Also do you have any thoughts to share regarding the ethical ramifications of investing? I'm just concerned that I'd be making profits at the expense of others,
A very basic finance book, which is also rather oldish is George Claysons: Richest Man in Babylon. It is a series of fables set in the old city of Babylon, teaching people why to save + invest in a broad sense.
To cover the ethics of investing: Imagine if you sit an hour at home doing nothing. Compare that to doing something that improves your own live like repairing something in the house, or that improves the life of someone else, like a client in your job. In the second case you did something that made a part of humanity slightly better off. If you get payed for that it is an exchange of your time and abilities against the resources of someone else, who profits from using you, and is probably as happy about the exchange as you are. Now with the money you have the choice of either consuming it - which allows others to profit by serving you, or you can 'invest' it. Which means delaying your own consumption, and instead giving someone else who is in need of capital the possibility to buy an item that helps her to produce more efficiently. As a fee for your capital you either get some fixed sum, or a share of the profits, so in the end both you and the other person profit from that. That is of course a super simplified explanation of a more complicated thing. There are companies you might not want to invest in and others that are really awesome.
Hey everyone,
I'd like too see if I can utilize the rational powers of Less Wrong
Currently I work full time. Am well paid for my age. Have approximately $20,000 AU in savings.
My spouse is in uni. Will finish this year and begin working next year. But currently I am supporting our household.
I have recently concluded that $20k is too much to be sitting idle, and the rational thing to do would be to find a way of putting those savings to work in some fashion. But how?
What would be the best way of utilizing these finances in terms of self-development and/or monetary return?
A few things to consider:
a) My skillset at the moment is limited, but I am eager to learn anything.
b) I only desire money in that it enables me to carry out many plans that would be difficult otherwise.
c) Relationships are far more important to me than money, however money is still pretty high up there.
I come to Less Wrong because it is the only community whose advice I would trust. The rest of the internet as many scammers, most friends and family feel threatened by the idea of investment/new things etc. Also they just aren't as rational as Less Wrong.
I would be so appreciative of any advice given.
Also anyone in the same boat?