Investing is one of the best ways to set yourself up for financial freedom and retirement. Every and anyone should be investing in something. Depending on your upbringing many of you don’t know where to start. Well I want to help you get started. But get started the right way. There are only 2 Rules to investing. Rule 1 Don’t lose money. Rule 2 Look back at Rule 1. So, we are going to talk about what do you invest in.
How do you know what to invest in? Don’t make the same mistake I made when I started. Don’t start investing randomly. That’s called speculative investing. Have a formula. Find what you like to do. Then find what you are talented in. Then find where you are spending your money. That’s the start to it all. You need to invest in something you know about. You don’t need to know everything about it but you need to have an idea of what’s going on.
Once you get your list together then you need to see what keeps repeating. What goes hand and hand with each other. Take that information and start figuring what company’s meet those characteristics. I would say write down as many businesses as possible. Once you get into the numbers a lot of them will not meet the criteria you need to make a smart investment.
Hopefully this gave you a good idea of what you should be investing in. It doesn’t have to be super complicated like how people make it seem. Keep it simple and invest in what you know. You may be surprised at how much you know about a business or industry. Take your time and do it right.
We all hear about stocks. For most of us we focus on the stock market crashes that happen every so often. What we don’t pay attention to is all the years that the stock market hasn’t crashed. So I say that to say don’t let fear stop you. I always wanted to get into stocks, but I was scared. I didn’t know much about it and I would look the other way. However, one day I logged on to Facebook and Dr. Boyce Watkins was doing a live. I didn’t catch everything just the tail end of it and he was saying if you want to learn about stocks download these 3 apps.
Acorns: I like Acorns because you don’t have to do anything. You link it to your debit card and as you make purchases it rounds up. Meaning if you spent $4.92 it will add $0.08 to your Acorns account. They don’t withdraw the money until they rounded up $5. So, they will withdraw in $5 increments. They will invest the money for you.
Stash: With stash you are buying into EFTs. The best way I can explain it is they are kind of like mutual funds. Where you buy a group of stocks at a time and you profit off the collective group. The main difference is that you can trade an EFT like a common stock. Mutual Funds you tend to have to hold on to them a little longer. So, you can find an EFT with some high-end stocks and sit back.
Robinhood: With this app it’s a little more complex. You are buying individual stocks. The risk is higher but so is the reward. You can lose it all or you can win. If you like to control exactly what stocks are in your portfolio and have time to really pay attention to them then this is for you. Me personally I like this app the most because I can find specific companies and invest.
At the time of me writing this it doesn’t cost anything to sign up for any of these apps. So really you don’t have an excuse. Lets get to it.