What can I do with $5,000 Dollars?

[Makala Lee-Norwood]

Hello All,

My name is Makala and I am very eager to buy my first property. I have spent months trying to gather as much information as possible, but it seems as though the learning for Real Estate is never ending, which is wonderful. I currently have $5,000 to work with as a start and was wondering if it is even possible to do anything with such a low number? Investing the the Bay Area is so expensive, should I consider looking out of state?

[Frank Wong]

Hi Makala,

$5k is not enough to invest in the Bay or in another state. Don't put it into an IRA. You don't want the only amount of money you have trapped into a retirement account. Just do the math. If you took the $5k and had a 12% return for 10yrs straight compounded it would be $15,529 which doesn't change your life.

Keep saving the money don't bother investing it into anything because the honest truth is that it won't be enough to make an impactful dent into your life.  Just keeping it completely honest here and showing you the best route.  Instead, keep saving away and find a side hustle and stack cash that way.   

Number 1 thing you need is to increase your income. 2nd decrease your expenses.