I'm a broke 20 year old and I'm tired of living check to check, I have $300 to invest. What can I do?

As others have said, there is no point in investing money if you do not have enough emergency savings to rely on in a pinch.

The basic flowchart for anyone young and starting out on their finances goes like this:

  1. Budget yourself to spend less. Remove expensive habits you don't need and find cheaper ways to accomplish the things you do. Use a spreadsheet, or some software, I personally use Mint.com to track my spending, budgets, & goals. Once you have the budget in place, stick to it!
  2. Establish emergency savings (at least 3 months worth of expenses you could fall back on if you lost your income, though 6-9 months is of course better).
  3. Pay off high interest debts, e.g. credit cards.
  4. Pay off long term lower interest loans, e.g. student loans.

A little before you get to step 4 is where the budget you've built has become a solid habit and you begin having a little more pocket money available, plus the security of savings to fall back on. That's when you should really start to take a serious look at investing your money.

There is no quick fix, unless you land a new and higher paying job soon, but even that isn't a fix if you don't have the discipline to budget and save (many will fall into the trap of simply accruing bigger debts at a faster rate when they catch a break...). The good news, you're young and you already have a mindset to fix your financial situation. That's amazing! I wish I'd been more mindful of my situation at your age, instead of turning to it in my mid-30's.

Although, if your employer offers a contribution-matching 401k retirement plan it could be worth your while to begin investing there now. Seriously, the sooner the better if it's available to you. However, until those emergency savings are in place and any outstanding debts are paid down I would only contribute the minimum amount it takes to maximize the employer contribution.

/r/personalfinance Thread