How to make $3000 grow, which method should I use?

ok, I’m 18 and I have saved $ 3 500 from work. Plus I have about $ 300 in an account with a card that I actually use. I don’t need the $ 3000 now and probably won’t for like 4 or 5 years. So, what is the best option to do with that money rather than leave it in my account?

trust fund?
any other ideas??? please, it will help if you elaborate too, thanks

5 Replies to “How to make $3000 grow, which method should I use?”

  1. you can invest in stock market by opening a demat account in companies like India is one of the best brokerage firm.For more details contact me on the mobile number given below or email me at [email protected]

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  2. If you want to be conservative with your money and truly don’t plan to use it for 4-5 years, I would invest it in a CD with an annual or longer maturity or else a high-yield money market.. Your local bank should have an instrument like that, and the investment advisor there can help you set it up.

    If you want to take more risk with your money, then you can consider investing in the stock market. The stock market generally sells two kinds of stocks: growth stocks, which do not pay a dividend, and dividend stocks, which do. A dividend is money you are paid at regular intervals for owning the stock.

    The more conservative strategy is to select a stock and then just let your shares in it ride, and use dividend reinvestment. That way, when your stock pays a dividend, the brokerage company or bank will automatically purchase more of the same stock, once you have enough money in your account to buy more shares.

    If you decide against automatic dividend reinveatment and want to choose for yourself which stocks to purchase with your dividend earnings, then It’s best to buy shares in blocks of 100, so you’re looking at a stock whose shares cost no more than $ 30.00 apiece.

    To be a more adventurous stock purchaser, you could buy a stock and trade it according to its dividend price. Dividends rise and fall, so the dividend yield will sometimes fall below what is acceptable for you. For instance, you wouldn’t want to buy a stock whose shares cost $ 122 each, if it gives only a $ 0.10 quarterly yield.

    I would advise against being adventurous because you are young and might not be very well educated about how to plan a stock-buying strategy. Until you’ve researched the market a lot, I suggest either buy and hold with dividend reinvestment or buy and hold with dividend investing on manual override. Since you only have $ 3000, I’d buy shares of dividend-paying shares in only one company. You don’t have enough money right now to diversify, unless you decide to buy 100 shares in a mutual fund.

    With dividends, quarterly payments are better than yearly or semi-annually, and monthly dividends are better than quarterly, but they’ll pay less per distribution.

    Anyway, I hope I haven’t given you more choices than you want. My first suggestion, about the CD, is the easiest to manage. You just buy the CD, and you don’t have to think about it again. But it will not produce as much dividend income as stocks because it is a safer investment. On the other hand, you won’t lose your shirt, like you could in the stock market if you only buy growth stocks.

    Best of luck, and kudoes to you for starting this young.

  3. Before you invest you should think twice r thrice becoz this involves hard earned money

    I dont think leaving money in the account is not best option becoz bank gives you the lowest returns less risk

    Mutual Fund are risky …

    There are so many ways to invest where you get good returns, and also tax benefit

    Before giving you any suggestion i need to know your requirement based on that we may help you

    If you require any Help Can contact email: [email protected]

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