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Right now:

I'm having a regular income from my job (~1.800€/month) and some extra one (not regular) from fixing some stuff for friends' friends, people I know, etc. (let's say 200€/month).

My contract lasts 7 months (5 from now on) and I will not be working here after that.

I started working 2 months ago and had no savings untill then.

My monthly costs are very low as I live with my parents (about 150€/month) but would like to change this in the near future.

Future plans:

When I'm done with my current job, I'm planning on starting my own company with a friend, where we will need to spend, at first, about 8.000€ so I would like to make as much money as possible before that happens so the company can be alive for some months in case we can't make enough off it.

A bunch of small investments or a few big ones?

So, here is the main question: how should I invest my current job earnings (should I even risk them?) during the next 5 months?

So far, I've been buying some domains and setting up some 'lowcost' webpages with advertisement on them as I have hosting access and only need to spend money on buying domains (~8€/year). The problem here is that, even if I make money, I wouldn't be doing much from every investment, but a low amount from all of them.

And, over anything, I have to keep in mind that I'll need ~4.000€ for the company's first investment.

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2 Answers 2

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6

A savings account is your best bet.

You do not have the time frame to mitigate/absorb risks. The general guideline for investment is 5 years or more. As you state you are no where near close to that time frame.

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  • 1
    As an investment, I'd consider buying and re-selling stuff (for example), not just the stock market
    – sysfiend
    Dec 13, 2016 at 18:12
  • 5
    "Horse trading" or arbitrage scenarios do exist, but they are difficult to find. A local store offered a popular brand of shirts for $20 each. I bought one in my size but then discovered I could have resold them on ebay for $60 each. I went back, but they were gone. I've gone back several times over 8 months and no luck. This would have been a risk-less investment as I could have returned the shirts at any time for a full refund. I've also attempted these types of buying and selling and both gained and lost money. You should focus on launching your business if you have free time.
    – Pete B.
    Dec 13, 2016 at 18:21
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    This is the only correct answer - successfully investing in the equity market might net you 5% in half a year [given ~7% annual return being 'standard', and assuming things went well for you]. That 5% won't make or break your business launch, but losing 15% if things go crazy might force you to wait another 6 months to regroup as you earn it back. For a short time span, your risk tolerance should be very low.
    – Grade 'Eh' Bacon
    Dec 13, 2016 at 19:51
  • What is the interest rates for a savings count now a days?!
    – NuWin
    Dec 14, 2016 at 0:25
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Basically the right idea is:

1) invest in something you understand

2) be creative

3) use your own idea, don't copy what other people are doing

Your current plan seems pretty creative and you seem to understand it, so it fits the requirements.

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