Learn to Invest Now

What we hear about investing

Never invest in a business you cannot understand.- Warren Buffett

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price

Time is the friend of the wonderful business, the enemy of the mediocre

When you buy a stock, plan to hold it forever

If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes

If the job has been correctly done when a common stock is purchased, the time to sell is almost never

The stock market is designed to transfer money from the active to the patient

Opportunities come infrequently. When it rains gold, put out the buck, not the thimble

Remember that the stock market is a manic depressive

Investing isn’t rocket science, but there is no “Easy Button”

– IMPORTANT 

Investing in the stock market is not a path to get rich quickly.

If anything, I believe the stock market is best meant to moderately grow our existing capital over long periods of time.

Investing is not meant to be exciting, and dividend growth investing in particular is a conservative strategy.
 
Don’t give up keep on learning and pursue your dreams, preserve yourself, learn yourself, be unbreakable

Open a Brokerage

A brokerage, or stockbroker, is a company that’s licensed to buy and sell securities like stocks, bonds, and funds. Individuals can also be licensed stockbrokers. Most brokerages offer both retirement accounts and brokerage accounts, which are also referred to as taxable accounts.

You’ll owe taxes on any income that comes from investments in a taxable brokerage account. Retirement accounts, like traditional and Roth IRAs, are subject to different sets of rules.

While retirement accounts offer considerable benefits, many investors use brokerage accounts to buy and sell securities. Like a bank account, you can transfer money into and out of a brokerage account. You own the money and securities in your account, and you can sell your investments at any time. The brokerage acts as the middleman between you and the investments that you want to buy.

If you want to make your own investment decisions, setting up an account with an online broker is a great low-cost option.

How to Choose an Online Broker
Not all online brokers are alike. Here are the questions you should consider when deciding where to open an account:

  • Does the brokerage offer the investments I want?
  • Will I be charged commissions?
  • What are the account fees?
  • Is there an account minimum?
  • Does the brokerage offer the data or other resources I need?
  • Will I be able to get customer support if I need it?

While retirement accounts offer considerable benefits, many investors use brokerage accounts to buy and sell securities. Like a bank account, you can transfer money into and out of a brokerage account. You own the money and securities in your account, and you can sell your investments at any time. The brokerage acts as the middleman between you and the investments that you want to buy.

If you want to make your own investment decisions, setting up an account with an online broker is a great low-cost option.

How to Choose an Online Broker
Not all online brokers are alike. Here are the questions you should consider when deciding where to open an account:

  • Does the brokerage offer the investments I want?
  • Will I be charged commissions?
  • What are the account fees?
  • Is there an account minimum?
  • Does the brokerage offer the data or other resources I need?
  • Will I be able to get customer support if I need it?

You Decide on the Money Action

Before you start investing, you should consider how much personal involvement you’d like to have in managing your portfolio. Luckily, there is an approach for every investor, whether you want to be more directly involved or have someone else do most of the legwork for you.

Creating a successful portfolio helps you understand where your money is coming from and what you’re doing with it. Instead of wildly investing $1000 a month and then going into credit card debt to cover everyday costs, first set-up a tangible monthly budget. 

Certain investment funds require minimum deposits, and there can be fees associated with stock transactions. So it’s a good idea to consider ahead of time how much money you can afford to invest, and how often you’ll be doing so.

 

100 days in

Once you have your budget setup and you’ve eliminated any expensive consumer debt, you’re ready to start considering investing. But before you actually put money into the market, do you have a fully-funded Emergency Fund? If there’s an emergency, you don’t want to have all your disposable cash in the market.  

Investing is a math game. If want to invest $1000, then your best bet is to break it up into little pieces.

For example:

  • If you invest $71 dollars a week, then you’ll reach $1000 in 100 days. There are 14.2 weeks in 100 days.  
  • If you invest $10 a day, you’ll have $1000 in your brokerage account in 100 days.

More often than not, brokerages will charge a percentage or 1-time fee to make trades and sell stock. For that reason, you’re going to want to limit the frequency at which you buy and sell. However, brokerages rarely charge you money to upload money into your account. It’s only when you buy actual stocks do they charge you!

If you know that you’re easily tempted by a fuller bank account, schedule a deposit of $71 every Thursday into your brokerage account. This can be an automatic deposit that you can schedule on whatever brokerage app or website you use. This way, you don’t have access to this money over the weekend. 

One of the hardest thing to do

Try to avoid checking your portfolio every day (or even weekly or monthly), since it’s very common for the market to fluctuate each day. Instead, make a goal to check in only a few times a year and to only make adjustments once a year to account for any changes necessary to balance your overall portfolio.

It’s worth noting that Ramit Sethi, author of the New York Times bestseller “I Will Teach You To Be Rich,” says that an average 8% return on investment is ideal for most people. You don’t need to make big, risky investments to build long-term wealth, he says, and “average” performance will provide the most stable path to financial growth. He prefers to invest in index funds and target date funds.

No One can Penetrate Your Mindset

Just start investing — don’t let the process scare you. Once you have a solid emergency fund built up and no high-cost debt to take care of, open an account with a robo-advisor or invest in some low-cost index funds, then put a bit of money into your brokerage account from every paycheck. In the long run, that’s one of the best (and easiest) ways to make your money grow.

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