Answers to “Concerns in the Finance World to a Minor” Part I

Previously, I had written an article concerning the issues minors felt are prevalent in the world today. In lieu of answers, I reviewed my questions and gathered answers. The article I previously wrote is located here.Here’s what I gathered:

How much money is enough? In order to determine how much money is enough, you need to outline your income, before and after taxes, and to figure out how your earnings should be divided. Finding the cost of living expenses and the cost of free spending, or money not spent on necessities can accurately determine how much you need to save, and the money you can grow through means of investment or savings. As helpful as it cutting back on expenses, outlining your monthly spending plan can really open your eyes up to your financial future.

How do we find sustainable sources of income? Other than working multiple jobs, there are very few options for sustainable income. Money takes time, and balancing multiple sources of income will be difficult. To make some cash here and there is different from finding sustainable sources of income. Obtaining a college degree can help with pay raise, although the return on investment of college is questioned by CEOs who dropped out of school to raise billion dollar companies. With any career path, there are always exceptions to success. In the end, there are no shortcuts, and coming straight from high school, college is the best option for all of us.

What is needed to sustain the quality of life I choose in the future? Defining your spending and investing plan is essential at such an early age in order to avoid any surprises during your working career. The general thesis is to take aggressive investing tactics at an early age by investing in individual stocks and mutual/index funds, with a minority stake in bonds. As you age and move towards retirement, a more passive and bearish approach should be taken in your portfolio by investing in inflation-proof bonds and funds managed by hedge funds.

What’s going on in Europe? What happened to Apple? What causes a stock to go up/down? Still so many questions to be answered, and in due time, they will be. Be sure to check back in soon for part two.

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