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So what would you with $5000 a month?

Discussion in 'General Business' started by netmaster123, Apr 2, 2007.

  1. #1
    So lets say that you finally made your site famous, you are generating thousands and thousands of impressions a day and your site now make about $5,000 dollars a month, what would you do with that money?

    1. Buy more sites with traffic to make even more money?
    2. Save the money in your bank account?
    3. Invest in the same site that is making you $5,000 a month?
    4. Give money to your friends and family?
    5. Save money for a house or a new car
    6. Put it in a savings accounts so you can generate money with interests?
    7. Go on vacation??

    So post here what you would do with that money, I know that 5K is not a lot but this is just extra cash, but what would you do with it?
    SEMrush
     
    netmaster123, Apr 2, 2007 IP
    chagen likes this.
    SEMrush
  2. MrPoloShirt

    MrPoloShirt Peon

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    #2
    Let me guess, you're not from America? $5000 is not a lot of money. It's just enough to get by.
     
    MrPoloShirt, Apr 2, 2007 IP
  3. netmaster123

    netmaster123 Well-Known Member

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    #3

    Well I am actually fro New York! and $5000 a month is a lot of money anywhere in the world.

    Trust me there are a TON of americans that would love to get an extra $500 yes FIVE HUNDRED a month.
     
    netmaster123, Apr 2, 2007 IP
  4. druidelder

    druidelder Peon

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    #4
    Is that before or after taxes? Even before taxes, $5,000 is more than enough for most single people in the US. Of course, if that's all you do then you have to worry about health insurance (any real illness would eat away at that like nobody's business).

    I would do a little of each of those.
     
    druidelder, Apr 2, 2007 IP
  5. chagen

    chagen Peon

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    #5
    #5. Because I need a house and a car. :)
     
    chagen, Apr 2, 2007 IP
  6. convex7

    convex7 Peon

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    #6
    I would probably buy more sites to increase my money further...but i won't know untill i get there :p
     
    convex7, Apr 2, 2007 IP
  7. netmaster123

    netmaster123 Well-Known Member

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    #7
    Yes $5000 after taxes and expenses, what would you do with it??
     
    netmaster123, Apr 2, 2007 IP
  8. maonnie

    maonnie Member

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    #8
    I'd buy copious amounts of class-a powder and a new thai bride every couple of months Or I'd build a time machine, go back 86 years to post WWI Munich, then give Hitler a cuddle and a glass of warm milk.
     
    maonnie, Apr 2, 2007 IP
  9. netmaster123

    netmaster123 Well-Known Member

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    #9
    I wonder how much would a time machine cost, it would be a great investment.

    lame ....................
     
    netmaster123, Apr 2, 2007 IP
  10. exponent

    exponent Peon

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    #10
    Maybe if you snort a kilo of cocaine every day....


    As for having an extra $5000 a month, I would buy some houses to rent out near my college campus and invest heavily in the stock market through mutual funds.
     
    exponent, Apr 2, 2007 IP
  11. netpox

    netpox Active Member

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    #11
    $5000 is a lot for some people but nothing for others. I depends where you live, how much your bills are, and the life style you live.
     
    netpox, Apr 2, 2007 IP
  12. netmaster123

    netmaster123 Well-Known Member

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    #12
    The $x,xxx amount is NOT the point, this is a thread about investment ideas, it could be $5000 or it could be $50,000 the question is.

    What would you do with the extra money.
     
    netmaster123, Apr 2, 2007 IP
  13. druidelder

    druidelder Peon

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    #13
    Assuming that you have another job from which you get health insurance. I would break that money up and do several things. Some of my suggestions assume living in the US.

    Put a few hundred dollars each month into a ROTH IRA. The contributions are not deductible up front, but when you take the money out it is tax free. You have to have a AGI (adjusted gross income) less then $95,000:single - $150,000:married.

    Put $300-$500 per month into a savings. This will not earn as high a yield as other investments, but it can be accessed at any time without penalties.

    Invest in CDs (certificates of deposit). This may require some build up of capital over time as there is usually a minimum buy in.

    Invest some (again up to $500 a month) in stocks/mutual funds. Start with safe (which are often low yield) funds until you get used to investing.

    Reinvest in the site. This could be new hardware, better hosting, site redesign, etc.... This does not need to be every month, but even user-generated content sites (forums, etc...) need a revamp every so often.

    Buy new sites. Don't go out of control. Buy tested sites with traffic. Know how that traffic is generated. Some sellers may show you the income but neglect to talk about the expenses to generate that income. Don't buy more sites than you can handle.

    Spend some on yourself. This includes family and friends. If you really make $5,000 then don't spend more than $1,000 a month in this category. If you are saving for specific items, make part of that savings from this category. $1,000 a month is enough for some new toys, a vacation, and help friends and family.

    Buy property. Don't buy just because it is cheap. Buy if there looks to be potential for growth in the area. This can be risky because you will generally be signing up for a multi-year loan. Another option is to save $1,000 + in an account just for property and buy it outright when you have the funds. Property does not have to be a house. It could be agricultural acreage that is on the edge of being zoned commercial. If you do buy homes, you can let your family live there or buy them as rentals. Really think about this before you do it. The other investments will allow you stop paying at any time, but this is long haul. If you are not sure whether you will continue to see this income, don't do it.

    Just like monetizing a website, diversify. That is the best way to protect yourself.

    A note about friends and family: take them out once in a while, help them with small money issues, buy them better gifts on holidays. Do not just give them large sums of money (more than a few hundred). Do not get them overly lavish gifts or gift them all the time. Do not take them out all the time. One of two things will happen. Either they will get used to it and expect you to pay or they will feel like you are pushing your extra cash in their face. The more immediate the family (wife -> kids -> parents -> grandparents -> siblings -> cousins -> etc...) or closer the friend the more lax you can be. But not too lax.
     
    druidelder, Apr 2, 2007 IP
    ing and Dazed_and_confused like this.
  14. netmaster123

    netmaster123 Well-Known Member

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    #14
    Awesome post Druidelder!
     
    netmaster123, Apr 2, 2007 IP
  15. EGS

    EGS Notable Member

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    #15
    I'd probably bank $4000 per month and spend the rest on a place to live. :)

    Q
    Q
    Q
     
    EGS, Apr 2, 2007 IP
  16. Brian Kim

    Brian Kim Well-Known Member

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    #16
    like druidelder said, if you are young, you should think about investing into a Roth IRA.
     
    Brian Kim, Apr 2, 2007 IP
  17. jmweb

    jmweb Peon

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    #17
    Invest it in another site so you can make $10,000 a month ;)
     
    jmweb, Apr 2, 2007 IP
  18. ezguy

    ezguy Well-Known Member

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    #18
    I would go and party out with all the beautifull chicks out there :)
     
    ezguy, Apr 2, 2007 IP
  19. druidelder

    druidelder Peon

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    #19
    Thanks netmaster123. Here are some other ideas that could help out.

    Donate some to charity each month. Good charities can always use the extra funds and the donations are deductible. I would talk with an accountant and go over your finances. You have to donate enough for it to make a difference in your taxes, but not so much that you spend more (the goal is to drive you into a lower tax bracket). Of course, donating is its own reward and you could do it without any thought about it, but it's still nice to have the financial advice.

    Invest in art. There are a lot of artists out there (probably some local). You can support local arts and invest. Start out small (less than $500 per piece) pieces.

    One way to help family/friends without giving them a handout is to invest in their businesses (or help them start one). Obviously, $5,000 a month is not enough to help some one starting an airline, but you could get in on a coffee shop or something similar. If you go this route, be sure that you believe that they can succeed. This doesn't mean they will, but there is no point if you don't believe. Make it clear that you are buying a limited partnership in the business and that you expect returns if the business is successful. Define the terms and sign an agreement before giving any money away. Even with the agreement, don't expect to see returns for 3-5 years (if at all).

    Start collecting something (coins, stamps, baseball cards, Tiffany lamps, etc...). It should be something that interests you and, if possible, something that will see returns.

    Save to start that small business you've always dreamed of (your own wood shop, auto shop, whatever). Depending on what it is, build this on your own land rather than rent space. Even if it never opens as a shop, it could be something to dodder around in later in life (especially a wood or auto shop).
     
    druidelder, Apr 2, 2007 IP
  20. ablaye

    ablaye Well-Known Member

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    #20
    You must be kidding. How many americans do you know that earn more than $5000/month????
    It takes a college degree and a professional job to earn $5000/month unless you have a union job.
     
    ablaye, Apr 2, 2007 IP