Start Your Investing Journey in 2022
27 December 21
Are you tired of living from paycheck to paycheck? Have you promised yourself to work on your financial stability in 2022? Then this article might put you on the right track. Just as with anything in life – to be efficient and consistent one needs structure. The road to financial freedom becomes much easier to navigate when you have a map. The topic is so broad that you could write 10 books about it and you would still only be scratching the surface, but let’s start with your money working for you and not the other way round.
Don’t keep your money under a mattress
Since we were kids, we were taught to save money. It is the main and, in many cases, only financial lesson learned by most. There is nothing inherently bad with saving money, and it is the better alternative to spending it. But in this day and age I would argue that investing your hard-earned cash instead of putting it aside is the better option.
Invest in something that matters to you
Find something that interests you: technologies, automotive industry, medicine, politics, real estate, or anything else for that matter. There are no wrong choices here, just make it consistent. There are many ways to invest in a field you are interested in, the most popular options are buying stocks, bonds, real estate, even appreciating cars (if that’s what you are into). Again, there is no one best option, what is important is to choose an industry that you are already interested in and become an expert in every aspect of it, so you could judge objectively what will generate value in the long-term.
Consider index funds
If there are no specific industries that you like, a good idea is to invest in index funds such as S&P 500 or DOW J. If you had invested $5,000.00 USD 10 years ago with an additional monthly investments of $400.00 USD with an average annual compounded return of 12% you would have over $105,000.00 USD today. Which is a 100% return on your investment. The longer you hold money in the market – the more money you make.