How do I start investing at 25, when I'm only earning less than $2500/mth? Should I take out $500 that I can bear to part with, to invest into high risk stocks for potential capital gain?

Hi, like many fresh grads, I'm stuck in a vicious loop where I don't have much capital to begin with; and can only grow my wealth in small ways like STI ETF or SSB... Even REITS are too expensive for me, because of the brokerage fees. I have $10k-$15k in total savings so far, and can possibly take out $500-$1k to invest. Should I put it into high risk stocks with the focus on growing my capital? (I work in a SME so salary is expected to remain low + no bonus.)

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Jun Hao Tay

19 Dec 2018

At this stage, investing into yourself (buying books on sales, communication etc) to boost your income may pay a much higher return over the long run. There are plenty of free materials online and at the library too.

Let's say you earn $500 x 12 = $6000 per year. Even if you earn 10% on that, thats $600 more per annum which will not move the needle over the long run.

Trying to go for "riskier investments" to generate higher returns often ends badly.

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Yong Kah Hwee

17 Dec 2018

Set aside emergency funds, then start accumulating money to invest! You can accumulate those $500-$1k to become $5k-$10k before you start investing!

However, I do not think that you should put your money into high rist stocks if you do not fully understand what you are putting your money in or the risks you are taking. Sure, high risk high returns, but also, high risk high losses!

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Bang Hong

17 Dec 2018

Sustainable Spender Specialist at Spender Bang

1) Emergency funds set aside

2) Purchase adequate insurance coverage

3) Excess monies, go for in...

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