Do you have an emergency fund? No? make that your investment!
Do you have 3-6 times your monthly expenses set aside? No? make that your investment!
Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth
Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.
IMHO £5k is too little to be worth investing in anything if you don't have the three things you mentioned in order.
Personally if I came into £5k and didn't need to clear any debts or top up my safety net I would treat myself to some new clothes, a new computer, a holiday or some other good experience before I think about investing it. Then again I have learnt the hard way that a lot of the time investing is just setting money on fire. These days I rather enjoy money when I get a little bit extra :)
Edit: I didn't account the increase of the value in the stock, saw one that doubled in value, so if someone had invested in it when it opened they would of gotten back twice what they invested, still not necessarily 10x but it's not bad for a safe low risk investment.
So for S&P 500 ETFs I'm seeing for example:
* Boost Issuer Public Limited Company BOOST S&P 500 3X LEVERAGE DAILY * Boost Issuer Public Limited Company BOOST S&P 500 3X LEVERAGE DAILY 30/11/62 * Boost Issuer Public Limited Company BOOST S&P 500 3X SHORT DAILY * HSBC Etfs PLC HSBC S&P 500 UCITS ETF * HSBC Etfs PLC HSBC S&P 500 UCITS ETF $
How would I know about telling the difference between them and which one I should choose?
Similarly for MSCI World:
* Amundi Index Solutions AMUNDI MSCI WORLD ENERGY * HSBC Etfs PLC HSBC MSCI WORLD UCITS ETF * Ishares Iii PLC ISHRS CORE MSCI WORLD ETF USD (ACC)
I'm considering picking them based on their Morningstar ratings and past performance over 5 years, would that make sense?
Want to take some time off and do something different? With a lot of debt hanging over your head this may not be possible. Everything paid off? No big deal.
You have to look at risk as well as rewards. You also have to look at flexibility and opportunity.
A mortgage is leverage. Exclude that from typicle debt.
Bad debt is anything nontaxdeductible and over riskfree rate. So consumer debt
Aren't 2 and 3 the same thing?
How is money set aside an investment?
Thank you!
2 is more of a "oh shit the washing machine/car/stove broke" fund. stuff that costs more than i'm willing to cut from my income on a moments notice.
3 is leverage and runway.
employer fucked up your salary payment? frustrating but you'll live.
negotiating a raise? no need to bluff, bring in your written notice and sign it in front of them. important: ask them for a pen. the look on their faces is priceless and 3 month should be enough to get a new job.
Want to go the extra mile? get a second bank account with another bank and split the money. remove the bank as a single point of failure.