I am not ignorant of the risks, I am willing to accept some of them.
I am not frustrated with the advice, it seems to be given with the best intentions in mind. I am frustrated with the redundancy of reading the same thing over and over again just to find a single sentence or two that actually contains new information.
And as previously stated, property investment is a no-go, I don't understand why this point comes back constantly.
Investing in home improvements such as new windows for reduced energy useage is a possibillity, and very likely to be lucrative given the energy costs these days.
Some funds are a good option, and I will put some money there, but it does not seem to me like the best investment. I'd rather buy various historically stable stocks with dividend than most managed funds.
I don't watch TV and I do not use Facebook or other social media, I block most ads and cookies, I do not see any such news anywhere and it's not at all part of my equation.
Yes.
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Thank you @rayma I'll get that book.
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Fair enough. Buy a low cost dividend stock fund, then. Vanguard has several with management fees well below 1%, for example, even for an actively managed fund.
Tom
As George suggested, you can make improvements on your current home or make additional principal payments. Or you could invest in REITs. I'm not suggesting you do any of those. Just that they're possibilities.
And, frankly... If you have credit card debt using the $833/month to pay that down would be the real winner!
Tom
We often hire new college graduates at work, and I am amazed on how many don't set up and contribute to their 401k, I tell them they are leaving an important part of their compensation on the table...and their idea of investing for the future is buying crypto (sigh)...
With inflation where it is, they really need to "do something" with their money.
With inflation where it is, they really need to "do something" with their money.
Yup. I admit... I spent too much time partying and chasing skirt after graduation before I really started thinking about my 401k...
Usually it is "too late" to buy in when these articles are published, unless you trade them during the day or coming days. Others may be a good holding stock - you will have to decide for yourself. Try to identify sectors with bullish outlook(from news and media) and invest in peers/laggers within that sector. Look at company history and assess risk.
Always have a plan with defined sell/buy points/times and stick to the plan.
Once again, I recommend that you stick to Norwegian stocks. Less cost of trading("kurtasje"/commission fee), no currency to screw you over.
As for reading analysis, buying recommendations and such;
- finansavisen (norwegian)
- forum @ finansavisen
- dagens næringsliv (norwegian)
- e24.no (norwegian)
- podcasts
- twitter (find the skilled people or identify trends)
- your bank will probably have some good quality analysis available for free through the stock/investing platform.
There is a trivial solution to all this:
1) forget playing the stock market which is either gambling (you BET some stock will rise) or a Ponzi scheme: newcomers pay you more that what you paid yesterday, because they expect it to rise tomorrow so they sell it at profit.
Why a Ponzi scheme? ... because there is NO real wealth creation by all its juggling, yet newcomers help pay early investors with their fresh money ... the classic definition.
2) instead, make interest rates work FOR you.
How?
YOU get the loan at 1.7% and YOU lend it to others at 8-15% , as much as borrowers accept.
You pocket the difference, which is much higher than ANY Stock investment can offer.
But ... but .... why would anybody borrow from you, instead of an established Bank or Financial institution?
Think again: they demand lots of things, stable income, fixed home address, reasonably good salaries, clean credit history, prefer to deal deal in certain amounts only, have preferred loan repayment times, which may or may not suit borrowers, the works, while you can be way more flexible ... and relatively safe too IF you stick to people you know.
My personal observation and guess others noticed same or similar is that MOST people take any loan/credit offered, even if they don´t really need it.
With due respect, even you are doing that now.
But ... but ... why would anybody pay 8-15% when cheaper (Bank) loans are available?
a) reread what I wrote above about asking for a loan annoyances and red tape.
b) does people pay 20% or higher for loans?
They do it all the time, without even flinching ... they DO use credit cards, don´t they?
Serious, I guess this is the best money-multiplying advice you got so far.
I am not joking.
1) forget playing the stock market which is either gambling (you BET some stock will rise) or a Ponzi scheme: newcomers pay you more that what you paid yesterday, because they expect it to rise tomorrow so they sell it at profit.
Why a Ponzi scheme? ... because there is NO real wealth creation by all its juggling, yet newcomers help pay early investors with their fresh money ... the classic definition.
2) instead, make interest rates work FOR you.
How?
YOU get the loan at 1.7% and YOU lend it to others at 8-15% , as much as borrowers accept.
You pocket the difference, which is much higher than ANY Stock investment can offer.
But ... but .... why would anybody borrow from you, instead of an established Bank or Financial institution?
Think again: they demand lots of things, stable income, fixed home address, reasonably good salaries, clean credit history, prefer to deal deal in certain amounts only, have preferred loan repayment times, which may or may not suit borrowers, the works, while you can be way more flexible ... and relatively safe too IF you stick to people you know.
My personal observation and guess others noticed same or similar is that MOST people take any loan/credit offered, even if they don´t really need it.
With due respect, even you are doing that now.
But ... but ... why would anybody pay 8-15% when cheaper (Bank) loans are available?
a) reread what I wrote above about asking for a loan annoyances and red tape.
b) does people pay 20% or higher for loans?
They do it all the time, without even flinching ... they DO use credit cards, don´t they?
Serious, I guess this is the best money-multiplying advice you got so far.
I am not joking.
I think you should also budget for a few thugs to collect those loans that default 😎
Jan
Noted, there are some Norwegian companies that are interesting. Even some quite good dividend stocks.
@JMFahey I think the risk/reward ratio is a bit too big for my liking. It's also relatively easy to get loans from banks for refinancing credit card debt here, the only people I'd get in contact with would probably be spelled something like BIG TROUBLE!!!
Your choice 🙂
Only "nice and easy" means microscopic profit, if at all.
Maybe, although payday loaners seem to be making a killing with their "business" yet I don´t see a pandemic of broken legs and horse heads in a mailbox.
https://www.investopedia.com/terms/p/payday-loans.asp
People seem to pay, or refinance for a higher sum; maybe they know something you don´t.
Only "nice and easy" means microscopic profit, if at all.
Maybe, although payday loaners seem to be making a killing with their "business" yet I don´t see a pandemic of broken legs and horse heads in a mailbox.
https://www.investopedia.com/terms/p/payday-loans.asp
People seem to pay, or refinance for a higher sum; maybe they know something you don´t.
Some companies offer a monthly investment plan here, with insurance as a bonus.
That accumulates, and maybe a similar scheme is available in Norway.
You can put about half your monthly stipend in those after checking their track record.
On the long run, save about 50% of your income, you will need to maintain your standard of living when you retire.
Just see what you would spend on basics 30 years back, think of inflation.
Another long term goal is a rental property, for old age income.
Short term, reduce high interest loans.
That accumulates, and maybe a similar scheme is available in Norway.
You can put about half your monthly stipend in those after checking their track record.
On the long run, save about 50% of your income, you will need to maintain your standard of living when you retire.
Just see what you would spend on basics 30 years back, think of inflation.
Another long term goal is a rental property, for old age income.
Short term, reduce high interest loans.
That was about my first monthly mortgage payment -- in 1977!
In the US figure spending 35% to 40% of your income on housing.
Oh, definitely; I guess that´s universal.
Here in Argentina, and I don´t find it an exception but part of that generic rule, for a decent small appartment you need about 50-60% of a minimum wage, so you need to either approach twice a "Mc Donald´s salary" to live with the remainder, or you need two minimum wage earners under the same roof to make ends meet.
Any less and (sadly many) youngsters can´t live on their own so stay at home for a long time.
Oh well.
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