Blow it on sex, drugs and alcohol. Waste the rest.

Nah, check out the banks and mutual funds for their offers. Check around amongst your friends to see if any of them require capital for their ideas. Economics-wise, I would very much like you to continue studying, because of supply-side benefits to the country, but it depends on your preferences, how much it will cost in terms of real cost and opportunity costs (will you have to quit your job?) and what you plan to do when you get out and the market for that job.

For example, dentists are often overlooked as a career opportunity. Vets, too. And everyone wants an accountant and a good tax lawyer. Hard part is the last two are very hard to master. Give me some numbers and I'll crunch it for you, no charge!

As a young man, you should actively seek out money now beecause you're still able to work hard. Savings and investing, though important, is even more important when you are older and less active. Having a large capital at that time is essential. So work hard while you still can.

Hope that helps!

This post has been edited by empyreal: Feb 13 2007, 08:31 AM

Where can I get that shirt?

If you wanna get a house, just check how much it costs you to buy or rent. To make it easy, we'll just ignore appreciation of the house, taxes and all that. Calculate the yearly rent total and divide this by the best interest rate you can get for your capital. If that number is larger than what you put down as capital, seriously do some research and consider. There's a lot of stuff I left out (like taxes, mortgages, blah blah blah), but it's a good initial indicator. Research required, though.

Sorry bout that. I meant that if you bought a home, you wouldn't need to pay for rent so you'd save on 4800rm. To get 4800rm a year, and thus not need to pay for rent through your salary, you'd need (according to colorola's 4% FD) 120,000 in the bank. Furthermore, the dividend you'll get will be taxed, so that means that the chap who's renting the house to you is actually making a nice profit off you. You might want to shop about for a home yourself, but you'd have to consider the mortgage if it's applicable and all that nonsense. Try going to this other post by jasondotcom over here to which dreamer has also contributed.

I apologise if what I write doesn't make much sense but I'm lacking sleep, sorry.

With respects to dreamer, his formulations would mean that if you can pay less to rent, you'd end up with no proprety at the end of the day. Might as well kick up some extra money to be able to afford to own the house rather than rent in perpetuity. That's where opp. cost comes in. You have to calc. the profits you get by either choosing between the home or another investment.

Oh, and consider selling the house and rent once you're retired. <runs into a trench to await flaming. "Flamethrower!">