Young man need's advice

Onawingandaprayer

jimjames wrote: »

It is possible and it's not true that £116 will earn diddly squat.

It is true that it won't happen for many years but share based investment is ideal for get rich slowly plans.

Agree. But he doesn't want to 'get rich slowly'. I was referring to his stated objective of doubling his money in one year. I strongly suspect £116 pm won't do that.

Onawingandaprayer

ViolaLass wrote: »

And where did that money come from? Job, savings, investing..?

State benefits?

castle96

"I have spare money because my rent is mostly paid as I'm on disability benefits"

What a wonderful system where someone on benefits has spare money for savings/investment. Obviously I don't know what your disability is (tell us?), but if serious, then am sorry for you. Real cases have a claim on State/out, funds.

What is your total 'income', all in ?

Your attitude just is not right mate, face it. Ask your friend how he managed it. Some feat in these times.

Don't want an ordinary job ? I hear that Richard Branson is recruiting for test pilots

colsten

This has got to be a wind up.

YoungGuy

gadgetmind wrote: »

Me too, and I'm now confident that I will retire without ever having had a job interview or written a CV.

However, I did get a good education and an engineering degree up front, and I did start my first company at age 21.

Dunno what your plan is, but based on my decades of investing experience, those seeking to get rich from speculative investments very rarely succeed.

Great... That's exactly the position I'd like to be in myself.

How did you get the money to start a business?

AlanP wrote: »

On benefits, or working or with help from family/friends? How has he managed that, was it by investing £116 per month in shares and paying cash for the flat 2 years later?

Be realistic, a life on benefits will not get you a house that you own.

You have realised that, which is great, now you need to work out how to get from where you are to where you want to be.

Putting the moral question of whether taxpayers want to fund them or not, shares are ONE of many possible routes, and as others have said it will take many, many years to work out.

Other options, like working, will give you a much better chance of getting there.

If you don't want to work in an office get an outdoor job.

If you don't want to work for someone else start your own business and be self employed.

Good advice. It's just figuring out what kind of business to start.

Onawingandaprayer wrote: »

Agree. But he doesn't want to 'get rich slowly'. I was referring to his stated objective of doubling his money in one year. I strongly suspect £116 pm won't do that.

I've been told differently by people who have actually bought shares.

Rob_192

YoungGuy

Assuming your post is a genuine enquiry and I'll give you the benifit of the doubt, here are my thoughts.

It admirable that you are thinking of breaking out of the benifits position which you find yourself in at present, but buying shares is not the answer.

What do you know about corporate fanance? Are you trained or experienced in reading company accounts/balance sheets etc? These are skills you can learn, but unless you do this first it will be gambling pure and simple but unlike gambling, buying and selling shares actually costs quite a lot of money. Firstly you have a broker's fee on every purchase and sale, but also you have 0.5% stamp duty to pay on every purchase. The sums of money you are talking about investing is miniscule (sorry, I know it's a lot of money to you, but when you're talking about investing these are very small sums), so a huge percentage of any investment is going to be lost on fees/tax.

I invest in shares, infact the vast majority of my pension provision is held in shares but I don't make huge returns, nor do I expect to. I reckon on bettering anything I can get on cash (ie saving accounts), but I am realistic enough to know that it's not going to suddenly make me a milionaire.

Your comments suggest you are very naive about how the stock market works. A lot of people think that shares ineviatably increase in value and that you simply buy low and sell high and bingo you're a millionaire. Doesn't work like that Im affraid and you will have winners and lossers and to have any chance whatsoever, you need to be well diversified which you simply can't do on the sort of money you're talking about.

Better to simply accept that to break out of the benefits trap which you probably find yourself stuck in, you're going to have to work bloody hard initially. I come from a fairly humble background and wouldn't profess to be particularly affluent now, but I have fought my way up from where I started and now have quite a reasonable standard of life - now in my 50s, in a good profession, earning a reasonable salery, mortgage paid off and a reasonable level of investments which should hopefully see me being able to retire early. This has been achieved by extreme hard work. When I was 18, I managed to get into a job where I could study through day release and correspondence and was able to become professionally qualified by my mid 20's, during this time, I not only squeezed in all my studies, but worked evenings and weekends to bring in extra money. This is the only way to break away from where you find yourself. You need to develope a work ethic and throw yourself into it, things won't land in your lap. I'm sorry if this sounds hard, but it's the truth and you need to become more realistic or you will simply dream your life away.

Best wishes

R

ViolaLass

YoungGuy wrote: »

Good advice. It's just figuring out what kind of business to start.

What skills do you have?


I've been told differently by people who have actually bought shares.

And have they made significant amounts of money from these shares or do they just hope to?

TheTracker

Wow, loads of ugly hate here, whether or not it's a troll.

gadgetmind

YoungGuy wrote: »

Great... That's exactly the position I'd like to be in myself.

How did you get the money to start a business?

I didn't. I slaved away for months in a grotty back-to-back terrace creating our first product, made the first batch pretty much entirely by hand using £200 for materials, and then used the proceeds from this to "boot strap" a business.

YoungGuy

Rob_192 wrote: »

YoungGuy

Assuming your post is a genuine enquiry and I'll give you the benifit of the doubt, here are my thoughts.

It admirable that you are thinking of breaking out of the benifits position which you find yourself in at present, but buying shares is not the answer.

What do you know about corporate fanance? Are you trained or experienced in reading company accounts/balance sheets etc? These are skills you can learn, but unless you do this first it will be gambling pure and simple but unlike gambling, buying and selling shares actually costs quite a lot of money. Firstly you have a broker's fee on every purchase and sale, but also you have 0.5% stamp duty to pay on every purchase. The sums of money you are talking about investing is miniscule (sorry, I know it's a lot of money to you, but when you're talking about investing these are very small sums), so a huge percentage of any investment is going to be lost on fees/tax.

I invest in shares, infact the vast majority of my pension provision is held in shares but I don't make huge returns, nor do I expect to. I reckon on bettering anything I can get on cash (ie saving accounts), but I am realistic enough to know that it's not going to suddenly make me a milionaire.

Your comments suggest you are very naive about how the stock market works. A lot of people think that shares ineviatably increase in value and that you simply buy low and sell high and bingo you're a millionaire. Doesn't work like that Im affraid and you will have winners and lossers and to have any chance whatsoever, you need to be well diversified which you simply can't do on the sort of money you're talking about.

Better to simply accept that to break out of the benefits trap which you probably find yourself stuck in, you're going to have to work bloody hard initially. I come from a fairly humble background and wouldn't profess to be particularly affluent now, but I have fought my way up from where I started and now have quite a reasonable standard of life - now in my 50s, in a good profession, earning a reasonable salery, mortgage paid off and a reasonable level of investments which should hopefully see me being able to retire early. This has been achieved by extreme hard work. When I was 18, I managed to get into a job where I could study through day release and correspondence and was able to become professionally qualified by my mid 20's, during this time, I not only squeezed in all my studies, but worked evenings and weekends to bring in extra money. This is the only way to break away from where you find yourself. You need to develope a work ethic and throw yourself into it, things won't land in your lap. I'm sorry if this sounds hard, but it's the truth and you need to become more realistic or you will simply dream your life away.

Best wishes

R

Thanks for the advice. The dream your life away bit did echo through my soul but I'm so late into starting work that I think I need to take some risks in order to get back to the level of progression my peers are at.

ViolaLass wrote: »

And have they made significant amounts of money from these shares or do they just hope to?

They said they made 20% gains in 6-12 months by investing in 1-3 good stocks and then used that profit and their original sum to reinvest.