Bryan Hoo's Blog - Posts Tagged "investing"
How To Invest Money
Alright, this is another lesson time! We will continue the topic about "How To Invest Money".
Investing allows you to significantly grow your money over time thanks to the power of compound returns.
Compounding can be called the Eight Wonder of the World. Thanks to the power of compounding, a single penny could grow into millions of dollars, given enough time. You may not live that long, but consider the following examples.
Say you start investing when you’re 16…
As unrealistic as it may sound to start investing that young, say you got a small inheritance and you decided to invest it—if you put $5,000 in an account with an interest rate of 7% and contribute an extra $200 a month, after 30 years you’ll have a little over $284,000.🤑
Now that you know why you should invest, how about when to invest?
The answer to that is pretty simple. The right time is now.
Investing sounds more intimidating than it is. Yes, there’s always a potential risk for loss, but there’s an even bigger potential for serious gain.
Doing anything for the first time can be terrifying, especially when it involves your hard-earned cash. But here’s some advice for first-time investors.
Investing for the first time
Investing is like religion—people have some strong opinions and may even belong to one of many sects or schools of thought. Here are a few that come to mind:
-The Doomsday Preppers – these people are convinced our financial system will collapse, so they stick all their money in gold and real estate.
-The Gambling Day-Traders – these are most often the people you see in movies, with their desks or walls covered in monitors and TVs, watching every second of the day and seeing how the stock market changes.
-The Indexers – these are people who simply invest in everything in order to take advantage of the slow and steady increase in the overall value of the markets.
If you already belong strongly to one of the above camps, you may not find the investing resources on Money Under 30 useful. If, however, you have an open mind and are interested in learning simple strategies for successful lifelong investing — without any gimmicks—then read on.
If you’re on the fence about where and when you should invest, make sure you’re taking advantage of guaranteed interest rates. High yield online savings accounts are currently offering up to 1% with FDIC insurance (which means your money is insured by the federal government).
Risk vs reward🙌
It’s true: Investing involves risk. We’ve all heard stories about investors who lost half of their fortunes in the Great Depression or even more recently in the Great Recession. We’ve heard about the Bernie Madoffs of the world and investors who lost everything to a scam.
Although you can never eliminate risk entirely, you can significantly reduce risk if you invest wisely.
The great thing about investing young, is you’re likely investing in longer-term investments—like your retirement account. These investments are less risky than quick-fix stock trading by people who really don’t understand what they’re doing.
While investing can be risky, it’s best to just deal with that risk, because not investing can cost you a lot more money than losing a little money on a bad investment.
Okay, that is all from today lesson. More and more interesting topics will be discussed in the future. Stay Tune~😜
Investing allows you to significantly grow your money over time thanks to the power of compound returns.
Compounding can be called the Eight Wonder of the World. Thanks to the power of compounding, a single penny could grow into millions of dollars, given enough time. You may not live that long, but consider the following examples.
Say you start investing when you’re 16…
As unrealistic as it may sound to start investing that young, say you got a small inheritance and you decided to invest it—if you put $5,000 in an account with an interest rate of 7% and contribute an extra $200 a month, after 30 years you’ll have a little over $284,000.🤑
Now that you know why you should invest, how about when to invest?
The answer to that is pretty simple. The right time is now.
Investing sounds more intimidating than it is. Yes, there’s always a potential risk for loss, but there’s an even bigger potential for serious gain.
Doing anything for the first time can be terrifying, especially when it involves your hard-earned cash. But here’s some advice for first-time investors.
Investing for the first time
Investing is like religion—people have some strong opinions and may even belong to one of many sects or schools of thought. Here are a few that come to mind:
-The Doomsday Preppers – these people are convinced our financial system will collapse, so they stick all their money in gold and real estate.
-The Gambling Day-Traders – these are most often the people you see in movies, with their desks or walls covered in monitors and TVs, watching every second of the day and seeing how the stock market changes.
-The Indexers – these are people who simply invest in everything in order to take advantage of the slow and steady increase in the overall value of the markets.
If you already belong strongly to one of the above camps, you may not find the investing resources on Money Under 30 useful. If, however, you have an open mind and are interested in learning simple strategies for successful lifelong investing — without any gimmicks—then read on.
If you’re on the fence about where and when you should invest, make sure you’re taking advantage of guaranteed interest rates. High yield online savings accounts are currently offering up to 1% with FDIC insurance (which means your money is insured by the federal government).
Risk vs reward🙌
It’s true: Investing involves risk. We’ve all heard stories about investors who lost half of their fortunes in the Great Depression or even more recently in the Great Recession. We’ve heard about the Bernie Madoffs of the world and investors who lost everything to a scam.
Although you can never eliminate risk entirely, you can significantly reduce risk if you invest wisely.
The great thing about investing young, is you’re likely investing in longer-term investments—like your retirement account. These investments are less risky than quick-fix stock trading by people who really don’t understand what they’re doing.
While investing can be risky, it’s best to just deal with that risk, because not investing can cost you a lot more money than losing a little money on a bad investment.
Okay, that is all from today lesson. More and more interesting topics will be discussed in the future. Stay Tune~😜
