Quickest way to save for investing?

Question

I'm new to investing and i know i have to have money of course. My question is as im saving money to invest how should i save it so that it grows quickly. Savings account, IRA, 401k, bonds, mutual funds?

What are your suggestions?

Thank you.

What are your suggestions?

Thank you.

Account Closed · Answer

The only thing that matters is your savings rate.  Increase that.

Alina Trigub · Answer

@Samuel J Gonzales IV

Welcome to BP community!

As others mentioned, increase your savings. If you need to reinforce the message, read "The Richest man in Babylon". Great ancient book. And find some side hustles that can help you increase your income.

Best!

Brian Ellis · Answer

Agree with Frank, don't bother putting your savings into a Roth IRA, 401k, or mutual funds until you have a little more income stream. Because once its in there, you will pay the price to take it back out. An online savings with 2% earnings is pretty good. Id suggest getting yourself an online APP where you can transfer funds quickly.

I will force myself to throw money into a savings account every week by the click of a button. Then my spending habits decrease drastically.

Before I purchased my second property, I would sell things on Ebay to increase my income. I didn't buy new clothes, or irrelevant things. I refrained from going out to dinner. I kept a strict budget, and quickly the savings added up to a point where I could cover closing costs. If I didn't do all that stuff, I would have never gotten the deal. The extra $1000-$5000 can make the world of a difference.

Lien Vuong · Answer

@Frank Wong and @Brian Ellis has the right idea. Someone in your position has probably already tried to slim down their monthly expenses and are capped at a level of income at the moment. Trying to find a means of a side hustle would be ideal at this point to create more seed money.

When I was 22 I realized how much I was paying in interest with my student loans and decided to get a part time job (3 days/week) on top of my full time and was dedicated all of those funds into my student loan payments. Because I was so hyped up on 'killing' that debt, I was able to achieve that goal in 24 month's time. That was 6 years ago and my friends who graduated still have another decade in payments.

Moral of the story is that shift your mindset and figure out the right strategy for income creation and you'll have those funds in no time. After that, the sacrifices seem meager compared to the benefits of financial freedom.

Justin Frye · Answer

Also remember that it is easier to save a $100 than it is to make a $100 bucks in most cases.

Craig Jeppesen · Answer

It depends on how much you can save over what time period to save up for your down payment.  If you need less than a year savings acct, 1-5 years a cd, 5+ years stock market (mutual funds). the stock market can go down in value in the short run and having money in a cd ties up your funds if a deal comes up.

I don’t use retirement funds for re investing but many people open up solo 401ks or use Ira acts. Make sure you understand it if you go that route.

Frank Wong · Answer

Hi Samuel,

Savings is great and certainly something you need in order to invest but you got the wrong mentality.  Your question should not be about saving it should be about making extra money.

How can I increase my earning potential?  What high-value skills do I need to compete in today's working environment?   What side hustle can I do to make an extra $1,000 a month?

If your income is low saving dimes and nickels won't get you rich. I am not trying to put you down in any way or suggest your income is low. I am just trying to open your mind and anyone else's to a different way of thinking. Once you flip your mindset the money will increase and the savings along with it.

My advice on your savings put it in online savings checking account and earn 2%. Don't play around with everything else.  You can't risk losing the money bc you need to save it for your investment property.

Account Closed · Answer

@Samuel J Gonzales IV get real, real cheap & find a way to hustle up some more cash :) real estate related is great, non is accepted as well.

Samuel J Gonzales IV · Answer

Thank you everyone for the advice you have given me.  I do have multiple streams of income but i could fit in one more.  I'll look more into the 2% savings and IRA.

Thanks everybody.

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