Do you actively invest your savings?
For those who are bootstrapping, are you actively investing your savings in non-cash investments like stocks, bonds, etc.?
For those who are bootstrapping, are you actively investing your savings in non-cash investments like stocks, bonds, etc.?
Big stack of cash in the bank just in case none of the side projects works out lol.
Honestly, I feel that I am taking so much risks in my work that any savings should act like safety net / very safe investments only.
Most in Vanguard s&p500 and all world etfs, some in p2p platforms and a very small part in start-up and crypto
Put my saved money in a Money Market! It makes more interest but it still very safe and you can get access to it quickly if need be!
Nothing "active" since I'd rather keep my mental energy available for product stuff, but I certainly think it's worth learning enough to decide on a portfolio composition that suits you and then just let it sit in something (e.g. a mix of low cost index funds and whatever else).
Although I don't necessarily love the book in a general sense, Tony Robbins' Money does a pretty good job of convincing you why you shouldn't try to be an amateur active investor, and he ends by proposing a fairly solid portoflio composition. It's also a fun read with lots of good interviews. (The bad part is that it's basically all trying to sell you on using his investment services, which may or may not be a good thing--I've never tried them.)
Although that's only true now that I'm established. When I was starting out, I followed the mantra that cash is king, and I basically kept whatever small amounts of money I had in places where I could quickly get to it and use it.
But... I had a pretty good safety net in terms of knowing lots of people who would quickly hire me for freelance gigs, so I didn't feel that significant savings were essential for my financial safety at the time.
While I had my business, I actively saved up. I put almost 30℅-50℅ of my salary into a bank account which I do not touch for any regular expenses.
The key was to put the saving money into the bank at the start of the month and budget for the month with the remaining money. This worked out really well for me and I am glad I did it.
I put some of my savings into mutual funds, stocks and the rest stays in the bank. I've been out of active work for the past five months and this savings pot has helped me alot.
Tip:Put your money in mutual funds rather than doing stocks by yourself.
Just yesterday, I randomly started wondering whether I should buy some bitcoin 😂.
Great question, though! Personally, I don't have any investments at the moment, but I'm interested how other people manage their savings.
I put some small money towards crypto via coinbundle, mutual funds and stocks.
The crypto marker is like a slot/roulette machine. The returns haven't been great.
Stocks are good but takes up one's personal time.
I personally found mutual fund to be the best. Decent and most importantly steady returns. Not the highest returning vehicle but certainly steady.
If you buy some, just don't be afraid of it when it dips. I bought at $300 and at $8000. Have lost some and gained some.
If you've got $500 that wouldn't make you stress to lose, put in some Bitcoin, leave it alone for 5+ years. Bitcoin is not like a stock, but it is valuable in its own way