Author Topic: How to Invest $1200 for 18 Months  (Read 6515 times)

Outlier

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How to Invest $1200 for 18 Months
« on: August 28, 2014, 08:47:51 PM »
I started a project to roof my house with the help of my dad who is a contractor. He bought all the materials with his home depot pro card because he does that every day for his business. I was going to write him a check tomorrow to pay for the materials with my savings which doesn't put me in any kind of financial pinch.

He called me and said I could wait to pay him back because the purchase amount auto enrolled that cost into a promo 18 month no interest period. He said it's a common thing if you use your pro card for big purchases.

The $1200 would do nothing in my savings account for 18 months. Unless I had a way to make money off that money it's pointless for me to use that 18 month no interest period yet it exists.
 
So how could I make money off of $1200 in 18 months at a level where it's worth my time to do it? The only thing I can think of is trying to find items to flip from Good Will stores on Ebay. I've had luck with video game consoles and some small electronics stuff but it's hit or miss.

Even if it took some work but has a great success rate I'd do it to make that money work for me. If nobody has any ideas I'll just install my new roof write a check and forget about it.

franklin w. dixon

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Re: How to Invest $1200 for 18 Months
« Reply #1 on: August 28, 2014, 10:01:06 PM »
Blackjack.

Outlier

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Re: How to Invest $1200 for 18 Months
« Reply #2 on: August 28, 2014, 10:11:04 PM »

MikeBear

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Re: How to Invest $1200 for 18 Months
« Reply #3 on: August 28, 2014, 10:24:13 PM »
I say Ebay and Craigslist. I've flipped over $9,000 starting from zero in just the last 3 months. All summer they've had FREE listings, (you still pay a final value fee).

I go through the SOLD listings, and figure out what sold and for what price, then list mine for a higher starting price. Sometimes you get lucky and get it. If not, the listings roll over a total of 3 times, and you can always lower them. This has also just been selling stuff I'm finding around the house, in my sheds and garage so far... This is all stuff that would have eventually been thrown out, or sold at a garage sale for nothing (nobody pays anything at garage sales around here, everybody else wants it cheap so THEY can flip it!)

Some luck is involved, along with timing, and GOOD PHOTOS and descriptions!

robotclown

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Re: How to Invest $1200 for 18 Months
« Reply #4 on: August 28, 2014, 10:51:30 PM »
Since you're able to drop the $1200 today without any kind of financial strain, you don't really have to do anything besides invest it the same way you invest the rest of your money.  Presumably, your finances will be even better in 18 months, and it will be even less of a strain to write the check.

franklin w. dixon

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Re: How to Invest $1200 for 18 Months
« Reply #5 on: August 28, 2014, 11:09:20 PM »
Blackjack.

Please explain
All you have to do is bet the 1800 dollars when you're about to get really good cards. It's easy!

mjs111

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Re: How to Invest $1200 for 18 Months
« Reply #6 on: August 28, 2014, 11:26:11 PM »
If you're depending on that $1200 to be there 18 months from now just leave it in cash. 18 months is too short a time span to be investing in anything fancier than cash.

A problem to also keep in mind with smaller amounts like $1200 is commission costs.  Even if you were to invest the money at a discount brokerage where trading costs were, say $10, that would take a 1.7% bite out of your principal for a round trip. You'd have to earn about 2% on that money just to break even.


Mike

innkeeper77

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Re: How to Invest $1200 for 18 Months
« Reply #7 on: August 28, 2014, 11:29:03 PM »
How about a CD with your financial institution? That may do an 18 month term for you, getting you slightly better interest than in a savings account, with no risk.

Dicey

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Re: How to Invest $1200 for 18 Months
« Reply #8 on: August 28, 2014, 11:29:53 PM »
Blackjack.

Please explain
All you have to do is bet the 1800 dollars when you're about to get really good cards. It's easy!

Oh shit, FWD, I was thinking the very same thing, except I'm partial to Craps. When you were asked to explain, I damn near died laughing. You guys are funny!

Seriously, OP, $1200 bucks is fuhgeddaboudit money. Write the check and get on with your roof and your life. BTW, next time you're tempted by one of those offers, make sure you read all the fine print. There are very often gotchas in those offers or they wouldn't make them. FWIW, if I make a purchase of that size, I put it on a cash back/mileage/hotel card.

RunHappy

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Re: How to Invest $1200 for 18 Months
« Reply #9 on: August 29, 2014, 06:52:10 AM »
IMO 18 months isn't a long time to do anything more than a CD with that money.  I would just pay the balance now.  You have the money and it would be one less bill to think about.

FrugalToque

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Re: How to Invest $1200 for 18 Months
« Reply #10 on: August 29, 2014, 07:15:51 AM »
Oh, it's not completely useless.
You could put that money against a mortgage or some other debt.
You could invest it now in your retirement fund and then not-invest 18 months from now, assuming you have a regular schedule for investing.
But you should be warned:  if you're late making that payment, 18 months from now, you get dinged with ALL 18 MONTHS OF INTEREST.

Brrrrrrrrrrr.

Outlier

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Re: How to Invest $1200 for 18 Months
« Reply #11 on: August 29, 2014, 07:33:12 AM »
I say Ebay and Craigslist. I've flipped over $9,000 starting from zero in just the last 3 months. All summer they've had FREE listings, (you still pay a final value fee).

I go through the SOLD listings, and figure out what sold and for what price, then list mine for a higher starting price. Sometimes you get lucky and get it. If not, the listings roll over a total of 3 times, and you can always lower them. This has also just been selling stuff I'm finding around the house, in my sheds and garage so far... This is all stuff that would have eventually been thrown out, or sold at a garage sale for nothing (nobody pays anything at garage sales around here, everybody else wants it cheap so THEY can flip it!)

Some luck is involved, along with timing, and GOOD PHOTOS and descriptions!

This was the only option I could think of that would work. There's a lot of time involved but I could hit some pawn shops and Good Will stores to find items that sell easily and ship cheaply on Ebay. With 18 months I might make a few hundred off that money. On the other hand I might get burned and have some junk sitting around that wont sell and have to pay myself back that money.

Dicey

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Re: How to Invest $1200 for 18 Months
« Reply #12 on: August 29, 2014, 07:51:59 AM »
I say Ebay and Craigslist. I've flipped over $9,000 starting from zero in just the last 3 months. All summer they've had FREE listings, (you still pay a final value fee).

I go through the SOLD listings, and figure out what sold and for what price, then list mine for a higher starting price. Sometimes you get lucky and get it. If not, the listings roll over a total of 3 times, and you can always lower them. This has also just been selling stuff I'm finding around the house, in my sheds and garage so far... This is all stuff that would have eventually been thrown out, or sold at a garage sale for nothing (nobody pays anything at garage sales around here, everybody else wants it cheap so THEY can flip it!)

Some luck is involved, along with timing, and GOOD PHOTOS and descriptions!

This was the only option I could think of that would work. There's a lot of time involved but I could hit some pawn shops and Good Will stores to find items that sell easily and ship cheaply on Ebay. With 18 months I might make a few hundred off that money. On the other hand I might get burned and have some junk sitting around that wont sell and have to pay myself back that money.

On one hand, this is just gambling without the bright lights and watered-down drinks + a lot of work. On the other hand, if this intrigues you, you can do it any way with your normal operating funds. Call it a side hustle. Just be sure to start with money you can afford to lose.

frugalnacho

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Re: How to Invest $1200 for 18 Months
« Reply #13 on: August 29, 2014, 08:04:50 AM »
Who pays commission fees?  Put that shit into your vanguard index funds.  Then add to it over the next 18 months.  If the market goes down you should still have at least 1800 when the bill comes due.  If it goes up then pay your bill and keep the rest in vanguard and keep adding to it.

skunkfunk

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Re: How to Invest $1200 for 18 Months
« Reply #14 on: August 29, 2014, 08:49:32 AM »
Pay your dad, let him keep it for 18 months if he wants it.

Outlier

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Re: How to Invest $1200 for 18 Months
« Reply #15 on: August 29, 2014, 07:47:06 PM »
Pay your dad, let him keep it for 18 months if he wants it.

I asked him if he wanted to do that and he said he'd just throw it in his safe and if I got in a pinch and needed to borrow from it and pay it back in the next 18 months I could.