*Disclaimer* I am not a Licensed Investment Expert or Financial Professional. The information in this blog is just knowledge I accrued through self-study. Everything in this blog is just my personal opinion. Please consult a real Financial Advisor to assess our situation and needs!
What Platform I use to Invest:
I Personally use Robinhood because it is easy to use and easy to link accounts to it. I personally Love the app despite the bad publicity it has been getting since the Gamestop Shut Downs, but I still really like the app.
Down below is a screenshot of my current portfolio and hopefully you guys will see how it will be growing in the future!
If you don’t have Robinhood use this link to sign-up and we both get a Free Stock worth up to $500! https://join.robinhood.com/nicholc7278
What is a Stock?
To start things off, a stock is a type of equity security that represents ownership of part of a company. Essentially meaning you get a piece of the pie. Stocks are broken down into shares. Normally what you’re buying are shares (For example, You can buy 20 shares of Tesla Stock).
Why Do I Invest in Stocks?
I Invest in stocks because I wanted to start building a portfolio early and start earning that sweet passive income now. I’ve always heard that the wealthy people always keep a portion of their money in Stocks, but the thing is I never understood how they made people money. It turns out there are 2 ways you make money in stocks:
1.) Equity: Is when you make money once the stock you have goes up in value.
For example if you paid $5 for a stock and now it’s $10, that means you gained $5 in equity.
2.) Dividends: Are essentially getting a piece of the pie. A company is making profit and they decide to pay their shareholders. Dividends aren’t guaranteed, but big and stable companies usually pay out to their investors/shareholders. You can also gain money in the form of Dividend increases which are also really cool!
3 Important tips I Learned:
1.) Time in the Market beats Timing the Market: What this means is that you should never try to time the market. Sometimes you would think waiting until the market is really low to buy in will be the best idea, but you are potentially missing out on so much just by not investing. Start investing early and be consistent with it.
2.) Have a plan: I follow this rule for my budget: 70-10-10-10. 70 Percent of my income is what I use to live since my income is rather small, 10% immediately goes to savings after each paycheck, 10% of each paycheck immediately gets invested, 10% for miscellaneous things. This ensures that I am investing consistently every month. Also, I invest in monthly dividend paying Stocks, ETFs, and Indexed Funds. I can go over those in detail later, but that’s my strategy for my portfolio and I stick to it
3.) K.I.S.S Method: This stands for Keep It Simple Stupid. I don’t invest in too many different stocks right now and most of my money goes into Indexed Funds such as SPHD to make things easier for me. The reason why is because with every company you own, you should do some research and keep up with the company and that’s too much work. Which means currently I’m only invested in a couple of things.
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