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t3knomanser's Fustian Deposits


How Random Babbling Becomes Corporate Policy

run the fuck away

Mad science gone horribly, horribly wrong(or right).


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Minna and I transfered most of our savings into a variety of mutual funds. We've both got 401Ks through work that we contribute to, but we had put together a house fund that we've decided not to use (yet). So, while we bide our time and continue to save, we want to put our money to work.

Before doing investing, I spent a decent amount of time researching the subject. It's always been the sort of thing that I dreaded. I'm a nerd, business sense is not my strong suit. I find it unpleasant and distasteful and something best left for others.

But there are benefits. Someday, I could potentially save enough that I could live off the interest. That's nothing to sneeze at- I plugged some numbers into a spreadsheet- it's amazingly doable. It sounds impossible, but when you actually look at the numbers involved, it isn't hard. Someone on my income, saving aggressively, could be a millionaire in their thirties. Saving and investing can yield some high returns.

That was enough to sell me on the idea that, "Hey, maybe I should learn how this works!" And what I learned was music to my finaciophobe's ears.

Don't do anything. Check out a few index funds and mutual funds. Throw money in them. Leave it there. Don't touch it for a long time. If you don't micromanage your investments, you can earn lots of money. At a 10% return (an entirely possible average), with compound interest and regular contributions, you can make a lot of money. People who try and bounce money around and play individual stocks tend to have very variable returns. They might make a mint one day, but they'll lose it a few days later. If you invest in funds and play the averages, you'll never see any dramatic gains- but you won't see any crushing losses either.

That's it. That's the secret to financial independence. Make money. Save money. Put it away in index funds (your bank is a good place to start with looking to invest). Keep adding to that investment. Let time and compound interest do the work. The results are amazing.
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