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I have some money of my own that I have saved for years. At the moment I am 23, pursuing my masters. I have a little bit over 10k dollars. What would be a clever way invest my money. I am not looking for a scheme which will make me rich instantly. I don't even think you can do much with 10k dollars.

Should I invest that money on my studies, on my personal development, or should I look for a side business?

I am a Masters student in Computer Science, if that makes any sense in the context of my question.

Also, I think that I have very little understanding of investment or doing business. Any book suggestion is welcomed.

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    Are you willing to put your $10,000 at risk, with potential loss? When might you need the funds in the future? – Chris W. Rea Nov 13 '13 at 1:39
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    Country? Do you have income this year? When will you finish the schooling and start work? – JoeTaxpayer Nov 13 '13 at 3:19
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    Similar question to JoeTaxpayers, but more direct... what are your current finances like? If you're borrowing money at 7% to go to school while you invest your $10,000... you're better off graduating with no debt and no $10,000. – THEAO Nov 13 '13 at 10:51
  • @ChrisW.Rea I am not thinking much about the risk at the moment, since I consider myself to be young, and that gives me buffer time to recover any loss, if any takes place... As well I am not in urgent need of that money at the moment. Hopefully, if no disease or bad luck hits me or someone around me in the future it should be ok – Kristof Tak Nov 13 '13 at 11:00
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    @WolfgangKuehne - the first thing you should think about before investing any money is the risks involved in investing your money. You should have a risk management plan no matter how young or old you are. The RMP should outline all the potential risks in a certain investment and how you will manage those risks. If you do not take the risks into consideration you should not be investing at all, unless you don't mind losing your full $10,000. – Victor Nov 13 '13 at 20:04
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An investment in knowledge always pays the best interest, as Ben Franklin said.

However, this is not a question I can answer for you, as it depends on the opportunities that are specifically available to you as an individual. Sometimes opportunities will knock on your door and you can take advantage, other times you have to create that door to allow opportunities to knock.

Maybe you have a friend that is opening a side business, maybe there is a class you can get into at a trivial cost. What I suggest is to start investing just to get into the habit of it, not so much for the returns. Before you do, however, any financial advisor will advise you to begin with a emergency fund, worth about 3-6 months of your expenses for that time. I wanted to hit the ground running and start investing in stocks, but first things first I guess.

"Millionaire Next Door" will help you get into a saving mindset, "I will teach you to be rich" is ok, plenty of other books. My advice is keep doing what you're doing, learn to start saving, and once you have obtained an emergency fund of the amount of your choosing, start looking to invest in Index Funds or ETFs through any platform that has LOW FEES!!

I use Betterment, but Vanguard is good too, as they allow you to get your feet wet and it's passive. Hope this helps.

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