Over the past couple months, the markets have been a little choppy. It is times like these that make people scared to invest. However, if you don’t invest, you aren’t able to grow. If you don’t grow, you are stagnant. Over the past few decades, the stock market has been on a tremendous bull market run. Even though the market has historically provided great returns, many people are still scared of risking their hard earned money. In this article, I’m going to show you the top three things to invest in and why.
1. Invest in yourself
This is an investment that you can never lose out on. When you are constantly investing in yourself, you just keep improving yourself and your life. When you invest in healthy food, your body rewards you for it. When you invest in the right training, your business rewards you for it. Investing in yourself is the one thing that you can never lose money on for there is nothing to lose.
2. Invest in your business
If you are very knowledgeable in a certain field and run a business in it, it’s a smart decision to reinvest in that business especially if the business is scalable. This business can be a marketing agency, an e-commerce store, a website, or really anything that has to do with online. Because you understand what you are investing in, you’ll have a better shot at having a return on your investment. In other words, it will be less of a risk.
3. Invest in the stock market
Like I said earlier, the stock market has provided great returns over the past few decades. Investing in something is better than investing in nothing. If you just let a large amount of money sit, inflation will start to eat it up. Focus on investing in good growth stock mutual funds that have had great returns in the past. The sooner you invest, the better off you’ll be in the future.
Unfortunately, in the United States of America, people are just really bad with money. They finance cars and houses that they can’t afford and get themselves into a tremendous amount of debt. Student loan debt is also one of the biggest burdens within America. It is causing many families to delay starting a family. All in all, we weren’t brought up learning about money. Very few individuals we’re. The good news is that personal finance is very simple and it’s never too late to start. In this article, I’m going to be breaking down my top money tips that you can implement to have financial success.
1. Have a budget
This is by far the most important step if your goal is financial freedom. If you don’t focus enough on your money and where it is going, you’ll never reach financial independence. At the beginning of every month, make a written budget for that specific month. The budget should know where every dollar of your income is going whether that be towards entertainment, savings, rent, or food. In the end, money get’s bored and you have to pay constant attention to your accounts and financial goals in order to keep it.
2. Save to Invest
When we are growing up, a lot of us are told to save our money. There is only one problem with this: inflation. When you save a large sum of money over a long period of time, that amount of money get’s weaker due to inflation. Instead, you should be saving to invest in other assets that are going to provide cash flow. This can be your own business, the stock market, or even real estate depending on how much capital you have. In the end, save to invest in other things that are going to give you more money.
In simple terms, avoid all debt unless it is debt that’s going to make you rich. Debt can really hurt you on your journey toward financial freedom.
Most Americans have a hard time when it comes to saving money. However, with the rise of the internet and e-commerce, can you blame them? We can now buy things with the click of a button and have the good shipped to our house the next day. Consumer spending is a disaster in America. If you feel like you’re having a hard time saving money, this article’s goal is to help fix that problem. Let’s get started!
1. Set a budget
Every month, you and your family should sit down and write out a budget that is unique to that month. Every dollar that comes in should know where it’s going for that month. It’s not a shock that most families fail to do this. In fact, this is most likely the reason they’re struggling financially.
2. Don’t buy what you can’t afford
This is also common sense but many Americans fail to abide by this rule. A lot of people work off of instant gratification and want everything at an exact moment. Because of this, they end up putting everything on credit cards only to reach the end of the month and not able to pay it off. If you’re broke, I’d personally stay away from credit cards. Instead, take the money you need out of savings. This will ultimately make you think twice about your purchase, allowing you to make a more informed buying decision.
3. Save at least 15%
Most Americans have less than $1,000 saved for retirement with their only hope being Social Security. However, you must also make it a goal to push away 15% of your income every month into savings. If you’re budget is to tight and you can’t make the 15%, focus your attention on increasing your income. Also, save up a emergency fund of 3-6 months of your expenses. For example, if your monthly expenses cost $2,000, save up $6,000-$12,000 for emergencies. This will ultimately lead to more financial discipline and financial freedom in the long run.