My current situation is that i’m working a low paying job and can save very little…

Posted By Robert On Saturday, July 25th, 2015 With 0 Comments

My current situation is that i’m working a low paying job doing only 30 hours a week. At the moment I am living at home so can invest a couple of hundred each month (200-400). I got so sick of job hunting that I have just settled for what I have for now. Longer term I plan to find a better, higher paying job.

I currently have minimal savings. A couple of hundred in cash, 100 ounces silver, 2 sovereigns and 2x 10th ounce gold coins. I would have more saved but my pride didn’t let me sign on straight away when unemployed so I ended up spending everything and my first 3 paydays have been taxed at the basic rate because the accounting department is a joke.

So basically, I would like to start, if this is even possible, buying some dividend paying shares in safer companies (because the dollar is going down IMO). Is there any point me looking for shares like this with such a small budget (say 500 next month and 300 per month from then on) or should I just get more gold (likely to be sovereigns) and wait until that goes up?

I’m guessing you’re in a time rich/money poor situation, the best approach imo is to maximize your limited capital against your best asset, which is your spare time. On the positive side you have an income with spare time to research, and also extra working hours in the week. A small business will always be far more lucrative than trying to build a portfolio from pennies, so if you can think of a service in demand try to fill it. It may involve some research, a van or a JCB or whatever. Be very careful about going into debt, work in your spare time at first but stay inside the law…

Put your silver and gold away in a safe spot…and forget about it. L eave 25% of your capital in cash – you have no idea how long your situation will persist and you may need liquidity even for basic sustenance.

Investing in other people’s business (eg shares) is fine if you are money rich/time poor, the return on capital is lower but that’s fine because you have plenty of it.