Only instead of putting your money in the bank, you’re putting it into an where your money will be invested in the markets and gives you a chance of earning returns.
It seems like the popular way to define a “good investor” is someone who magically knows when to buy and sell to make the greatest return. The truth is, almost no one (even those who do it for a living) does this well. Data shows that just 0.1% of money managers the markets over a 5-year period.
Instead, when you invest steadily, sometimes you’ll “buy low” and sometimes you’ll “buy high.” But overall, you may see market-like returns over time.
Half of your pay should cover the essentials: food, home, clothes, etc.
Seriously. The stuff that gives your life texture: shows, trips, dinner out with friends, whatever makes your life all yours.
This is money for “future you.” Her needs and wants should be covered too.
24-year-old college grad who is already the boss of her money.
Sonia’s a junior project coordinator making $45,000 a year. She lives with two roommates so she can keep her rent low, avoid credit card debt, and pay off her student loans.
Disclosure: For illustrative purposes only. This is a hypothetical client scenario and does not represent any Ellevest client or confer individually tailored investment advice.
Build three months of take-home pay, Goal Amount = $9,080
Contribute to company 401(k)