Your summer job can fund a FANG fortune
That $10-per-hour summer job slinging eggs or saving lives at the beach could add up to more than pocket change. In fact, it could translate into a nest egg of tens of thousands of dollars if you sock some of the cash away in the stock market.
While the pay isn’t great for teens and college-age workers looking to make a few extra bucks — 87% of employers hiring this summer, Career-Builder says, plan to pay $10 or more an hour — it’s enough seed money to build a small fortune in a short period of time, an analysis by Rubicoin, an educational investment app, found.
Rubicoin calculated how much money a worker earning $10 an hour in a 25hour workweek for 13 weeks each summer the past four years would have if they invested half of their before-tax pay equally on Aug. 31 each year in four FANG stocks — Facebook, Amazon, Netflix and (Alphabet parent) Google. Half of the annual summer pay adds up to
$1,625 per summer. That $6,500 investment since 2014 would be worth $15,899 today, according to Rubicoin, citing closing prices on May 28. And for summer workers who favor big bets, that initial investment would have grown to
$22,639 if they funneled all the cash into just Netflix stock, or $19,554 if they bet it all on online retail giant Amazon.
“The numbers are pretty impressive, with people potentially quadrupling half their salaries,” says Emmet Savage, chief investor & co-founder at Rubicoin. So, next time you sneer at that low-paying summer job, think about what you could do with $20,000 in four years. Maybe buy a car or book a trip to Tahiti.