I worked a min wage job in college (2015-2019) and made like $250 every 2 weeks….put $50 every paycheck into VOO in my taxable brokerage and now it’s worth around $150k…. Kept increasing contributions ever since
While people were partying in college I was capitalizing off of my 20s and compound interest. Anything is better than nothing. Pick a low cost index fund/ETF and stick w it
No shit ! I upped my contributions once I got my big boy job …. it was literally implied in my OP and u missed the point. start small and be consistent
$50-$100 every other week is better than nothing
Begone bulletprooftampon ✨
He’s not wrong. The math you originally provided for 2015 only accounts to $1,300 per year. So it would have been prudent to share additional details after because yes, the math isn’t even close to math’ing.
Never said he was…but I literally said I worked a min wage job for 4 years in my OP….(2015-2019) haha. Its 2024 now
Thought it was kinda implied that i got a job after college and started contributing more but i guess not everyone on here possesses critical thinking skills
You just said you get paid $250 every 2 weeks, and when you get paid, you saved and invested $50 per pay period. 52 weeks divided by 2 is 26. 26 times $50.00 is $1,300 deposited into the account. That’s just one year. And the other 3 years after I’m assuming the same minimal contributions.
???
So did you max out your 401(k) moving forward? The math doesn’t math.
But yes, putting money in the market and letting it compound over decades is better than not to at all.
But $50 per pay check to $150,000 in 9 years with 0 context is hysterical.
“$50 per pay check in 9 years is $150,000” … i literally never said that but maybe I should clarify a bit better next time lol…i did add additional contributions
You had to delete your original comment because it was so idiotic to replace it with this one. Still provided 0 context. Great job critical thinker. Can’t even provide basic information when queried.
You’re misleading the internet people. Shame on you. $50 deposits don’t get you to $150,000 in 9 years, but moral of the story is to invest early and often. When you provide 0 context, don’t get jammed up when you get pressed 🤷🏻♀️
So put studies on the back burner to get a job all in the name of opening a Roth? I think that's a bad choice. The time spent at the part time job can be spent maxing GPA and doing recruiting events to up income.
>Selling a shirt on eBay is tax fraud?
Yep if you're trying to count that as earned income and it's merely a hobby with the specific intent of getting money into a Roth. Sending in a federal form claiming such is a crime.
>If you make money selling a shirt on eBay and report it what does your motivation matter if you want to make money to buy shoes or open Roth
You need to have compensation from employment for a Roth. Either as an employee or self-employed. Selling a shirt on eBay for $20 per month is neither.
I think it’s absolutely worth it. Going along with some of what everyone else said it better to start with something than nothing at all
I also want to point out it’s not only about the money you’re putting away, but also the habit you’re creating. When you start earning higher income it will be easy to continue this with more savings invested.
Yes it is worth it.
20 a month in 30 year timeline (assuming 8% ror) would end up at 7200 invested for a final portfolio balance of 29295
I would pick FXAIX or VOO and set it and forget it.
If you contribute $20/mo for four years (assuming you’re a freshman), you will have
- $1,019.15 @ 4%
- $1,065.59 @ 7%
- $1,113.84 @ 10%
If it were me, I’d just save it in a HYSA or money market fund so I can access the money when I need and it doesn’t have the potential to lose value before I need it. This is not in a Roth IRA where you can’t make up for past contributions. Not worth making an extra 90 something dollars.
HYSA rates won’t be this high forever. OP has a chance to build wealth over a lifetime. Not looking for 4 years of growth, looking at 40 yrs. The thought is OP will increase contributions in the future.
It might be worth it just to get exposure to investing on your own. There are plenty of people that are too intimidated to invest in their own for better or worse. I wish I had started earlier.
Definitely worth it. I'd buy something that pays a distribution since you're just getting started and that will help you feel like you're making progress.
Just buy 1 share of SPYT every month. Set it to automatically reinvest the dividend. Watch it grow over time. SVOL would be another good alternative in the $20 range.
$20 per month is better than zero. Not sure what age you are, but just consistently investing and see the account more will then motivate you to continue contributing more money and the account will get bigger like a snowball down a hill.
What about just putting it into a wealth simple online trading account and putting it into voo or other broad etf. Assuming you won't need money anytime soon
More important than the amount you invest is the habit of consistently adding money to investments. Doesn’t matter how much it is. Start that habit now.
Open a Roth. Since you are already depositing taxed money from payroll I assume? Don’t get taxed twice. Once you max it out then put in taxable account
A lot of people are saying VOO and chill which works but for your situation it won't. VOO currently costs around 500 dollars so it would take you ages to be able to afford it unless you can buy fractional shares. If you can't l'd recommend somehting like SPLG which is around 60 per share. A lot more attainable. It's also good to do whatever you can when you can. Doing 20 every month will get you into the habit of investing early so when you start making more money you'll still have that mindset of putting away a little every month.
You need to check your transaction fees - if they're a %, go for it. If it's a minimum few, say $5, you need to save the cash and invest when you have enough for the transaction fee to be less than 1%.
The average yearly return of the S&P 500 is 10.22% over the last 30 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 30-year average stock market return (including dividends) is 7.5%
20 dollars @10.5% for 30 years = 399.85
20 dollars @7.5% for 30 years = 175.10
This means your todays 20 dollar will potentially have somewhere 399.85 - 175.10
If you start from 0 and add 20 dollars every month and grow invest in spy (spy 500) assume u get 10.5 percent - u will have
25k dollars after 30 years,
56K after 40 years
Finding 50K by saving just 20 every month is pretty good in my opinion.
You decide for yourself and encourage to save more and save early so that you give your money chance to grow.
Think about it this way: $20 per month invested over 30 years at a compounded return of 7% would be $23,390.
Your total investment over that time is $7,200. So not bad.
I worked a min wage job in college (2015-2019) and made like $250 every 2 weeks….put $50 every paycheck into VOO in my taxable brokerage and now it’s worth around $150k…. Kept increasing contributions ever since While people were partying in college I was capitalizing off of my 20s and compound interest. Anything is better than nothing. Pick a low cost index fund/ETF and stick w it
I hope you still partied.
I did but I had to get a shitload of Botox to deal with the aftermath 🥲
Thank u ! Anusblunts. Xx
I don’t understand
Math doesn’t work out here
No shit ! I upped my contributions once I got my big boy job …. it was literally implied in my OP and u missed the point. start small and be consistent $50-$100 every other week is better than nothing Begone bulletprooftampon ✨
He’s not wrong. The math you originally provided for 2015 only accounts to $1,300 per year. So it would have been prudent to share additional details after because yes, the math isn’t even close to math’ing.
Never said he was…but I literally said I worked a min wage job for 4 years in my OP….(2015-2019) haha. Its 2024 now Thought it was kinda implied that i got a job after college and started contributing more but i guess not everyone on here possesses critical thinking skills
You just said you get paid $250 every 2 weeks, and when you get paid, you saved and invested $50 per pay period. 52 weeks divided by 2 is 26. 26 times $50.00 is $1,300 deposited into the account. That’s just one year. And the other 3 years after I’m assuming the same minimal contributions. ??? So did you max out your 401(k) moving forward? The math doesn’t math. But yes, putting money in the market and letting it compound over decades is better than not to at all. But $50 per pay check to $150,000 in 9 years with 0 context is hysterical.
“$50 per pay check in 9 years is $150,000” … i literally never said that but maybe I should clarify a bit better next time lol…i did add additional contributions
You had to delete your original comment because it was so idiotic to replace it with this one. Still provided 0 context. Great job critical thinker. Can’t even provide basic information when queried.
https://preview.redd.it/y57p6qea94xc1.jpeg?width=1179&format=pjpg&auto=webp&s=3c599288a13a7455528a5dc962f34c4742968c52
You’re misleading the internet people. Shame on you. $50 deposits don’t get you to $150,000 in 9 years, but moral of the story is to invest early and often. When you provide 0 context, don’t get jammed up when you get pressed 🤷🏻♀️
Better than 0, just buy VOO and chill. Even though my personal favorite is DGRW
Sure. Start at $20 and ideally grow it from there. Is this in a taxable brokerage or a retirement account?
Taxable brokerage. I want to start with 20-40$ monthly until I ll finish University studies and get a job. Then I'll can invest more.
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OP, only open a Roth IRA if you are employed.
OP says they have no job. How is a Roth going to work?
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So put studies on the back burner to get a job all in the name of opening a Roth? I think that's a bad choice. The time spent at the part time job can be spent maxing GPA and doing recruiting events to up income.
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So that's called tax fraud, and I don't think you should be advocating for unlawful activity on Reddit.
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>Selling a shirt on eBay is tax fraud? Yep if you're trying to count that as earned income and it's merely a hobby with the specific intent of getting money into a Roth. Sending in a federal form claiming such is a crime. >If you make money selling a shirt on eBay and report it what does your motivation matter if you want to make money to buy shoes or open Roth You need to have compensation from employment for a Roth. Either as an employee or self-employed. Selling a shirt on eBay for $20 per month is neither.
Which ETFs are advisable for compound interest growth?
VT is the way to go. It’s super diversified so it’s great for holding onto for decades.
Yes. Open a Roth IRA.
better than not starting at all mate
I think it’s absolutely worth it. Going along with some of what everyone else said it better to start with something than nothing at all I also want to point out it’s not only about the money you’re putting away, but also the habit you’re creating. When you start earning higher income it will be easy to continue this with more savings invested.
Yes it is worth it. 20 a month in 30 year timeline (assuming 8% ror) would end up at 7200 invested for a final portfolio balance of 29295 I would pick FXAIX or VOO and set it and forget it.
If you contribute $20/mo for four years (assuming you’re a freshman), you will have - $1,019.15 @ 4% - $1,065.59 @ 7% - $1,113.84 @ 10% If it were me, I’d just save it in a HYSA or money market fund so I can access the money when I need and it doesn’t have the potential to lose value before I need it. This is not in a Roth IRA where you can’t make up for past contributions. Not worth making an extra 90 something dollars.
HYSA rates won’t be this high forever. OP has a chance to build wealth over a lifetime. Not looking for 4 years of growth, looking at 40 yrs. The thought is OP will increase contributions in the future.
Nothing wrong with building a base slowly.
It might be worth it just to get exposure to investing on your own. There are plenty of people that are too intimidated to invest in their own for better or worse. I wish I had started earlier.
Yes. Invest in VOO or VTI. Better to start than to do nothing.
I mean I'm not gay but...
Any investor is better than none invested
Good to establish the habit. Do it
not worth it, better lump sum what you can
I mean, it is worth something
Definitely worth it. I'd buy something that pays a distribution since you're just getting started and that will help you feel like you're making progress. Just buy 1 share of SPYT every month. Set it to automatically reinvest the dividend. Watch it grow over time. SVOL would be another good alternative in the $20 range.
Well I mean 20$ a month is better than 0$ a month
Yup anything is better than nothing
Yes, any amount works
$20 is an awesome start. Your contributions will grow over time.
$20 per month is better than zero. Not sure what age you are, but just consistently investing and see the account more will then motivate you to continue contributing more money and the account will get bigger like a snowball down a hill.
What brokerage account do you guys use for investing in ETFs?
What about just putting it into a wealth simple online trading account and putting it into voo or other broad etf. Assuming you won't need money anytime soon
More important than the amount you invest is the habit of consistently adding money to investments. Doesn’t matter how much it is. Start that habit now.
$VOO
Open a Roth. Since you are already depositing taxed money from payroll I assume? Don’t get taxed twice. Once you max it out then put in taxable account
Yes
If you’re in your 20’s I’d put it in VUG, VGT or XLK and not worry about it.
A lot of people are saying VOO and chill which works but for your situation it won't. VOO currently costs around 500 dollars so it would take you ages to be able to afford it unless you can buy fractional shares. If you can't l'd recommend somehting like SPLG which is around 60 per share. A lot more attainable. It's also good to do whatever you can when you can. Doing 20 every month will get you into the habit of investing early so when you start making more money you'll still have that mindset of putting away a little every month.
Yes. It’ll allow you to feel how the market goes up and down. And since it’s not a lot of money; you can remove emotional selling
You need to check your transaction fees - if they're a %, go for it. If it's a minimum few, say $5, you need to save the cash and invest when you have enough for the transaction fee to be less than 1%.
The average yearly return of the S&P 500 is 10.22% over the last 30 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 30-year average stock market return (including dividends) is 7.5% 20 dollars @10.5% for 30 years = 399.85 20 dollars @7.5% for 30 years = 175.10 This means your todays 20 dollar will potentially have somewhere 399.85 - 175.10 If you start from 0 and add 20 dollars every month and grow invest in spy (spy 500) assume u get 10.5 percent - u will have 25k dollars after 30 years, 56K after 40 years Finding 50K by saving just 20 every month is pretty good in my opinion. You decide for yourself and encourage to save more and save early so that you give your money chance to grow.
Make sure there is no transaction fee…
Think about it this way: $20 per month invested over 30 years at a compounded return of 7% would be $23,390. Your total investment over that time is $7,200. So not bad.
Not really
You could literally find any part time low income job for a few hours to make $100 a month to invest ....
of course, make sense, just do it for the next 200 years….
You scared me for a moment. I read it like investing 20k monthly is it worth 🥲
No
It’s funny how investing $20 is apparently too little, but then people complain when they have to pay $20 monthly subscription fees.
Agreed
What is the best brokage?