Investing, like eating and sleeping, is done by everyone but done correctly by few. There is no purer form of self-improvement than proper investing. Thousands of years ago, written in scripture, man realized the importance of saving now for future benefits. Humans learned to store food to ensure nourishment in winter. Teaching a man to fish now will feed him and his family for a lifetime.
Investing is more than saving money. It is the selection of future benefits over current impulses. Investing can be aggregating money to spend on a life-long memorable trip. You may save up for your own or your child's college tuition. You could even invest time into education knowing your learned skills will earn you money in the future. You may even be interested in investing to blow it all on a banger in Las Vegas.
What is Investing?
No matter what you invest in, there are two key elements to investing.
1) A goal with a defined end-point
2) A commitment to consistency
Whether you are investing time in the gym to obtain an optimal physic or time on the golf course to better your game, everything you do is an investment of at least time and often money.
Is what you are investing in aligned with your future goals or present desires?
Investing in what you want is the only way obtain it. The first step is defining your goals.
Finding What You Want in Life
This website will not be focused on helping you find what you want. There are many websites online that specialize in that and would be much better resources.
Here are a few:
Understanding yourself and defining a life purpose are the keys to finding meaning in life. Your life purpose can start small, like passing a class, or cleaning your room (thanks Jordan Peterson), but over time, your thirst for meaning and purpose will grow along with your goals.
Spend time thinking about your goals before you begin putting money in the market.
The only way to be successful in the market is to set targets and be consistent.
Financial Investment the FMI Way
In Tony Robbins's Money Master the Game investors learn the major difference that 1% in fees can make. Using a trading service or investing in a fund with relatively higher fees can cost you hundreds of thousands in retirement. The lower the fees the better. Zero fees are optimal.
Commitment to investing is absolutely critical once you get started. If you put $100 into an investment account and watch it sit, you will have ~$1600 in 30 years. $1600 is nice, but won't be able to purchase a car or house.
Instead, if you put in $100 every month for the next 30 years, you will be sitting on almost $200,000. Enough to put a down payment on a house or pay for College Education.
Let's say on average, with promotions, you earn a 5% raise every year and increase your commitment by 5% accordingly; you will be sitting with $206,000 in 30 years. Not a huge difference right?
Let's instead say every 5 years you double your commitment. Year 5 $200/month, year 10 $400/month ect. After 30 years, you will be a millionaire!
So what is important here isn't having tons of money to invest today. What is important is that you start with something a Grow that amount over time as you earn more.
If you missed the first 10 years of our millionaire scenario but started investing $400/month beginning in year 10, you will be left with $800,000. That is a miss of $200,000 in the future by forgoing investing only $12,000 during that time (Year 1 - year 10).
The point is, due to compounding and market returns, investing whatever you can today, even a small amount, and staying consistent, will yield huge returns in the future.
How To Invest
We offer many articles that dive deep into investing mechanics. We even have a high-level overview of how markets work if you are interested. However, here is the 1000 foot view of how to invest.
Due to the interconnectedness and complexity of the market, we recognize it is quite difficult to beat the market returns over time without the correct tools.
1) We hold a strategically diversified portfolio
2) We use a Zero Fees Investment platform
3) We Buy Stocks (or Index Funds) and Set Target Exit Prices (or Hold for the long run)
4) We reassess our Target Prices monthly and rebalance accordingly
Free Market Insights provides all the tools you need to build an educated portfolio; whether you want to invest in index funds or take a little more risk and invest in individual stocks.
Now head to your profile page to check out the financial tools we have available customized to your experience. Also, check out our research articles to learn more about stock pricing, investing, market fundamentals, and more!
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