What to do with disposable income - Page 2

put $1k into short term high interest account like ing/ubank for travelling... add to this monthly... in 1-2 years you can go on a big long holiday.... or blow $1k on whatever you want right now if you feel the need

put $4k away for long term savings / investment... add to this monthly... in 3-5 years you can buy shares or have a house deposit

with windfalls i like the 80/20 rule

80% long term wealth
20% FUN

Give some of it away to those who need it more. It is life changing to change a life and sometimes a small amount to someone who needs a whole lot, can change everything for them. One day you may be in a spot where you need that help, so when you are in a position to, give freely.
 

Did you miss a zero? $5000 does not sound like much, I am sorry.

 

If I can offer one piece of advice—do not fall in love.. There is no better way to squander that $5,000. 

 

I'm sure everyone is saying that you have plenty of time to figure things out, but I think that you should figure out what you want to do as soon as possible and try to get a head start rather than wallowing in the mire..

 

As far as the $5,000.. That's not much. Fold your money and put it in your pocket. 

travel. Don't know what you're doing with your life but definitely take advantage of the ability to travel when you're young and without encumbrance (family). It will be a lot more expensive to travel later on.

Invest it in something. 3k is not that much money but it can grow pretty fast if you're smart. The most important thing to remember is to NEVER touch the initial investment. If you HAVE TO remove some cash try to stick to the dividends/interests/returns, etc. That way the sum keeps growing at an (ideally) always accelerating pace. 

 

As for needing 20k to travel, that's complete and utter BULLSHIT. I know quite a few people who could live 1.5 years off that here in China. Many SE Asian nations are even cheaper so 3k get's you pretty far. 

All I see on here is invest in the stock market and go on vacation... while those are certainly fair uses of money, I think this thread is missing the best use for the amount you have given the lifestage you are in:

 

Learn something!

 

Frankly, the most valuable asset you have right now is time.  When you start working, time disappears.  As I'm typing this, it's 4:30 AM and I just  finished reviewing work materials and preparing for a meeting tomorrow.  Soon enough you'll be starting a family, having kids, etc., etc.  Time just evaporates and there's less and less time to dedicate to learning new things.

 

I know you're in undergrad, so perhaps a lot of academic topics are available to you as part of your tuition.  But what about things that aren't?  Maybe classes like:

 

a) guitar lessons

b) painting lessons

c) programming crash courses

d) martial arts lessons

e) singing lessons

f) horseback riding lessons

g) dancing lessons

h) bartending lessons

 

I can't tell you how many times I get jealous when I hang out with my friends, and one of them picks up a guitar and plays something awesome.  Or when I go to another friend's house and see the gorgeous paintings that she does herself.  

 

On the other hand, I have been taking martial arts lessons and its been a great reason to exercise as well as just being ready for those two or three bar brawls that will undoubtedly come some day.  Easily the best $250 I spend every month (sure beats a round of drinks at the club).

 

Anyway, I really think learning new things is the best investment.  You gain a new talent, you become a more interesting person, and perhaps you even discover something new about yourself.

I think that this is probably the best advice (next to mine) that you've gotten here. Knowledge is power. While it might sound incredibly corny, it's VERY true. When looking for something to learn, see if you can do something that will make your work life easier, or may even make you more eligible for a promotion. A course it IT related stuff would be great so that you don't have to call the tech guy for everything. A course in accounting would help you to get creative on your expense report etc. 

 

 - Maximator

No such thing as disposable income, only income to invest, whether in experience or stocks (to make more money). Travel Europe for 2 months, I was glad I did that 7 years ago, including my planed ticket, I used about $3000 Canadian dollars, and remember back then it was 1.5 CDN to 1 Euro. I slept in hostels from time to time, but more often I used couchsurfing.com and stay with a local person. It was great, because you're not stuck in a hostel with a bunch of N. Americans drinking booze and going clubbing. The locals know what are the good places, and they can take you around town to show you what's not in the guidebook. My host in Munich took me to a medieval festival, think Comic-con with a medieval theme. Everyone dressed up in their costume. They even have a big show at the end with a jousting tournament. It was all in German so I had no clue what the story was.

Or invest in dividend paying stocks. Don't you want a company that pays you 4-5% of your stock value annually? It's like free money (before tax). Of course you have to do your own research.

Or stock up on Apple stocks and wait for iPhone 5 to come out.

Stop thinking. The answer is: hookers and blow.

I guarantee you will have better stories to tell. Life is more fun with great stories.

SAve for a rainy day, invest for the future and spoil yourself

Purchase two club chairs from Poltrona Frau