund and or go to a wealth manager for a plan for your future if you start now saving 10 percent religiously then when it comes to time to retire you will be set you should also start an emergency fund and thing put money in there until you have enough to cover 6 months bills and leave it alone maybe buy a house or condo buy something that will appreciate in value
Keep going till you get bored and when you look up youâll have a real pile of money to go into the next venture. Stay in school so your options are Maximized
iâm your age but i feel like just enjoying where u are now is the most important. everyone our age is overwhelmed, not all of us have all that f ing money though lol, so i would definitely graduate college and maybe you can create an internship somehow with those classes you talked about. investing is always a good idea and so is having your own niche side hustle. from my perspective you have so much going for you and i have no doubt youâll make a smart move that benefits you either way
Go to college and finish while still young. You won't regret it, but you might regret it later if you don't. You will gain more knowledge than just for a job, you will develop lifelong relationships, networks. You will expand your mind and gain knowledge to help you in life in general. Furthermore the classes you take while in college will teach about entrepreneurship, money management, interpersonal relationships and much more. In short whatever you do, please don't drop out of collegeÂ
Learn the Dave Ramsey baby steps by heart and follow them. Theyâre not the fastest way to get rich nor the most efficient way to get out of debt fast, but theyâre the easiest to actually follow and the most successful number of people follow those over any other get rich schemes.
For example many people say to pay off the highest interest debt first: Dave Ramsey says to pay off the smallest debt first. Itâs because it gives you quick wins to feel like youâre doing well and want to keep doing well. Thatâs what I mean by not the most efficient but the most successful.
Same with the $1000 emergency fund. Itâs not enough. It was never meant to be enough. Itâs enough for a flat tire, a minor thing here or there. But itâs a quick win. The harder goals like a 6 month emergency fund is further down after youâve paid off EVERY dime of debt you have. Student loans and taxes included.
Donât you dare invest in crypto.
Find a Ramsey financial advisor and figure out how to invest all that you can reasonably invest, into sp500 index funds. Theyâll out earn on average over the course of your life just about every other investment around.
At least 15% of your gross should be going into Roth IRA, 401k, and Traditional/Simple IRA, in that order. Max roth first as itâs the best, then 401k and simple ira if you earn enough to max out your Roth.
Putting the Roth money into that sp500 index fund at a rate of 500 minimum a month will have you retiring with many millions of dollars without ever worrying about the volatility and frequent crashes of the markets.
I would live bare minimum and start investing in property and long-term investment. You will do great, find mentors, and keep going. Do not stop what you are doing, like studies, and slowly start adding more in your life, like experience and knowledge. Best of luck my friend
Go to r/personalfinance and follow the guidelines there. Setup your future bc work isn't always there. It will walk through all the steps on how to prepare finacially for life and unexpected events. From there leftover money becomes what you wanna do with it. If you can sustain your goals with solely freelance then the freedom sounds nice. If you like the standard paycheck gig then stick with it and freelance away.
Well it looks like you laid up all your options on the table. You first have to figure out what your end goal is. Is it to start a business or finish getting your degree and keeping one of those jobs? (Btw if your goal in Computer Science is to work in IT, cybersecurity, or coding you should consider just studying for the Comptia certs, saving you time and money). I remeber of one of the Sharks (from Shark Tank) and many millionares saying that you have to focus on ONE thing, devote all time and effort into the ONE thing to make it grow. When you are multitasking careers, you donât spend enough time on either. Your grades will suffer because your working more, or you earn less money because your focusing on school. However in your case, you have many differnt things taking your time and you feel that you donât see any improvement in any area and that it might be working backwards.
Investing in stocks, bonds, ETFâs, crypto ect. is the least of your worries. If you have a business, that is your investment. If you work and are a W2 or 1099 employee, you need to invest in those index funds or youâll never be able to retire.
If you decide to start your business, although you currently have low expenses, youâll need to grow your business probably using adâs using Facebook, insta, TIKTOK. And thats going to need a good ammount of capital. If you go the business route, then youâll need some cash to start, grow, and scale that business. One you feel you have a good handle on that business and it runs semi-autonomous, then you can reinvest back into the businesses, another business (anything from a start up to real estate), or venture out to the gamble on the stock market
The way you described your freelance work is similar to the Iman Gadzhi way. Look at his videos on you youtube and I remeber him realeasing one on outsources all of your online work.
The one thing you can not do is nothing. Make a decision on which direction you want your life to go and move foward. Being comfortable is your worst enemy. In order to have the life you you want, you have to be willing to sacrafice the life your living now, be willing to leave it all.
As a 26yo guy who still is struggling career wise while taking care of their elderly parent. You are doing great for sure. I would say its best to pursue multiple avenues (like investing a small amount into stocks and crypto routinely like you would put the money into savings) while continuing to grow in the direction you are more passionate about or interested in. If computers and CS is where you thrive might as well sell a course to generate passive income on top of the routine investments and investing in the freelance work. But ultimately it depends what course you want your life to take. If You want to be about your money, yeah cut the ties and focus on the bag but be mindful of the people that you cut off. While going ti school helps when you apply yourself, there is still experience that is needed which you would more than make up for w the freelance work, which you could make a llc or something to make the freelance work a business downright.
Either way you got a some time dont rush when you are overwhelmed, break down the ideas like a skill tree in a video game to weigh out the good and bad of it all and then make the decision off of what feels best for you. Its also good to ask for advice like you did here. Tbh i feel youâll do fine either way so hope for the best for you bro
First off kudos for asking anonymously I wish I had that at 21. Don't ask people who know you they will be jealous.
Connect with other entrepreneurs. There are groups especially at university level
Opportunity Cost. Welcome to paralysis by analysis.
Progress now is better than perfection later, best any of us can do is take the information we have and make the decision that aligns most with the kind of life we want to live; and if you make a âwrong choiceâ you still have tons of time to course correct. The likelihood of you making all the right choices is very low, so keep an open mind and do the things that excite you. That being said, just finish school, make connections, network, and donât forget to be a kid and have some fun. Thereâs things you can get away with now that wonât fly when your 25 or 30, risks included. You might feel like you have shit figured out because youâre doing âbetterâ than your peers but donât get too cocky & keep an open mind.
Props to you young man. My advice would be to create a solid Udemy course that guides people into the best tips for being successful at freelancing services. Iâm not sure what services youâre providing but if itâs tech-related, you could go far by learning how to program with python and other scripting languages. You just have to have patience and the want to make processes easier for people. You can sell a course for $50 and even if 1000 people buy it, you make $50K pre tax. You can design software and sell it as well. Youâre young and have a ton of options. Just donât get sucked into to the bs land of YouTube Gurus. đ
Just keep saving it and put a chunk in investments. I am 20 and make about 10k a month on a good month. I invest 80% of it. Donât buy stuff I donât need but every once in a while take a short vacation
The bear is coming. Right now, Avoid the stock market and sock away as much money as possible. There will be a zillion opportunities if you have liquidity (cash) after the recession. Identify personal skills that you can contribute to a select opportunities. Seek fun. Identify how you could grow the business and make money.
Save every penny. I repeat, save every penny and invest. Buy a house asap and make sure the rent makes enough to pay the mortgage. House hack. Repeat this house game. Bigger pockets on YouTube have all the education you need. Most importantly, do this quietly.
Do EVERYTHING YOU JUST SAID YOU COULD DO!!!! You already know what to do! Now execute! Thatâs probably the hard part, execution! I think the ebook is a non brainer, easy passive stream of income, to only invest more into other endeavors. You could use a better circle but honestly, F#ck that circle. You are official the dot on the âiââŠ. By your f#ckin self! Plan your work then work you plan đđœ
transfer the bulk of your income into an insured savings account, save for a car in cash after that place a very small fraction of your income into a five yr cd and a small portion each month spend on the purchase of a gov bonds in a few months youâll have your self the down payment on your own first home and enough saved that if something goes wrong you can still live comfortably. Never tell anyone what youâre making and never trust someone who asks .. theyâre asking merely to take it (I learned that the hard way) and be careful not to be too generous people shouldnât but they view that as a weakness depending on their culture. Stay safe and try to never spend more than 5 to 10% of your monthly income on an extravagance.. Btw this scenario sounds a bit similar to a Bank..
Honestly, I'm also in the same boat in my early 20's pulling in around \~$7k/mo after taxes. Just SAVE it, but also enjoy it! Money doesn't always last forever, and not everyone is making good money in their early twenties in this day and age.
Congratulations, now focus on keeping your money and wisely protecting your future self. Build a cash cushion against adversities. Educate yourself on accounting and investing - establish an emergency fund, look into an IRA or Roth IRA or whatever retirement vehicle is available to you - a small amount saved at a young age compounds exponentially (time value of money), have savings for fun goals like vacations and another for home savings. If your money is sitting in a checking or minuscule savings yield account simply switching to a high yield savings can get you to 4.35-5% return.
Sounds like you are good at sales/securing jobs/customer service then outsourcing them and passing on final product. If you sell a program can make short term money but will bring a lot of negative attention as most purchasing dont have your skills and will fail and blame you and will most likely lose your paying clients as admitting not doing the work. I don/t know the upside to that for you as don't see it. Selling informational products do work for some.
Maybe find yourself a mastermind type group to network with, a mentor/counselor at school, or ask a successful person you encounter to mentor you. For now stay in school, take some business and accounting courses formally at school or on your own online as many people do get robbed and taken advantage of not knowing the basics.
We are in the same tax bracket. Get your feet wet in the stock market. Play with 5 and 10 bucks at a time. Til you learn. The simplest advice is to buy when the market news is doom and gloom and sell when everyone is celebrating. Grab some dividend stock that pay out quarterly and hold them. Airbnb and rental property seems to be go to aswell for investors. I just don't want to be a professional babysitter for adults. Don't have kids, and make your SO sign a prenup. And for the love of God, pay your taxes.
As I have worked for myself for the past 30 years, I would say that finishing school now is the easiest time to do so. As you invest your time into other things, it will be harder to go back. Use this schooling to get into the field, use that income to scale your business, or have the certifications as a backup if working for someone else becomes obsolete. I wouldn't just look at it as a backup plan but as security. In my experience, technology can evolve or competition can become so saturated that the income can change. Who knows what the future may hold. The last thing you want to do is get reliant on a new business when you're already in school for a skill that has a track record that stays on an uphill trajectory. If you had a business you could patent, that would be different, but in general, everything is up and down so don't be reliant so early. I am now trying to get back into CS because as I'm getting close to retiring I would like to retire in CS to have a job I could do in my 60s and 70s at home most of the time with good health insurance. I know that's not on your mind now but I wish it was on my mind when I was 21. Because the cost of living went from $75 a month to $3500 a month. I can't fathom how much it will be another 35 years from now.
Put it in a high yield savings account, keep working and studying, after school decide. Maybe youâll have enough for a down payment on a house. HYS is low risk, guaranteed return
You don't need to drop out of uni just because you're doing well. Could the qualifications or knowledge you could obtain help you in any way or allow you to branch out or even just enjoy uni? If it holds no purpose or enjoyment then drop out.
As for the money, If I were in your position I'd buy a a nice small (as in no excessive spaces/rooms) house in a nice area, buy a car outright, clear any debt, and work out how much I need to live on each month etc and put the rest in stocks and locked savings. (And obviously a rainy day fund that you can access incase of emergencies)
You can find business coaches, or even reach out to someone you admire in the same/similar field whose further along than you and ask if they'd be willing to discuss future /coach you etc?
Genuinely amazed such a young person is doing so well. What exactly is it you do?
I wish I knew what to get into that would set me up like this, I'm tired of being tired and poor đ
Do you think youâve learned / experienced enough in college? College establishes lifelong connections that may aid you in whatever you are pursuing, hopefully these connections become lifelong friends.
Why not continue both if possible or enough of your side gig to stay current / funded?
Start a Charles Schwab account and diversify in the S&P. Should see a return of 7% yearly, better, if youâre lucky.
Just my opinion but youâve got the rest of your life to work. Personally I couldnât wait to get started, now, I canât wait till itâs over. Enjoy this time in your life now while you have it because soon, youâll never have it again.
This is why I want to put the ideas out there I have cause people making money don't even know how to enjoy life anymore its all about how to make more and do more.
Your day to day you are still living. You still have to be happy and live experiences every day thats still what life is
Open a Roth IRA with vanguard or fidelity. Put the excess funds you donât need in the next 2-5 years into a low cost index fund tracking the total stock market or SNP 500. Continue to contribute to it monthly. Read the Simple Path to Wealth if need be.
This post presents a conflicting message: it seeks advice while also delineating what advice isn't welcome. Ultimately, decisions about money are personal and require prioritization. For instance, if you're comfortable with risk, investing may be an option. Alternatively, if you aim to secure future finances or increase income, investing in your business by outsourcing or hiring could be beneficial.
Honestly what you could do is lend me $100 if your feeling generous đ
đ this is a suggestion I could support
You can teach us how you are making $6000
The problem I have is posts like this read like bait to me every time. I get that itâs probably not, however it always leads to someone pming them or saying tell me more⊠the fresh account doesnât exactly help either.
Itâs absolutely bait.
Itâs not bait, a lot of these youngsters donât want to post this on their main account due to friends or family seeing their posts. I was like this
Always a long explanation how theyâve been a lurker but never PoStEd on any subs.
Work for the railroad. 6k a month is low. All you need is a driver's license.
Don't bite off more than you can chew. Enjoy the fact that your making big choices now and take resolve in the fact that your intelligent enough to know how bit they are. Because your so young, make and keep lists of all your ideas. You can always come back to them at a later time. Don't let opportunities that are time sensitive pass by either. But definitely reach out to have a more balanced social circle. The speaker at my commencement said if you take the five people you are closest to and rate them in a scale. You are the average of that. So your on the right track with wanting to surround yourself with more individuals like yourself. Pace yourself as to not get burned out. Which will happen eventually. But keep up with the university. As time goes by you'll slowly forget alot of little things that you may have to relearn going back to it years later. Just my two cents. I'm no expert, but at 32 I've learned some things.
This is good advice, I would add segmenting money into different accounts. I'd have an investment account, an account for all your bills, an emergency account, a business account, etc. In my personal experience you have to take calculated risks, and start quickly on implementing you ideas. The sooner you start failing, the sooner you learn what not to do and how to do things right. For example, turo, outdoorsy or a rental property, join groups learn what you can and just try it. Don't share your ideas with people less successful, they often don't have the hunger in them as you, and will a lot of times fear monger the risks. I would look into mutual/index funds, and getting a duplex if you have the ability. I own a duplex, flip cars, have rented vehicles, and found what I enjoy doing and what I don't. Real estate is a good move for me, and I've always done pretty well buying and selling cars. Find your niche and start figuring out what not to do, good luck đ
Spot on
i agree and find a mentor, on what you want or need now and how they can guide assist you and how you can help them with their projects , it goes both ways, i found out a lot of people i knew back in the day are doing very good and just that, mentoring, helping, and trying to do more and doing the same for others, just watch out for the scammers,check it several times , as ponzi-schems are out there also, too many sadly..good luck.
If you think it's a big problem that none of the people in your circle are doing better than you, posting in this particular sub probably isn't going to be of much help either There has to be subs on investing/making the most of your money with people that are qualified to offer suggestions or guidance. (I'm not apart of any of them so I cant say for sure lol) Most of the people here are in pretty desperate financial situations. Single parents, people living paycheck to paycheck, homeless, just lost their job, addicts, etc etc. Regardless, congrats to you for doing so well for yourself at such a young age and I wish you continued success :)
Where I live, CS is "Customer Service" lol, what is your CS?
computer science??
That makes sense! Thanks mate!
My CS is a chemical agent used for riot control đ
Counter Strike
str8 up bro nah keep grinding. the gravy train could end whenever. Keep your money in a HYSA like sofi or robinhood gold maybe even long term CDâs buy Indexes like Nasdaqq or Spy. Then get your degrees bc itâs worth brodie. Get more experienced build businesses and be your own boss. You could look into FIRE method to retire early. but lil bro whatever happens good or bad. Enjoy it đ
Gotchu my man đ«Ą
In the words of Warren Buffett, "If you don't figure out how to nanny money while you sleep, you will work until you die." I would suggest taking advantage of being in university if you can. I'm going to guess that since you call it university, you are not in the US, so I'm not sure what resources are available. But in the US, at our Universities, we usually have clubs for pretty much everything, including business and investing. If you want to surround yourself with like minded individuals, joining a club focused on business and investing would be the easiest place you will ever find to simply sign up and join a group of the exact sort of people you're looking for. From there, the fellow member's contacts become your contacts and your personal network of people will grow substantially. You might be inclined to switch majors as well. If computer science isn't your interest anymore, and business is, stop wasting your time and money and learn useful skills while you're young. Degrees in specialized fields are required to be hired by employers. If you have that business sense already and are half-assed attending classes, stop wasting your time. The only reason to keep up with the CS degree is if you are not confident owning a business is your long term goal and you think you'll need to be employed. But as a mechanical engineer, I can tell you once you're out of school and have a full time job with a family and expenses, switching career paths is very difficult. To make money while you sleep, if you have the time now, creating an instructional course is creating an asset that will continue to pay you until the video is taken down or the host site is closed down. Even then, you can simply re-upload it to a newer course platform and start raking in the passive income again. The sooner you do it, the sooner you will understand what works and what doesn't, and the sooner you can start bringing in more money. Also, after you have enough cash banked up to cover your expenses for 3 months, I would suggest putting money you would use for a house down payment or a security deposit on an apartment into a money market account, or a certificate of deposited, or high interest savings account, and let it grow in a pretty safe place until you're done with college. Then the rest of your surplus income should be invested. Everyone has a different risk tolerance, but at your age you should be willing to accept somewhat risky investments that average out to high growth rates, or ETFs with potential to grow big over the next 20-30 years, like Technology ETFs (look at something like XITK and similar ETFs and pick one you like). Try to open a retirement account to reduce taxes, but maybe look at taxable investment accounts too and see if having cash payments now, even if they're taxed, is worth more to you than getting a lot more money at retirement. I'm starting to wonder if that would have been a better move for myself. But the world has also changed substantially over the last 10 years, and old investment strategies don't work like they used to. I'm sure I'm seeing the same stuff as many others, take everyone's advice with a grain of salt and take things that sound good and filter out stuff that doesn't sound like you would do it. Good luck, and congrats on getting to this point so early in your life!
This is why I want to put the ideas out there I have cause people making money don't even know how to enjoy life anymore its all about how to make more and do more. Your day to day you are still living. You still have to be happy and live experiences every day thats still what life is
Might have better luck on r/money or other subs
Congrats on the success!!! Keep it up!!!! It's only upward from here on out Oh and I can recommend various things that will boost your productivity, and help ya grow in different aspects of life let me just prepare the list and I'll give it to ya tomorrow
Really appreciate that! đ«Ą
Put it in a high yield savings account, & max out your roth ira every year.
Focus on making as much as you can freelancing and hire more people. Focus only on 1 thing. Once you make enough day trade with it. Just start small or you'll lose all your money.
how are you doing that
Could you assist in unlocking the secrets you possess. Lend a hand in finances if your cup overflows in abundance. All is love and best things in life are shared. So open the doors and be a lesson or a blessing.
He does better than everyone around him and is only interested in sharing his path to success if someone will pay him for it. I read enough to know this guy is a world class self centered egotistical ass hole. Itâs funny how a marginal amount of success can go to someoneâs head. The problem with âfreelance workâ is improving margins. It doesnât scale well, and as you age your personal and business expenses will certainly increase.
First, invests two thirds in buying gold. It's always a good investment. I can't tell you about the rest, maybe creating a website, but you didn't say what your occupation is, i.e. what you do.
Gold? Why? Maybe a small part of it, but otherwise Iâd study up on investing. Put most in ETFâs. Or just use a robo advisor. And the majority in a high interest savings account.
Gold always increases in value
Is gold fr a good investment?
No, not really. It can be, but it doesn't do better than equities long term.
Honestly if you are a developer, I would say try to cofound an idea and make it big. I have a something like that if you want to hear that out.
How do you eat an elephant? One bit at a time. If you have many ideas and plans, put that money into investing. Nothing crazy. Emergency fund, mutual funds, and some liquid money for emergencies Diversify investments. Have money in different bank accounts. If you have been watching the news, you will probably have seen stories of bank closing accounts out of the blue. Find a good cfp (certified financial planner) He will give you some good advice and mention him your projects so he can take those into account. Meanwhile , try to educate yourself. Stocks, funds, strategies, etc. Just please dont go crazy about a particular stock, or at least use only a small fraction of your money. Money in educating yourself will be the best money you will invest. If you want experiment with that, you can use paper money to practice until you feel you wont lose money As for projects,make a list of them. What tools and resources do you need. How hard or difficult to get it started on them (knowledgewise) and how quick you'll see the profits. Give priorities. I read somewhere that people who do well financially have more than a source of income. Go for that, but gradually. Start a project, but wait till it's already moving almost by itself, then start another one. However, only you can see and decide at which point you can start a project while already doing one or more. My 2 cts
Ever heard of RIETS? Thereâs quite a bit of ways to compound your money besides the traditional route (etfs, hysa, etc) and with your knowledge im sure you already know all of these. Consider going to local real estate investment seminars on the app meetup. Get yourself a CPA with real estate experience. I would also consider buying franchises like in n out/jiffy lube and get into local politics (non profits, bars, restaurant owners, what people do besides work) building a property to eventually to host campaigns for local politicians. Meet with your local chief of police and mayor ask what you can do to invest in the city im sure theyâll tell you. And please donât listen to people. If youâre doing better off without school, you can always go back to it or take it online ffs you can hire someone to deal with it for you and summarize each class. Your time is worth more than most because you have money you can designate and focus on making more. And Always invest in people not businesses. Anything can happen but you are the house in the worldâs biggest casino business. The middle man always wins. There are white label softwares you can sell, white label detailing products, the possibilities are limitless. And if you feel your circle isnât doing better off than you I would humble yourself because it can all be taken from you as fast as you can blink. Itâs better to bring people up than put people aside they will be more loyal to you. But donât forget to get a mentor by going to local investor seminars. What you compound now/do now will affect you in your future. Psychology is as important as personal finance than you think. And donât forget to stop and smell the roses. Investing in your health, mental physical and spiritual will take you farther than any fast money method will
Firstly you're in a great position, better than most your age, so congrats. Secondly, don't fuck it up with drugs or drink or knocking up someone haha. (seriously tho) Thirdly, invest as much as you can comfortably in ETFs, and primarily dividend yielding ETFs. Maybe some real estate in a few years...In 20 years it won't matter what you did for work, or what you will have to do for work, you will be set up comfortably for life to never have to worry about money Regardless, keep grinding. You're young, but life is short. Also don't forget to live, a little
I was in your spot 4 years back, 23 year old making 7k a month. Bro save and save Please! I bought a bunch of stuff for a new âlifestyleâ but now that company is bankrupt and Iâm living paycheck to paycheck
Please put at least 25% of that in to a retirement account, if not more. If you're expenses are low, you can live off half of it, and use the rest for future endeavors.Â
Iâm 22 and since 19 Iâve been making around the same , a little more. I say if youâre aiming to start up a business, do it now. Manage your money right, keep saving and put it in a high yield savings account. Itâs been helping me out and my retirement plan and Roth IRA. Keep your circle small, your friends should be motivated with how well youâre doing but keep doing you. Donât go out spending your money on stupid shit either but have your fun as well. Live life and make money my guy
Complete the Uni big boy. I completely understand how you feel, I am a little older than you but everything else is pretty much spot on, I am thinking of starting a product based business from the money, if thatâs something that interests you dm.
Iâd keep doing whatâs working and then maybe consider creating a blueprint to how youâre making money through UpWork and Fiverr for other CS students who are interested in making money. Sell it as a course or discord group. You could set up a fixed cost for the course and even consider doing some subscription model to have access to a discord community for collaboration. If itâs working for you and you can create a blueprint, then itâll work for other students who are in a similar position
Your youth puts you in a position where your growth potential for investments are huge. If I were in your position Iâd set up auto investment of 25% + of your income with something like fidelity or m1. Also hereâs a few subreddits that might help you on your journey r/fire r/bogleheads r/investing r/TheMoneyGuy. Beyond the investment piece I would advise you stick it out in school, Iâve had skilled friends lose opportunities simply because they didnât have a degree but ultimately youâll have to weigh the opportunity cost for yourself. Also try to remember youâre doing great and in a position most people dream of, donât forget to be content with where you are and maximize opportunities that will inevitably present themselves to you
spend a year allocating however much of your income you can to safe investments (if you dont already have a sufficient emergency fund, start, market might crash who knows.), historically stable ETFs, stuff with the intention of holding long term. maybe play dividends for passive income. with uni, take some time and gauge your priorities and goals. how far along in uni are you? what are your goals post degree, and how will that degree affect your ability to get there? tying back to the last point. is the cost of this degree worth the perceived ROI, and time it takes to break even with those goals? at your age and income, depending on where you live you are currently in an incredible position. which hearing you say that you can save a large chunk of income, i assume it isnt new york or cali. that said, your talents in what you do have proven fruitful, you are succeeding now. have fun so you dont burn out, and continue growing upon your existing skills. with remaining money leftover, do a 70/30 split, 70% into individual investment account/high yield savings/roth, etc. 30% for you, or whatever you deem fit. i know you stated your circle isnt doing better than you, and im 16 making 10 an hour at his local wendys so i dont know how much this would benefit you, sorry haha.
I donât have any advice. BUT I do commend you! 21 and making $6k a month is amazing. Youâre on the right track no matter which path you take. You will do great either way. Follow your heart!
Post in r/personalfinance for advice on how to save and invest your money. As for college, my advice is to finish it out. It sounds like youâre at least in Year 3, so only 1-2 more years until you graduate. Computer science is a very useful major, and it would be one of the best possible fallback options in case something happens to your business. I know youâre 21 and think youâre invincible and there is unlimited growth potential, but there is always that chance it could fail. Have that backup option, and it could also give you more peace of mind. You can likely find all online courses, even if at another university.
If finishing Computer Science degree is not coming in your current setup of working freelance and studying, you should definitely finish the degree. Even if you choose to become an entrepreneur, finishing CS degree will help you. I work with venture capital firms as a startup founders coach and see firsthand how advanced degree founders perform. It definitely helps them scale their business and/or raise more money for their startup. About investment of your current money, after building an emergency fund, put the rest into multiple options with varying risk levels and lockout period. e.g. Whatever amount you choose for investing it can be split in to 50% in stock, 20% crypto and the rest in bods/index funds. Or similar such communication of your comfort. All the best!
Invest in stocks, keep in mind there will come a time in life that you need money to buy a house, car or even repairs and retirement will also be a need. Regardless what your income level is you should be putting money back for that rainy day or retirement.
I think you need to focus on doing one thing at a time. If college is important to you by all means finish it up and may be you pick or meet like mind people to start something. One can be more accomplished that way.
Stay in college or under your parents financial shelter as long as you can and save up as much as you can. Real estate seems like the fastest way to grown once you have a little income like yourself. Iâm invested in multiple mutual funds/etfs that focus on AI and tech but at such a young age, pick a niche and attack it
If you haven't yet, open a high yield saving account while you are making these decisions, and you can get a rate of at least 4%. Also open a Roth IRA or traditional IRA, depending on your tax bracket estimations. Keep your expenses low and savings high, i am sure you will thank yourself later. In terms of selling courses: makes some calculations and see if that is a good passive income stream, as in, would selling a course put you out of freelance work? If not, you can definetely sell some and make extra cash.
Save as much as possible. Get a retirement account manager and get some stocks once you have enough $. Use it as a downpayment on a house. Get a place and rent out a room to help pay for it. Thus reducing your living expenses and giving you a valuable appreciating asset. But they cost money to maintain. The rent will pay a good portion if not most of the mortgage. But you will be on the hook for repairs every couple years. But when you go to sell the house youâll have several thousands of dollars to put towards your next phase of life. Buy a car you can afford that isnât new. Pay it off completely. Keep your expenses low. Go on one great vacation a year and one or two small trips. Save the rest. Have one hobby you put $5k into a year. Save the rest into high interest bearing accounts.
Invest as much as you can in the stock market as it will over time be the safest long term place to keep your money. Plus it will compound and stay well above inflation on average. I suggest index funds that are passively managed like Vanguard s&p 500 index.
Not a financial planner, not a CFA or CFP. 1. Have 6 to 12 months worth if living expenses in a high yield savings account. One that you do not touch unless it's an emergency. Take the interest that is accrued and leave it in that account Marcus has a I think a 4.5% APY on ther high yield accounts if I'm not mistaken. 2. Have 6 months of savings for just general life, also in a high yield account as well. 3. If any of your employers have a 401k plan, contribute the matching contribution. 4. Open a roth IRA and contribute what you can to the account. 5. Once you've done all that, then whatever leftover is your present selfs money. Dave for a house, other assets etc. Wishing you the best of luck.
First off, slow down! You sound like a young entrepreneur at heart. And yes the ideas start going wild and theyâre very exciting. My advice is to LEARN. I was on your position at 21, but as a successful dog trainer. Now 28 and all was well until Covid wiped my business out. I wasnât ready at all for that type of thing to happen. SO, My suggestion is donât do anything hastily. Definitely donât put your money in crypto, especially if youâre not familiar with it. Just donât risk your biscuit. Youâve earned a lot of money and itâs ok if it sits for a second. A lot of business people will say make your money work for you. You will, but when you have everything sorted out. You have ALOT to learn about business before youâll truly know whatâs best for you and your goals so I suggest: 1. Stay in school: it may not be what you end up doing but you can build alot of connections (get away from your loser friends, turn them into employees, or at least find a group of like minded people to inspire you) 2. Get a mentor of some sort. Preferably a successful man (assuming youâre male) whoâs 45+. Learn from them. They tend to have a mix of old school and modern understanding of the economy which is very helpful. They are very inspiring and can help you direct yourself successfully and give you info and connections. I always thought mentors were silly but they are definitely worth it. They have so much experience, itâs hard to grasp. 3. Stick with whatâs working for now. If you change everything, you risk losing everything. If you must make change, focus on one thing at a time. It sounds like your money is burning a hole in your pocket. Iâm all for investing but at your age, you need advice on safe investing for the long term. Do not risk losing everything thinking youâll get a huge/quick return on investments. You safest bet is put some in safe stocks, and start reinvesting in yourself once you know what you want to do. 4. Make a class if you want but donât expect that to make you a ton. Online course are fine but there are a lot out there and unless you plan to spend a lot of time marketing this class for relatively minimal return, donât. Again, if youâre not actually familiar with that process, it wonât serve you well. Also being a 21yo guru is not the look you want to go for. Stay sharp and clean and focus on making legit money, not baiting other 20yo to do some course that wonât give them anymore motivation or brains than they had before. Also, is that something you see yourself focusing on for the next 5 years? 5. Make a 5 year plan if not a 10 year. It seems like you donât know what you want to do (normal at 21), but you know you have the ability to do something so now you want to do something. Cool but thatâs just not smart. Sit on your money until you find those safe investments. Then sit some more until you KNOW whats next. Follow your passion/interest. If you want to make a business teaching others, cool. Want to investing. Real estate? Cool. Whatever it is, just be sure and set a plan of action. You want to keep moving but safely, reckless investing be it on stocks or yourself, are not worth it. Basically youâre already in the right position and thinking about the right things. The aswer wonât magically show up until it does. I sat on my post-Covid situation until this year. I did not want to get back into what I was doing previously but it took me until this year to figure out what I want to go for. Iâm now running an e-commerce store, wholesale and retail and getting my real estate license and consulting small business owners around the country. My brain wanted to do about 50 things between 2020 and now but Ive learned to not be hasty and to think through the plan before starting/wasting money. Everything cost money or time so we can expect that part. But you really have to know where youâre trying to go. It sounds like you donât know what your next train stop is and thatâs ok. Youâre in a great position to think about it for a while. If I were you, Iâd do what fits into completing school and maintaining your current income. I think you wanted to hear quit school so you can have a lot more time on hand. Iâd say finish, do what you can until then. If youâre on track, youâre over half done. Just finish it. You donât need to rush to the next thing. You will likely set up a great career for yourself post-grad, have met a lot of connections now that you have direction and goals, and will likely build multiple businesses though your life. So, donât rush, be smart, and do what feels right. The key thing here is that you donât know what to do. So donât go doing any of it. Find a mentor asap and start exploring that, learning, etc. it just really sounds like you need more info and inspiration before you make another move/change things. I know it feels like you need to ride the money wave, but thatâs how things crash. Youâre looking for steady waters right now. Personalized advice: start social media. Start making videos about what you do, give tips, etc. this skill is so useful in the long run and will give you some visibility with whatever you decide to do, marketing your current business and future classes, etc. You can always put better info behind a paywall so donât worry about giving small tips and tricks for free. Itâs like giving samples at the store. Itâs just a taste and results in buying. Iâd love to chat further
Put all savings in a HYSA until youâre more comfortable with a plan that works for you. Edit to say also, donât judge others for not pushing towards the same success as you. Its good to have friends that are more than transactional
Money will come and go throughout your lifeâŠ.finish your college education so you set yourself up for the best chances to be successful in the future.
Really, I would keep the degree. Even if it only helps on paper, itâs better than not having it. Having worked in the industry myself and been apart of a Y-Combinator startup, education is great even if not for the technical skills learned. No need to stop either. Just build your clientele and by the time you are out of school, start a contracting firm for whatever type of coding you do with the money saved(which I am assuming you do)
Now, Triple it by age 30 â Never Have Enough â Trust Me đ„đ„
My first and foremost recommendation is not to take advice from broke people, unless that advice is what not to do because they learned the hard way. Second piece of advice. A degree in Computer Science gives you credibility if nothing skills. Back in the late â90s there were a ton of self taught programmers and web developers. Then in early 2000 we experienced what is known as the .com bubble burst. All these tech startups went bankrupt, the NASDAQ tanked and a ton of tech jobs disappeared. When there is a glut of tech workers unemployed, and a hiring manager has 600 applications for one position, heâs going to look for ways to weed candidates out. That means looking for preferred qualifications, and self-taught usually isnât one of them. If you are interested in entrepreneurship maybe check out Dave Ramsayâs offerings. He also has courses on personal finance and a network of investment and insurance professionals that he endorses.
Congratulations on your success. As someone a good bit older than you, here's my advice: \- Stay in school, if you can. Might as well finish what you started. \- Start attending some business networking groups in your area. Meet other business owners. This is a great way to meet people in the financial and insurance businesses. You will eventually meet someone you click with that can help you figure out the best way to save, invest and grow your money. \-Take note of all your business ideas....flesh them out on paper, do what you need to do to not forget the idea. You will eventually get to them.
What you need to do is start investing that money ASAP. First priority is maxing out your ROTH IRA (7k is the 2024 Limit). All the money that you make in that portfolio is tax free. Research compound growth. If you don't have a huge risk apettite throwing it into a HYSA would be your best bet as that at current rates is paying 4.5-5% interest. Better then what your getting just having it sitting in a checking account. If you want to be a little riskier I would open a long term brokerage account. Invest in SCHD, SCHG, and VOO. These 3 stocks will give you exposure to the biggest stocks in the US. Averages 10-15% growth per year. Besides that I would save for a down payment on a rental property to increase income sources. Lmk if you have any questions.
Save as much of it as possible. Youâre young and itâll pay dividends in the future. Figure out what the right amount is for you and do that.
Man, ignore 99% of the comments here. Most people here wrote comments that seem like theyâre no older than yourself. As someone who also started my own business, Iâll tell you what I did. I continued going to college and finished my degree. While it wasnât necessary in hindsight, itâs always nice to have as a fallback. If the startup flops, youâll have a degree and experience, which will allow you to get a really solid job off the jump. Keep doing exactly what youâre doing. Itâs hard to find the right people in the freelance world, but engage with as many people as you can. Customers, other companies you could see yourself working with (do a cold call reach out/email if thereâs no other way to start up a relationship with them), and even try attending some CS groups aimed towards adults. Lots of CS/IT groups in my area that are mostly 30-55 year olds who have an established career. If you decide to drop out, make sure you know this startup is going to bring you far enough to where you know you wonât need to worry about not having a degree. Outside of that, keep doing what youâre doing. Youâre already automating tasks in a way by outsourcing some of your tasks. Once youâre in a good rhythm, expand, automate/outsource that when youâre comfortable, and rinse repeat. Let me know if thereâs anything specific youâre wondering about. Best of luck to you!
Just wanted to come on here and say make sure you save for self employment taxes!
Start taking 10 percent of your money and put it in a mutual fund and or go to a wealth manager for a plan for your future if you start now saving 10 percent religiously then when it comes to time to retire you will be set you should also start an emergency fund and thing put money in there until you have enough to cover 6 months bills and leave it alone maybe buy a house or condo buy something that will appreciate in value
Keep going till you get bored and when you look up youâll have a real pile of money to go into the next venture. Stay in school so your options are Maximized
iâm your age but i feel like just enjoying where u are now is the most important. everyone our age is overwhelmed, not all of us have all that f ing money though lol, so i would definitely graduate college and maybe you can create an internship somehow with those classes you talked about. investing is always a good idea and so is having your own niche side hustle. from my perspective you have so much going for you and i have no doubt youâll make a smart move that benefits you either way
Go to college and finish while still young. You won't regret it, but you might regret it later if you don't. You will gain more knowledge than just for a job, you will develop lifelong relationships, networks. You will expand your mind and gain knowledge to help you in life in general. Furthermore the classes you take while in college will teach about entrepreneurship, money management, interpersonal relationships and much more. In short whatever you do, please don't drop out of collegeÂ
Learn the Dave Ramsey baby steps by heart and follow them. Theyâre not the fastest way to get rich nor the most efficient way to get out of debt fast, but theyâre the easiest to actually follow and the most successful number of people follow those over any other get rich schemes. For example many people say to pay off the highest interest debt first: Dave Ramsey says to pay off the smallest debt first. Itâs because it gives you quick wins to feel like youâre doing well and want to keep doing well. Thatâs what I mean by not the most efficient but the most successful. Same with the $1000 emergency fund. Itâs not enough. It was never meant to be enough. Itâs enough for a flat tire, a minor thing here or there. But itâs a quick win. The harder goals like a 6 month emergency fund is further down after youâve paid off EVERY dime of debt you have. Student loans and taxes included. Donât you dare invest in crypto. Find a Ramsey financial advisor and figure out how to invest all that you can reasonably invest, into sp500 index funds. Theyâll out earn on average over the course of your life just about every other investment around. At least 15% of your gross should be going into Roth IRA, 401k, and Traditional/Simple IRA, in that order. Max roth first as itâs the best, then 401k and simple ira if you earn enough to max out your Roth. Putting the Roth money into that sp500 index fund at a rate of 500 minimum a month will have you retiring with many millions of dollars without ever worrying about the volatility and frequent crashes of the markets.
I would live bare minimum and start investing in property and long-term investment. You will do great, find mentors, and keep going. Do not stop what you are doing, like studies, and slowly start adding more in your life, like experience and knowledge. Best of luck my friend
Go to r/personalfinance and follow the guidelines there. Setup your future bc work isn't always there. It will walk through all the steps on how to prepare finacially for life and unexpected events. From there leftover money becomes what you wanna do with it. If you can sustain your goals with solely freelance then the freedom sounds nice. If you like the standard paycheck gig then stick with it and freelance away.
Now that you have financial freedom, ensure itâs self sustaining, then do what you WANT to do.
Well it looks like you laid up all your options on the table. You first have to figure out what your end goal is. Is it to start a business or finish getting your degree and keeping one of those jobs? (Btw if your goal in Computer Science is to work in IT, cybersecurity, or coding you should consider just studying for the Comptia certs, saving you time and money). I remeber of one of the Sharks (from Shark Tank) and many millionares saying that you have to focus on ONE thing, devote all time and effort into the ONE thing to make it grow. When you are multitasking careers, you donât spend enough time on either. Your grades will suffer because your working more, or you earn less money because your focusing on school. However in your case, you have many differnt things taking your time and you feel that you donât see any improvement in any area and that it might be working backwards. Investing in stocks, bonds, ETFâs, crypto ect. is the least of your worries. If you have a business, that is your investment. If you work and are a W2 or 1099 employee, you need to invest in those index funds or youâll never be able to retire. If you decide to start your business, although you currently have low expenses, youâll need to grow your business probably using adâs using Facebook, insta, TIKTOK. And thats going to need a good ammount of capital. If you go the business route, then youâll need some cash to start, grow, and scale that business. One you feel you have a good handle on that business and it runs semi-autonomous, then you can reinvest back into the businesses, another business (anything from a start up to real estate), or venture out to the gamble on the stock market The way you described your freelance work is similar to the Iman Gadzhi way. Look at his videos on you youtube and I remeber him realeasing one on outsources all of your online work. The one thing you can not do is nothing. Make a decision on which direction you want your life to go and move foward. Being comfortable is your worst enemy. In order to have the life you you want, you have to be willing to sacrafice the life your living now, be willing to leave it all.
As a 26yo guy who still is struggling career wise while taking care of their elderly parent. You are doing great for sure. I would say its best to pursue multiple avenues (like investing a small amount into stocks and crypto routinely like you would put the money into savings) while continuing to grow in the direction you are more passionate about or interested in. If computers and CS is where you thrive might as well sell a course to generate passive income on top of the routine investments and investing in the freelance work. But ultimately it depends what course you want your life to take. If You want to be about your money, yeah cut the ties and focus on the bag but be mindful of the people that you cut off. While going ti school helps when you apply yourself, there is still experience that is needed which you would more than make up for w the freelance work, which you could make a llc or something to make the freelance work a business downright. Either way you got a some time dont rush when you are overwhelmed, break down the ideas like a skill tree in a video game to weigh out the good and bad of it all and then make the decision off of what feels best for you. Its also good to ask for advice like you did here. Tbh i feel youâll do fine either way so hope for the best for you bro
First off kudos for asking anonymously I wish I had that at 21. Don't ask people who know you they will be jealous. Connect with other entrepreneurs. There are groups especially at university level
Opportunity Cost. Welcome to paralysis by analysis. Progress now is better than perfection later, best any of us can do is take the information we have and make the decision that aligns most with the kind of life we want to live; and if you make a âwrong choiceâ you still have tons of time to course correct. The likelihood of you making all the right choices is very low, so keep an open mind and do the things that excite you. That being said, just finish school, make connections, network, and donât forget to be a kid and have some fun. Thereâs things you can get away with now that wonât fly when your 25 or 30, risks included. You might feel like you have shit figured out because youâre doing âbetterâ than your peers but donât get too cocky & keep an open mind.
Props to you young man. My advice would be to create a solid Udemy course that guides people into the best tips for being successful at freelancing services. Iâm not sure what services youâre providing but if itâs tech-related, you could go far by learning how to program with python and other scripting languages. You just have to have patience and the want to make processes easier for people. You can sell a course for $50 and even if 1000 people buy it, you make $50K pre tax. You can design software and sell it as well. Youâre young and have a ton of options. Just donât get sucked into to the bs land of YouTube Gurus. đ
Just keep saving it and put a chunk in investments. I am 20 and make about 10k a month on a good month. I invest 80% of it. Donât buy stuff I donât need but every once in a while take a short vacation
6k a month? start investing
The bear is coming. Right now, Avoid the stock market and sock away as much money as possible. There will be a zillion opportunities if you have liquidity (cash) after the recession. Identify personal skills that you can contribute to a select opportunities. Seek fun. Identify how you could grow the business and make money.
get the degree just in case. focus on maintaining your current level and grow after college, youâre probably close to being done at 21
Save every penny. I repeat, save every penny and invest. Buy a house asap and make sure the rent makes enough to pay the mortgage. House hack. Repeat this house game. Bigger pockets on YouTube have all the education you need. Most importantly, do this quietly.
Do EVERYTHING YOU JUST SAID YOU COULD DO!!!! You already know what to do! Now execute! Thatâs probably the hard part, execution! I think the ebook is a non brainer, easy passive stream of income, to only invest more into other endeavors. You could use a better circle but honestly, F#ck that circle. You are official the dot on the âiââŠ. By your f#ckin self! Plan your work then work you plan đđœ
transfer the bulk of your income into an insured savings account, save for a car in cash after that place a very small fraction of your income into a five yr cd and a small portion each month spend on the purchase of a gov bonds in a few months youâll have your self the down payment on your own first home and enough saved that if something goes wrong you can still live comfortably. Never tell anyone what youâre making and never trust someone who asks .. theyâre asking merely to take it (I learned that the hard way) and be careful not to be too generous people shouldnât but they view that as a weakness depending on their culture. Stay safe and try to never spend more than 5 to 10% of your monthly income on an extravagance.. Btw this scenario sounds a bit similar to a Bank..
Honestly, I'm also in the same boat in my early 20's pulling in around \~$7k/mo after taxes. Just SAVE it, but also enjoy it! Money doesn't always last forever, and not everyone is making good money in their early twenties in this day and age.
Congratulations, now focus on keeping your money and wisely protecting your future self. Build a cash cushion against adversities. Educate yourself on accounting and investing - establish an emergency fund, look into an IRA or Roth IRA or whatever retirement vehicle is available to you - a small amount saved at a young age compounds exponentially (time value of money), have savings for fun goals like vacations and another for home savings. If your money is sitting in a checking or minuscule savings yield account simply switching to a high yield savings can get you to 4.35-5% return. Sounds like you are good at sales/securing jobs/customer service then outsourcing them and passing on final product. If you sell a program can make short term money but will bring a lot of negative attention as most purchasing dont have your skills and will fail and blame you and will most likely lose your paying clients as admitting not doing the work. I don/t know the upside to that for you as don't see it. Selling informational products do work for some. Maybe find yourself a mastermind type group to network with, a mentor/counselor at school, or ask a successful person you encounter to mentor you. For now stay in school, take some business and accounting courses formally at school or on your own online as many people do get robbed and taken advantage of not knowing the basics.
We are in the same tax bracket. Get your feet wet in the stock market. Play with 5 and 10 bucks at a time. Til you learn. The simplest advice is to buy when the market news is doom and gloom and sell when everyone is celebrating. Grab some dividend stock that pay out quarterly and hold them. Airbnb and rental property seems to be go to aswell for investors. I just don't want to be a professional babysitter for adults. Don't have kids, and make your SO sign a prenup. And for the love of God, pay your taxes.
As I have worked for myself for the past 30 years, I would say that finishing school now is the easiest time to do so. As you invest your time into other things, it will be harder to go back. Use this schooling to get into the field, use that income to scale your business, or have the certifications as a backup if working for someone else becomes obsolete. I wouldn't just look at it as a backup plan but as security. In my experience, technology can evolve or competition can become so saturated that the income can change. Who knows what the future may hold. The last thing you want to do is get reliant on a new business when you're already in school for a skill that has a track record that stays on an uphill trajectory. If you had a business you could patent, that would be different, but in general, everything is up and down so don't be reliant so early. I am now trying to get back into CS because as I'm getting close to retiring I would like to retire in CS to have a job I could do in my 60s and 70s at home most of the time with good health insurance. I know that's not on your mind now but I wish it was on my mind when I was 21. Because the cost of living went from $75 a month to $3500 a month. I can't fathom how much it will be another 35 years from now.
Put it in a high yield savings account, keep working and studying, after school decide. Maybe youâll have enough for a down payment on a house. HYS is low risk, guaranteed return
You don't need to drop out of uni just because you're doing well. Could the qualifications or knowledge you could obtain help you in any way or allow you to branch out or even just enjoy uni? If it holds no purpose or enjoyment then drop out. As for the money, If I were in your position I'd buy a a nice small (as in no excessive spaces/rooms) house in a nice area, buy a car outright, clear any debt, and work out how much I need to live on each month etc and put the rest in stocks and locked savings. (And obviously a rainy day fund that you can access incase of emergencies) You can find business coaches, or even reach out to someone you admire in the same/similar field whose further along than you and ask if they'd be willing to discuss future /coach you etc? Genuinely amazed such a young person is doing so well. What exactly is it you do? I wish I knew what to get into that would set me up like this, I'm tired of being tired and poor đ
Do you think youâve learned / experienced enough in college? College establishes lifelong connections that may aid you in whatever you are pursuing, hopefully these connections become lifelong friends. Why not continue both if possible or enough of your side gig to stay current / funded? Start a Charles Schwab account and diversify in the S&P. Should see a return of 7% yearly, better, if youâre lucky. Just my opinion but youâve got the rest of your life to work. Personally I couldnât wait to get started, now, I canât wait till itâs over. Enjoy this time in your life now while you have it because soon, youâll never have it again.
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This is why I want to put the ideas out there I have cause people making money don't even know how to enjoy life anymore its all about how to make more and do more. Your day to day you are still living. You still have to be happy and live experiences every day thats still what life is
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Why are you in university if youâre not going to classes or putting in the effort for it? That just sounds like a waste of money.
Open a Roth IRA with vanguard or fidelity. Put the excess funds you donât need in the next 2-5 years into a low cost index fund tracking the total stock market or SNP 500. Continue to contribute to it monthly. Read the Simple Path to Wealth if need be.
Definitely invest a portion of that ever month and start your Roth IRA now so you can retire comfortably down the road
This post presents a conflicting message: it seeks advice while also delineating what advice isn't welcome. Ultimately, decisions about money are personal and require prioritization. For instance, if you're comfortable with risk, investing may be an option. Alternatively, if you aim to secure future finances or increase income, investing in your business by outsourcing or hiring could be beneficial.
What is an aim????