What can I do with $2000?

pickles · 18 November 2007

If you are new to all of this, the last thing you should do is CFD's they are much more dangerous than taking a long position. Check out all the cheaper shares, there are some very good companies that are quite cheap, buy them on a big low and sit on them!!
Good luck.

burglar · 3 December 2010

Tysonboss1 said:
you are right you are only young once,.... so don't miss the opportunity to set yourself up for life. now is the best time in your life to get some net worth behind you,.... It will be alot harder when you are 30 with kids and a 10year old car that used to be fully sick.

burglar so laughed when he read this and thanks Tysonboss1 for making his day/night! *appropriate emoticon*

cheers.

nulla nulla · 3 December 2010

Your credit card would have an interest rate between 16% - 22%. Any spare cash you have, pay off your credit card.
Reign in your credit card spending, month to month, until you are able to pay each months credit card bill in full on the due date and avoid the interest trap.
Then open your CDIA account (even if you do it the way of borrowing $3k from your parents to open the a/c then give them their money back). Then look at ploughing the money you are saving into your investment choice.

pierrebfg · 11 December 2010

Your credit card would have an interest rate between 16% - 22%. Any spare cash you have, pay off your credit card.
Reign in your credit card spending, month to month, until you are able to pay each months credit card bill in full on the due date and avoid the interest trap.

I agree with you need to reign in your credit card spending but to help get it under control keep your eye open you can get a credit card with a transfer balance to save on the interst. I got one from Suncorp with 3.9% for the life of the balance. Yes you have to pay $200 annual fee but on 10k you save a lot of dollars but the key is to put the credit card in the draw and not use it at all as any purchases are on a high interest and you have to pay the balance back first before any new purchases. But if you are able to put the card in the draw it is a way to help pay your debt of sooner. Keep your eye open I got my one about 4 or 5 months ago and it has already saved me a lot of dollars. I did this with a personal loan which was at 14% and kept going up.
DYOR the internet is a powerful tool if used correctly.

Assasin · 11 December 2010

Not sure life without credit card debt is possible for the young and up and coming. By the time you pay out the card, get some savings, invest the savings while learning then you will need a credit card to live again and purchase those little needs and wants.
Credit cards are now an accepted part of growing up rather than shunned upon in my early years. (i'm 46).
My opinion- get into trading asap, learn as much as you can, accept mistakes and revel in your wins as your going to have a credit card anyway.

Adrian. · 23 December 2010

As a Gen Yer I can say that is definitely possible to have your needs and wants without a credit card. You can have your needs and wants and savings, all you need is a budget. Also with the invention of debit cards I see no reason at all for credit cards (Internet purchases and concert tickets used to be an excuse).

Garpal Gumnut · 23 December 2010

Mate, I would buy 40 cartons of Dry Ice Platinum.

They retail at about $56 a carton but you should be able to get a bulk discount.

Sell them to friends at a discount or drink them all and work out a way to start with more than 2 grand.

Its bugger all money to make your fortune these days.

gg

IB12 · 23 December 2010

mogley said:
Ok my first post guys.

I'm 22 and been pretty irresponsible with my finances so far. I drive a car that costs me way too much insurance and petrol, I spent $10 000 on my credit card buying things, travelling to Europe, pissing away money on piss and girls. I'm your average Gen-Y'er and I am going to piss away my money on such frivolous things as long as I practically can cause you only young once right? Anyway, that aside...

Basically, i'm in a lot of debt but I work enough to keep me afloat. As a result of my indiscriminate ways I can only manage to save up about $2000 in capital and am really keen on getting started. I think I could whinge my way into a $3k loan from my parents to help me sign up a CFD account with Comsec and then cash out the $3k and return it to them.

Unfortunately, $2000 isn't a whole lot of capital and even with Comsec's $19.95 brokerage, the brokerage is quite hefty.

I have no experience trading although I studied Finance and have a pretty good grasp of all the concepts I wanted some more practical advice.

Is it even worth my while? I am thinking of having a portfolio comprised mostly of blue-chips and am focused on capital gains rather than income.
I'm willing to lose all the $2000, since I'm in this for more of a learning experience and getting my feet wet VS trying to turn $2000 into $20 000.

Given the proportionate cost of brokerage, a buy and hold strategy seems to be the most profitable yet given the performance of the market lately, I'm not sure if there is anymore room to give. Plus, i'm not in it for the returns as much as I am in it for the learning experience. Making money wouldn't hurt of course , but i'd rather take risks and learn rather than buy, hold and forget for the sake of return.

Put it in the bank and get a job.
Otherwise, there was a chap on here who started a thread called "Investing my first 2k". I have a difference of opinion though.

joea · 24 December 2010

mogley said:
Ok my first post guys.

I'm 22 and been pretty irresponsible with my finances so far. I drive a car that costs me way too much insurance and petrol, I spent $10 000 on my credit card buying things, travelling to Europe, pissing away money on piss and girls. I'm your average Gen-Y'er and I am going to piss away my money on such frivolous things as long as I practically can cause you only young once right? Anyway, that aside...

Basically, i'm in a lot of debt but I work enough to keep me afloat. As a result of my indiscriminate ways I can only manage to save up about $2000 in capital and am really keen on getting started. I think I could whinge my way into a $3k loan from my parents to help me sign up a CFD account with Comsec and then cash out the $3k and return it to them.

Unfortunately, $2000 isn't a whole lot of capital and even with Comsec's $19.95 brokerage, the brokerage is quite hefty.

I have no experience trading although I studied Finance and have a pretty good grasp of all the concepts I wanted some more practical advice.

Is it even worth my while? I am thinking of having a portfolio comprised mostly of blue-chips and am focused on capital gains rather than income.
I'm willing to lose all the $2000, since I'm in this for more of a learning experience and getting my feet wet VS trying to turn $2000 into $20 000.

Given the proportionate cost of brokerage, a buy and hold strategy seems to be the most profitable yet given the performance of the market lately, I'm not sure if there is anymore room to give. Plus, i'm not in it for the returns as much as I am in it for the learning experience. Making money wouldn't hurt of course , but i'd rather take risks and learn rather than buy, hold and forget for the sake of return.

Go and buy a TV and watch the market go up and down.
When you realise it does, learn about it.
If you are only in for the learning experience, then the more you lose the more you learn.

Cheers.

What can I do with $2000?

pickles

burglar

nulla nulla

Positive Expectancy

pierrebfg

Assasin

Adrian.

Garpal Gumnut

Ross Island Hotel

IB12

joea

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