How to start investing today with the money you spend right now
Many people enter the job market right out of school and jump straight into life feet first. Money comes in from a job, then goes straight to responsibilities, food, entertainment…all of life’s necessities and pleasures. This is often called being caught in a “rat race.” Every month it’s the same…money in, money out. Once you’re stuck in it, it’s very hard to get out. But not impossible.
Now, the money you earn at your job depends on your ability to perform a task or role and the amount of time you spend on that task or role. Essentially, it is exchanging time for money using a learned skill. But this can’t go on forever, right? What happens when you are too old to perform these same tasks required for a job?
Unfortunately, for some people it goes on for a long time. And when people who don’t invest in things that will generate income, whether they work or not, can no longer work, they have nothing to help them live as comfortably as they do today.
Until most people get a professional job that offers good benefits (including a 401k), money rarely goes into investments. Money is earned and spent as fast as it is earned, providing a person with the necessities and comforts of life at the time, and then some, but not allowing much for a prosperous future once labor income stops.
Everyone at some point in their life must face the reality that a job will not give them everything they want or need in life, especially life after retirement age. Investing is something that is best resolved early in life.
To understand how important investing is, you must first understand what investing is. An investment is a method of earning money with a single effort. Sometimes this effort can be intense and take some time, but you can generate income for many years without the same effort or time.
If you do a lot of research to buy a house to use as an investment, you only have to do that research once. Once you buy an investment, it will make money for you with very little effort. If you write a book and put it on a website to sell it, you only have to write a book once and it will make money for as long as it is active on the website or in a bookstore. If you research a company’s stock and find a perfect one, invest some money in them, the money starts working and making money without you having to do anything.
These are just simple investment examples that require a bit of effort. The point is that making money from investments is much easier than making money from a job if you know what you’re doing. A big difference between an investment and a job is how much time and effort someone has to put in to earn money. The great thing about investing in the stock market (whether it’s traditional buy/hold/sell trading, 401k investing, or options) is that you only have to learn how to do it once, keep repeating what you learn, and let every dollar you spend invest does all the rest of the work for you so you can enjoy life as it was intended.
Of course, there is a HUGE problem everyone faces before they can invest. Where do you get money to use to make money? When you live life in a “rat race”, eventually you get caught in an impossible circle from which it is very difficult to get out.
Do not worry!
You have money… you just don’t know it yet!
There are ways to make some changes in your life to begin building “capital” to invest, no matter what type of investment you’re looking to start. It will be slow at first, but it will definitely transform into something you won’t think possible.
One way to build investment capital fairly quickly is to open a “Round Up” savings account. This type of capital growth account actually helps you save and build money based on your everyday purchases. You attach your checking accounts or credit cards that you spend money on to your Round Up account, and for every purchase you make, this account rounds up to the nearest dollar and deposits that rounded-up cash into an investment platform that helps your savings grow faster. It’s not a lot of work, is it? This special investment account does the rest.
For example, if you spent $20.57 on something, it rounds up to $21.00. The round up, or $0.43, is put into your account, which is divided between multiple shares based on your account settings.
If you make 50 purchases from your checking account in a month with an average of $0.35 rounded up, you’ll save $17.50 in that month. That’s $210.00 in a year saved by simply rounding up these purchases.
The money invested in this rounding account rises and falls with the movement of the stock market. With a 5% profit in a year, you will earn $10.50 more. And some stocks your money is invested in earn dividends that are automatically reinvested in your account.
This doesn’t sound like much, but over time, it will continue to grow. This is an investment in itself and can grow quite quickly if you add to it constantly. If you have extra money you’d like to save for a month, you can also make deposits to apply to your account to grow your account even faster.
A Round Up Savings Account is simply a stepping stone to take you to a higher level of investing, which can be stock trading, options trading, a retirement investment account, real estate, or anything else you can get into. invest that money to earn more. money.
Once you build up some good investment capital in your Round Up account, you can withdraw it whenever you want and use it to buy assets (things that make you money, as opposed to liabilities) or invest in stocks to make even more money with it. weather.