Many people enter the job market immediately after school and jump feet first into life. The money comes from a job, then goes directly to obligations, food, entertainment … all the necessities and pleasures of life. This is often called being caught in a “rat race.” Every month it’s the same … money comes in, money goes out. Once you are stuck in it, it is very difficult to get out. But not impossible.
Now the money you make at your job depends on your ability to perform a task or function and the amount of time you spend on that task or function. Essentially, it’s about trading time for money using a learned skill. But this can’t last forever, can it? What happens when you are too old to perform these same tasks required for a job?
Unfortunately, for some people it lasts a long time. And when people who do not invest in things that will generate income, whether they work or not, can no longer work, they have nothing to help them live as comfortably as they are today.
Until most people get into a professional job that offers good benefits (including a 401k), money is rarely invested. Money is earned and spent as fast as it is earned, which provides the person with the necessities and comforts of life at the time, and something else, but does not allow much for a prosperous future once work income stops .
Everyone at some point in their life must face the reality that a job will not give them everything they want or need in life, especially a life after retirement age. Investing is something that is best resolved early in life.
To understand the importance of investing, you must first understand what investing is. An investment is a method of making money with a one-time effort. Sometimes this effort can be intense and take some time, but it can provide income for many years without having to put in the same effort or time.
If you do a lot of research to buy a home and use it as an investment, you only have to do that research once. Once you buy an investment, you will get money with very little effort. If you write a book and publish it on a website to sell it, you only have to write a book once and it will make money as long as it is active on the website or in a bookstore. If you research the actions of a company and find a perfect one, investing some money in it, the money begins to work and make money without you having to do anything.
These are just simple investment examples that require some effort. The point is, making money from investments is much easier than making money from a job if you know what you are doing. One big difference between an investment and a job is the amount of time and effort someone has to put into making money. The great thing about investing in the stock market (be it traditional buy / hold / sell trading, 401k investing, or options) is that you only have to learn how to do it once, keep repeating what you learned, and let every dollar you invest do. all the rest of the work for you so that you can enjoy life as it was intended.
Of course, there is a BIG problem that everyone faces before they can invest. Where do you get the money to use it? When you live life in a “rat race”, you eventually get caught in an impossible circle from which it is very difficult to get out.
Do not worry!
You have money … you don’t know it yet!
There are ways to make some changes in your life to start building up “equity” to invest in, no matter what type of investment you are looking to start. It will be slow at first, but it will definitely morph into something you may not think is possible.
One way to build investment capital fairly quickly is to open a “rounded” savings account. This type of capital growth account actually helps you save and accumulate money based on your daily purchases. Attach your checking accounts or credit cards that you spend money on to your Round Up account and, for each purchase you make, this account rounds to the nearest dollar and deposits that round the cash on an investment platform that helps your savings grow faster. Not much work, right? This special investment account does the rest.
For example, if you spent $ 20.57 on something, it rounds to $ 21.00. The rounding, or $ 0.43, is placed on your account, which is divided among several actions based on your account settings.
If you make 50 purchases from your checking account in a month with an average of $ 0.35 per round, you will save $ 17.50 in that month. That’s $ 210.00 in one year saved just by rounding up these purchases.
The money invested in this rounding account goes up and down with the movement of the stock market. With a 5% increase in one year, it will increase by an additional $ 10.50. And some stocks that your money is invested in earn dividends that are automatically reinvested in your account.
This doesn’t sound like much, but over time it will continue to grow. This is an investment in itself and can grow quite fast if constantly added. If you have extra money that you would like to save for a month, you can also make deposits to apply to your account and grow your account even faster.
A rounded savings account is simply a stepping stone to a higher level of investing, which can be a stock trade, an options trade, a retirement investment account, real estate, or whatever else you can do. invest that money to do more. money.
Once you build up some good investment capital in your Round Up account, you can withdraw it whenever you want and use it to buy assets (things that make you money, as opposed to liabilities) or to invest in stocks to earn even more money. over time.