Teenager doesn't know what to do with his "considerable" amount of money

LH32k on 10/07/2017 - 23:38

[Sorry for the clickbaity title]
Hi everyone,

Let me just start off by letting everyone know that this is my first topic on OzB, I've been silently browsing for a few months now. Sometimes wasting hours just read interesting topics, threads and discussions here. I'd have to say my favorite was the AMA from the Victorian Cop. Sorry for not contributing :(

Anyways down to the point, I'm a teenager in my last year(s) of high school and have saved up quite a bit of money through various casual jobs but mainly through crypto-currencies, buying/selling and a few other small ventures. I've set aside around 45k for my future self and am not sure to do with the remaining ~25k. I have thought about going bigger into trading but it just seems like a very time consuming task, and with my HSC around the corner I do obviously want to focus on that.

Investment was something I have seriously considered but never really had the balls to go all in; and Before all the "buy cool shit" comments, I already own basically everything that I need and/or want, blown alot on useless shit that I'll probably never use. The only thing left would be a house(lol) and car which I can't quite justify as the only place I go to is school. The last option would just be to save it all which is obviously the smart choice, but I feel like I'm wasting it if I'm not making anything from it. I could be silly but that's just how it would go and I'd probably get tempted anyway and do something stupid.

Yeah that's basically it, Let me know if this post is in the wrong category or whatever and I'll do my best to get it sorted.

Cheers :)

Financial

Comments

  • xoom on 10/07/2017 - 23:49
    +16

    keep saving for a house. you may not end up buying one in the end but you will have that money for other things should you decide not to.

    no point wanting a house if you never save up for one because you can want all you like but if you have not even a deposit for one. you get nowhere.

    kinda build it and they will come thing.

      • xoom on 10/07/2017 - 23:56
        +17

        in grand scheme of things 25k is chump change for someone so young who have their whole working life ahead of them. perhaps invest it in your education.

        • H32k on 10/07/2017 - 23:59

          What would you suggest? Also yeah I'm aware 25k isn't much in the grand scheme but I am still at the beginning of my journey.

        • xoom on 11/07/2017 - 00:03
          +4

          @H32017: study something you will enjoy. spend the money on that and work in that very field you enjoyed studying. the money will come.

          ps. i too am likely to inherit my parents property. but i still insisted on paying my own way. buying my own property.

          its never really a problem having too much property if you think about it.

        • H32k on 11/07/2017 - 00:04

          Yeah fair enough, but at this stage it isn't something I have any experience in, whereas I was more looking for something remotely related to my previous ventures if possible. Thanks again for the input

        • montorola on 11/07/2017 - 13:31
          +14

          @H32017:

          Forget the house, I think you should save up for an 80k car…

          It's all about the respect y'know lol

        • realfancyman on 11/07/2017 - 15:44

          @H32017: Looks like you're already set on saving the money, so why post here?

        • H32k on 11/07/2017 - 16:29

          @realfancyman:

          Nah, actually the complete opposite, I dont want to save it. I'm asking what I should do with it to either maximize profit or aid my future self

        • Wallyt99 on 12/07/2017 - 04:04

          @montorola: its an investment in his future

        • TheOneWhoKnocks on 13/07/2017 - 22:52

          @montorola: That guy will never catch a break.

      • psylence on 11/07/2017 - 14:24
        +4

        Dont forget people live into their 80s and 90s now so depending when they had you, you might not inherit a house untill your 65 eg. If they were 25 when they had you

        Some investments I like

        Robotics Etf- Collection of companies focused on automating industry has done well and lots of room to grow

        Duxton Water - water entitlements from murray darling, water will continue to become more in demand for agriculture and considering climate change this could be significant

        Do your research

        • krunchymoses on 13/07/2017 - 21:42

          Got downvoted pretty hard for the inheritance comment but at least he is honest. A lot of people like to hide the fact that they are gonna be swimming in 6-7 figures when their parents pass on. At least pay him that.

          If you want to go to uni, consider using the money to supplement your centrelink and study full time in a cool share house right near uni. If you were going to USYD, live in Newtown. Buy drinks. Have an amazing time at uni. You'll never forget those years if you are in the right place and can afford a drink or two.

  • [Deactivated] on 10/07/2017 - 23:59
    +25

    Blackjack and hookers

    • H32k on 11/07/2017 - 00:00
      +25

      I said 25k not 25m

      • [Deactivated] on 11/07/2017 - 00:00
        +90

        I didn't say GOOD hookers.

        • H32k on 11/07/2017 - 00:01
          +6

          Fair enough haha

        • montorola on 11/07/2017 - 13:30
          -2

          @H32017:

          Mate you can pull girls with $0. You just have to give them the "illusion" you're cashed up lol

        • Hirolol on 11/07/2017 - 20:18
          +16

          @montorola:
          I heard showing off your eneloop collection works well.

        • Munki on 11/07/2017 - 22:23
          +1

          @Hirolol: Don't tell them the secret!

        • ProjectZero on 13/07/2017 - 09:04

          I wanna see what a 25m hooker looks like… damn… if they don't look like Miranda Kerr or something I'm out…

  • spackbace on 11/07/2017 - 00:01
    +11

    If going into tertiary study - Save it all for fees/books and maybe a cheap car to get around

    If going straight into work - house deposit and cheap car to get around

    Oh and well done :) I hope daddy didn't give you a small loan of a million dollars :P

    • H32k on 11/07/2017 - 00:02
      -1

      Yeah I plan on going to uni, also

      "Oh and well done :)"

      Please elaborate

      • spackbace on 11/07/2017 - 00:03
        +4

        Well done for being able to get that sort of coin, surely would've had some skill involved… Maybe?

        • H32k on 11/07/2017 - 00:06
          +3

          Yeah but when its something you are having fun doing, it just kind of happens then you step back like "wow, did I really just do that". Sort of like when you see a long journey and at the start you're like "There's no way I get through this" then when you reach your goal you look back like "Holy sh*t, I really just did all that".

    • Cwong14u on 11/07/2017 - 12:20

      I'm waiting for a Suzuki sales pitch…

  • Findo on 11/07/2017 - 00:03
    +1

    Maybe throw them into stable dividend stocks with DRP to build up a solid portfolio?

    • H32k on 11/07/2017 - 00:04

      No idea what that means… Any chance you could explain further?

      • ascorbic on 11/07/2017 - 00:32
        +5

        DRP (dividend reinvestment plan) lets you take advantage of compounding while avoiding brokerage. When you opt in for it, the dividend is paid directly as additional stock rather than cash. Not every company has a DRP option but most large ones do.

        • Findo on 11/07/2017 - 00:46
          +3

          Most dividend paying stocks have franking credits to help offset your tax bill too

      • gimli on 11/07/2017 - 19:44
        +1

        I think buying shares is a really good idea. You will not have any real financial pressure by the sounds of it for many years so it means you can think long term.

        Yiu should be able to get 8% return per year which will add up in the next 10years with compounding.

        If you have time read up of strategies to pick stocks if not read up about indexed funds.

  • altomic on 11/07/2017 - 00:04
    +82

    some will say you should invest it, some will say save it for a house deposit, but the best advice is to give to altomic.

    • altomic on 11/07/2017 - 00:04
      +71

      that's genius!

      • H32k on 11/07/2017 - 00:04
        +4

        haha

    • altomic on 11/07/2017 - 00:05
      +9

      that would earn like ….more than the banks

    • altomic on 11/07/2017 - 00:05
      +8

      wow, great idea, How can I get in to this money making, wise investment?

    • xoom on 11/07/2017 - 00:05
      +12

      subtle. very subtle. like swatting a fly with a shovel subtle.

    • spackbace on 11/07/2017 - 00:07
      +6

      Altomic didn't say bikies… Now I don't know if you're really altomic, or someone accessing his account…

      • Halsmich on 11/07/2017 - 00:11
        +16

        Probably his employer

      • xoom on 11/07/2017 - 00:14
        +3

        hacked account. i blame the russians.

      • yummycoot on 13/07/2017 - 08:24

        metaaaaaaaaaaaaaa

    • Wystri Warrick on 12/07/2017 - 06:22
      +2

      altomic you are the bomb

    • PJC on 12/07/2017 - 11:20

      Absolutely true.

  • AlienC on 11/07/2017 - 00:35

    Potatoes and anti rat devices.

    • Tnetennba on 11/07/2017 - 12:56
      +1

      anti rat devices

      What do you recommend? Norton, avast?

      • AlienC on 11/07/2017 - 16:31
        +1

        Panda Security.

  • [Deactivated] on 11/07/2017 - 01:02

    you say you have done various casual jobs, seems you have some experience at a young age are any of the businesses worth saving for to open up your own shop/business since your not interested in housing investment.

    • H32k on 11/07/2017 - 11:48

      Interesting idea, never really thought about it in depth but I might look into possible areas for it.

      Thanks for the input :)

  • PJC on 11/07/2017 - 01:36
    +2

    Buy any brand new car and store it. Auction it 40 years later and somebody will consider it a style statement. I have even seen that happen with a horrible car like a 1970 Trabant.

    • xoom on 11/07/2017 - 08:02
      +46

      An 80k car is the only high yielding investment worth considering.

      • cypher67 on 11/07/2017 - 10:40
        +19

        I clicked on this post just to find someone who referenced the $80k Car investment, thank you for not disappointing me

        • R-Man on 11/07/2017 - 11:11
          +2

          haha I too was browsing the comments til I found it

        • gimli on 11/07/2017 - 19:40
          +1

          @R-Man: yep it's the only reason I keep coming back to ozbargain!

        • aimpacc on 12/07/2017 - 19:43
          +1

          ayy me too, op should have a westpac offer lined up soon too ;)

    • altomic on 11/07/2017 - 09:43
      +2
      1. buy up crappy 1980s era holdens and fords - i.e. $50 - $100 each.
      2. store them some where for 40 years.
      3. ??????
      4. profit
      • JIMB0 on 11/07/2017 - 10:58
        +3

        That ship has already sailed. Have you seen the prices people want for some of them cars now?

      • H32k on 11/07/2017 - 11:48

        Find me the car for 50 (working) and ill buy one for both of us :P

    • PJC on 11/07/2017 - 10:58
      +11

      Oh dear I have offended a Trabant owner. Never mind, you can double its value instantly by filling it with petrol.

  • burns13 on 11/07/2017 - 05:30

    Keep Saving. You will find a way to spend it at Uni. No doubt at all in my mind.

    • H32k on 11/07/2017 - 11:49

      Yeah seems like the safest idea, but as I mentioned in the post; If I do nothing with at least some part of it, I feel like its being wasted. I do see your point thought.

      Thanks for replying :)

  • exulted on 11/07/2017 - 07:46
    +2

    You have achieved making money before your twenties from primarily trading something which is what most people try and never achieve anything before retirement age.

    My suggestions: use your spare time to develop a professional training program on what you've done, this may include:

    1. Write an eBook and possibly a hard copy book and develop a training video for Udemy or similar and sell these for a small fee to the masses,

    2. Knock up an education course in what you've done and do a quick 1 hour free session where you introduce yourself and people will love ou for being a kid who's made lots of money before finishing his HSC… THEN:::::

    3. Charge those people who have done your free seminar $250 (or some other fee of your choosing, sometimes the higher you go the more people you get interested) a pop for you to talk to them for a couple of hours and teach them how they can do it (but ensure you have a statement saying your educational information is general advice only)

    Seriously good luck

    PS finish your HSC! But speaking from someone that has done the uni thing, in my view uni is the antithesis of making anything more than rat race money

    • H32k on 11/07/2017 - 11:50

      First of all, thanks for taking the time to typing all that haha.

      And yeah I have considered that, but what I did was basically just common sense and anybody could do the same so I don't really see the value in it.

      • exulted on 12/07/2017 - 06:58
        +1

        Ok now I'm interested

      • phluffed on 12/07/2017 - 14:26
        +1

        NEVER under estimate the value of common sense, because it isn't all that common these days!
        What you might think is "obvious" choices could be something others spend years working out.

        A prime example of this sort of thing is the "articles" in sites like news.com.au about turning your finances around. Usually they involve a couple who, after being in debt and seeing no hope, decided to live within their means and suddenly found "extra' money to invest in something 10 years ago and now want to help show others how to do the same.

        • PJC on 12/07/2017 - 15:00

          Well said.

  • Ryanek on 11/07/2017 - 07:49
    +5

    Cryptocurrency? Payback your parents for using their electricity.

    • Malarkey on 11/07/2017 - 10:33
      +5

      OP said he was trading, not mining.

    • H32k on 11/07/2017 - 11:51
      +1

      Mined ether for a bit and found it wasnt really profitable, tried on 1080's first and then ended up investing in 480's which are only making around 27MH/s

      And yes, I do pay for the electricity I use. However as @Malarkey said, mainly made profit off trading

      • THELEGENDS29 on 12/07/2017 - 19:15

        Did you make a good amount of money from mining? How much did you make?

  • ihbh on 11/07/2017 - 07:51
    +30

    Get a girlfriend. That will consume your considerable amount of money in no time.

  • barbarella on 11/07/2017 - 08:06
    +3

    You are so lucky to be so financially secure at your young age.
    Study and practice (career-wise) what you really really want to do - something that you are passionate about that will make you enjoy going to work. I know this is not in answer to your question but I just can't help getting my motherly advice in :)
    Take time to do lots of travel and adventuring before getting stuck into your fantastic career.
    Share just a little of your good fortune with some others much less fortunate eg. sponsor a child in a poor country or make regular donations to help many in places like Cambodia eg. Cambodian Children's Fund - have you seen what Scott Neeson is doing there to help those beautiful children who would otherwise be living on a rubbish tip? You would certainly feel good about doing that. Wishing you a happy future.

    • H32k on 11/07/2017 - 11:52

      Travel is definitely something I plan on doing after my HSC, maybe like a tour or something. Definitely something I'm keeping an eye on.

      Thanks for the input :)

  • kallico on 11/07/2017 - 08:11
    +2

    Go to uni, study something you really enjoy, pay your hecs as you go. Finish uni debt free and the world is you oyster. Good on you. You have learnt to be a saver,the best life skill you can learn

    • WhatWouldBiggieDo on 11/07/2017 - 11:51

      You wouldn't be paying your HECS as you go. HECS is a loan. You would be paying the course fees as you go

    • H32k on 11/07/2017 - 11:53

      Uni is definitely happening, still looking at potential career/study choices though.

      Thanks for replying :)

  • JIMB0 on 11/07/2017 - 08:21
    +2

    You signed up just to post this question? Are you a troll?

    • H32k on 11/07/2017 - 11:55
      +1

      As I said in the post, I have been silently browsing OzB and I apologize for not contributing more.

      I am not trying to be a troll, just trying to get some advice and spark the conversation. Definitely trying to contribute more now to make up for the past

  • Gordon61B on 11/07/2017 - 08:59
    +5

    Your post suggests you have no problem with self-discipline.

    So keeping that in mind, give yourself a sabbatical - plan a year, perhaps volunteering. In awesome places. Live in Ulan Bator for six months, teaching English. Study Mayan culture in South America.

    I echo barbarella's suggestion - travel and adventure.

    You'll come back to Oz with a far stronger picture of what to do with your life.

    I think that's worth some investment.

    I'm conservative and not very disciplined - invested with a good financial advisor and have had great results.

    • H32k on 11/07/2017 - 11:57

      Yeah, again I do plan on travelling however what you said about discipline is only part true. I have no problem with discipline depening on what it is. As for how I go to where I am, it basically just goes back to another post that I wrote

      Yeah but when its something you are having fun doing, it just kind of happens then you step back like "wow, did I really just do that". Sort of like when you see a long journey and at the start you're like "There's no way I get through this" then when you reach your goal you look back like "Holy sh*t, I really just did all that".

      Thanks for the advice though :)

  • srhardy on 11/07/2017 - 09:08
    +1

    Buy shares you know you can trade easy after Uni and get on with study BUT…

    Save 10-20% of the money for risky investment, like trading crypto currency, IPO of tech ect and be preaped to lose 90% of the money but the 10% (becuase none of us are smart, but ive learnt thoes that take silly risks are the ones that win big) will payout way way way more than you can ever hope to make any other way!

    1. you learn to trade risky assests and loose money to make money ~ this lesson is invaluable and it WILL make your wealthy over time
    2. the skills will set you apprart on job resumes, most dont have the skills or know how to take risks and lean new oppertunities. Welcome to the next CEO of name that bank 2050
    3. a slice of pizza bought with bitcoin sold for $0.000006xxx c's now that coin is worth US$3,500 and it will always go up, find me oppertunites like that please elsewhere
    4. mine a coin, trade coins or use trading bots like btconnect. Learn how smart contracts are going to change everything this century ~ this knowledge is priceless!

    and when your rich, learn to be charitable. Being nice with money is the final lesson you need to have a good life so you die loved with a smile on your dial and few regrets!

    • H32k on 11/07/2017 - 11:59

      Well a lot of the money I have made was from cryptos so I'm already steadily investing small amounts into it. Also I'm not really fond of the mindset you mentioned about being prepared to lose 90%, I'd rather invest 100% of it in a smart way and come out with more which I can do whatever with. That's how I started out and it seems to be working pretty well. However I do see your points and they are very solid for setting the path for the future.

      Thanks a lot for responding :)

  • djkelly69 on 11/07/2017 - 09:16

    I would probably just buy shares in some big companies (maybe 4 or 5) after doing a lot of research, then let it sit for 10 years or so.

    House is probably too illiquid - when you decide to travel or do something else in your 20s as most do, it is a lot easier to sell shares than a house.

  • iamw0man on 11/07/2017 - 09:47

    You could look into peer to peer lending or ETFs.

  • cypher67 on 11/07/2017 - 10:43
    +7

    Finish school, use the $25k to backpack around europe and/or the US (a gap year) then return to finish your uni studies. I didn't get the chance to travel when I was young and it is a huge regret. Life experiences at ~18 will help you discover who you really are, what you really want to do with your life and memories far exceeding $25k.

    • H32k on 11/07/2017 - 12:04

      Yeah, that seems to be the general advice, apart from saving it.

      Probably will travel to Europe as I've been to the US a few times now and really loved being there.

      Thanks for the input :)

    • Sensiekatie on 11/07/2017 - 14:37

      People who take gap years seem to cope better at uni and also more sure of their course. Those who do some volunteering in that year also learn some skills that will help as a character reference later on.

      My friend's daughter finished high school then did a Rotary exchange in Hungary… she was very focused on her return - but also had travelled while in Europe and learnt heaps about herself and the world.

      Highly recommend gap years. Also, degrees are not as valuable as they once were. So many have one, there is a lot of competition. Internships and volunteering are what make people stand out - but internships are controversial as they are often unpaid and they have no intention of hiring.

      So if you go down the university path - really look at what careers have good employment rates and what extracurricular activities help with job prospects.

      Agree paying fees upfront is a huge bonus.

  • dcep on 11/07/2017 - 10:50
    +2

    25k evo

    • H32k on 11/07/2017 - 12:01

      All day haha

    • Ritchma on 11/07/2017 - 23:27

      Not really the best first car tbh. It's fun and everything but way too much for novice driver.

  • nomoneynoproblems on 11/07/2017 - 10:56
    +2

    Dude go and travel after school. Spend the 10 15k and backpack around asia or something. You're well ahead of the ball game at your age. My biggest regret was not doing it sooner!

  • idonotknowwhy on 11/07/2017 - 11:22

    Get some chaincoin masternodes going, mining rigs ;)

    • H32k on 11/07/2017 - 12:03
      +1

      I've got an ether rig at the moment and I'm not really liking mining. Just all seems like its controlled by the big guns, I mine in a pool with about 180MHs and it really doesn't make that much for me.

      Thanks for the suggestion though

      • idonotknowwhy on 11/07/2017 - 12:09

        Sorry, those were jokes actually.

        On a more serious note, I think mining will dry up within the next 2 months:
        https://www.cryptocompare.com/mining/calculator/eth (this calculators takes difficulty increases into account).

        IMO, you'd do well to sell your GPUs while you can at these inflated prices.

        As for masternodes, I prefer them to mining, because you can easily liquidate (sell the collateral) and you don't have to maintain mining hardware.

        I set mine up at the start of April, so I'm obviously pretty happy:
        https://coinmarketcap.com/currencies/chaincoin/

        but it could go the other way very easily…

        • H32k on 11/07/2017 - 13:13

          Didn't buy at current rates so I'm in no rush to sell, after all they only went up a couple hundred bucks. Theres a function in the Ether miner to benchmark ahead of time and it looks like it will for sure get harder but definitely still be doable for the foreseeable future

  • HappyACS on 11/07/2017 - 11:34
    +4

    Travel , do some volunteer work.This will help broaden your outlook + gain some life skills & experience ( no offence here ) & then get stuck into making some serious kanga.

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