This is how I have been doing since 2008 and how I highly recommend you to do.
- Open a Stock Account with your bank and every month save 20%/30%/40%/50% of your net income and invest it in a low commission S&P500 ETF by Vanguard (like “VOO” or “VIG”: google them).
- Google: “dollar cost average” + “compound interest” in order to understand the benefits of this double-pronged strategy (in short: you will beat 90% of all the professional Fund Managers out there).
- Set up (both mentally and practically) a bare minimum that you must invest every month and deposit it into your stock account at the beginning of each month so you will not be able to spend it to buy useless stuff.
- This will do marvel to your sleep and to your income as long as you will be consistent, patient and NOT touch your investments for a decade or so.
- As soon as your career will progress and you will earn more, this strategy will also prevent you to fall into the “increased lifestyle” trap (where you spend more money on useless items just to show your status to your peers or because you become lazy).