People invest their money into the stock market hoping to see their money appreciate. Sometimes that money appreciation happens immediately, but most of the time appreciation is seen over the long-term, and small 1–2% increases that feel unnoticeable now can become quite noticeable in a few months if your portfolio has an upward trend.
Most people invest in the stock market through stock purchases. They buy some shares of their favorite companies and hold onto them for a certain amount of time. …
Saving for retirement is a good thing. Investing your money and watching the returns compound over time is also a good thing.
Investing and minimal expenses are two incredible vehicles that will speed up your path to retirement. Then, once you retire, you can live off the money and spend it from time to time.
The last part is where problems emerge. Now, there is a fine difference between buying your way to experiences versus the latest Gucci fashion items.
But you shouldn’t delay the most exciting parts of your life.
One of my life goals is to run in all of the Marathon Majors (New York, Boston, Chicago, Berlin, London, and Tokyo). …
It’s a well-known fact that some billionaires pay surprisingly small tax amounts relative to their net worth. In some years, Amazon pays $0 in federal income taxes despite reporting billions of dollars in profit. How can that be?
Even when Amazon had to pay taxes in 2019, they paid $162 million which only represented roughly 1.2% of their monthly income.
We can all think of a few super-wealthy people who seem to pay relatively little taxes compared to their net worth. This has led to the misconception that the taxing system favors the ultra-rich.
However, the taxing system doesn’t favor anyone. The taxing system contains several rules for what gets taxed, at what percentages, and what doesn’t get taxed. …
The stock market has created many millionaires. While there’s certainly some luck involved, it’s far more likely to become a millionaire in the stock market versus through winning the lottery.
The stock market is also an attractive option because it doesn’t require as much work as real estate. For the stock market, you just read through a lot of articles, do your research, invest in stocks, and not let your short-term emotions get in the way of the long-term plan.
Every millionaire investor followed at least two of these three paths to reach the 7-figure status. …
Saving money is an essential personal finance skill. And contrary to some beliefs, saving money doesn’t mean reducing your lifestyle. Saving money allows you to focus more on the things that matter. Once you start saving and investing, you’ll get addicted to it.
These 7 money-saving strategies don’t take much time to implement. Starting with these will go a long way on your path to financial freedom.
Ideally, you should continue holding onto your existing smartphone. However, your smartphone may eventually not work the way it used to.
It’s in these cases where you just need an upgrade…no way around it. …
Dividend investing is a long-term game. It’s the best way to get rich slowly and eventually generate enough cashflow to cover all of your expenses.
Just because a process works doesn’t mean it will work for everyone. That’s because we operate on emotions rather than logic, and we can get swayed away from dividend investing to pursue growth stocks instead.
Both investments present great opportunities, and you can blend the two together. …
Investing is the best way to build up wealth. You can earn a solid income, but if you don’t invest it, you leave considerable money on the table. You can use investing to achieve a variety of goals from cashflow. tax protection, and appreciation.
On the path to successful investing, many investors fall prey to 5 common mistakes. Some of these mistakes are beginner mistakes while some experts even continue to make these mistakes.
Identifying the mistakes and noticing them in your life is part of the battle…so let’s get right into it and identify the 5 common mistakes investors make. …
Almost all debt is bad. If the debt isn’t towards an investment that yields a positive ROI, it’s bad debt. And even if your debt is around an investment, you’ll eventually have to pay it off.
Debt has the ability to snowball if you don’t properly manage it. And plenty of big purchases encourage massive debt. Many people spend years paying off their car only to end up buying a new one so they stay in style.
Similarly, homeowners will spend decades paying their mortgage. …
ARK Invest is a well known ETF that has risen to incredible heights that dwarf over the S&P 500. In a 1 year period, the S&P 500 had a 15.85% return which is greater than the market average.
ETFs often measure themselves against the S&P 500, NASDAQ, or DOW to determine if they brought in a solid return.
Most ETFs fail to beat the market, but ARK Invest is a different story. Most of their top ETFs doubled this year, and you can see the entire break down in the chart below.
Some ETFs have a fluke year where they beat the market only to crash the following year because of overvaluations and other reasons. The 5 year performances of each fund and the S&P 500 shows how far behind the S&P 500 is to ARK Invest’s incredible returns. …
Are you prepared to win the lottery?
Although your statistical chances make this reality very slim, it’s a possibility. But what would you do with the money?
Would you treat yourself to incredible vacations, buy a bigger house, and a fancier car while you’re at it?
Or would the sudden, dramatic jump in your net worth not result in excessive splurging?
Most people think their lives would be different if they had a set amount of money. “If only I had a million dollars,” is a popular frame of thought that captures this concept.
But if you look at the history of past lottery winners, you’d realize more money isn’t always the answer. According to the National Endowment for Financial Education, over 70% of lottery winners end up going broke within a few years. …