The relevant factor isn't income, it's assets. It's bad to have 20kUSD and no other investments, no matter what your income. On the other hand, in practice lower- or lower-middle class typically means having small or negative monetary assets. In that case, buying securities at all is probably a bad idea. First of all, there's a research, setup and monitoring overhead to any such investment, and that overhead isn't worth it if the amount you have to invest is too small. And second, the really high-return investments aren't securities at all, they're purchases of things that make your life better, save time, or help build marketable skills; and the less money you have the less likely it is that you've hit diminishing returns on those sorts of investments.
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?