Putting Your Investment in Perspective: Percentage is the Focus
ERIN N. SIMON
Inspired In-Spirit Publications
Investing in the Stock Market, for most people is covered in fear, fallacies, and mystery. If the average person took the time, to understand investing, living paycheck to paycheck would be a thing of the past. Understanding certain principles, that accompany investing, would influence better spending and saving behaviors. While the stock market is suffering due to Corona Virus fear-based selloffs, this is the perfect time to really do your research and learn about how you can capitalize off America's money machine. You will be able to buy low, watch the market recover, and gain. Right now, focus on learning HOW to invest in the Stock Market! When the recovery happens you can gain.
Here’s my husband's, (Gordon Simon, Investor) tip of the day. Many casual investors tend to focus on the dollar amount. They invested $250 and only made 5%. All the casual investor sees is a return of $12.50. They may feel discouraged. They may begin to think it is a waste of their time. Let’s shift their perspective so they can truly understand what is going on.
Take every opportunity to enhance your Investing skills
A profit of $12.50 may seem minor, but it’s a big deal. My husband's suggestion for that investor is to continue investing, no matter how little. Every opportunity taken to invest, increases your skills and intuition, in selecting the right stocks. You made a profit! No matter how big or little, the research and selection process you engage in, will get better with time, making you a better investor!
Little adds up, Exponentially
Today is a 5% increase, which may only be $12.50. Two weeks later, you may invest in something that yields a 13% increase on your $250. You cashed in $32.50. Just think, for the month you made $45. This may not impress some, but consider it’s $45 you didn’t have to trade your time and labor for.
Also, I’ll tell you a secret to change your perspective. Don’t focus on the dollars! Focus on the percentage. It will keep you encouraged and push you to pursue diligence, in enhancing your craft. Using the model above, you yielded an 18% return for the month. Yes, it was $250, but imagine if you yielded that same return on $2,500. You would have made $450 for the month. It’s still the same 18%, but once you strengthen the skills that come with researching the right investments, you can risk higher amounts of money with confidence. Now, consider that you continue to invest. Your returns in addition to any money you may add to the pot, will yield substantial returns, with even the smallest percentage increase. 18% increase on $25,000, brings home a whopping $4,500. No matter how small your return may seem, it can grow exponentially! Don’t be discouraged and continue doing your due diligence in strengthening your investing strategies and selections.
Solving the Dilemma of not having money to invest
Believe it or not, you do have money to invest in the stock market. An investment as small as $100 can begin to bring home extra bacon. Looking at the model above, you can see how you may be able to go from investing $100 to investing $10, 000. Here are some things, I’d like you to consider:
1. Limit eating out – Eating at restaurants is expensive. The bill for two people eating out can easily be over $60. Do that 2-3 times a month and you’re spending anywhere from $120-$180 a month. Add $20-$30 more if consuming alcoholic beverages. This is almost $200 that go towards investing. Able to take this $200 a month and add to your investments, monthly? You’ll see that your initial pot goes from about $200 to $2,400 in just a year!
2. Maximize your Tax Return – Let’s be honest. How many Americans blow their tax returns on stuff they don’t need? This is a great way to make maximum gains for the year. If a single mother who is entitled to Earned Income Credit, has 3 dependents, she can easily invest $2,500 into the stock market and still have money for the essential items, her household needs.
3. Tuition Reimbursements – This reimbursement is offered twice a year to college students. College students with dependents are eligible for larger reimbursements. While many students utilize it for necessary books, equipment, rent, and other necessary expenses, it too, can easily be misallocated. Investing as little as $500 the two times a year, is already a $1000 investment. Imagine what that could yield monthly, throughout the year.
4. Storing your Acorns – There is an app that allows you, to invest all of your change, for every transaction you make electronically. This is awesome! Yes, you may be starting off small, but consider how your initial pot will grow exponentially daily for an entire year. Most people track the money they spend, but ignore the change, from each transaction. There is absolutely no excuse as to not having money to invest.
5. Budget investing like you would a bill – When committing to this, consider one important thing. This monetary commitment IS GOING TO MAKE YOU MONEY! It is not money spent, every month. It’s money gained! Even an amount as small as $50 will begin to grow and blossom! Every return is X number of hours you did not have to trade your time and labor for. MAKE THE COMMITMENT, like you would a creditor that you owe. Remember, it’s working for you, not you working for it!
Remember, while your initial investment is small, this is the perfect opportunity to work on crafting your investment strategy. It will give you room, to make mistakes, while working on enhancing your craft of investing. As you get better in your research and selecting process, you will gain confidence. The ability, to consistently make gains will increase.
Never forget, your perspective is in the percentage! Don’t focus on the dollar amount. Focus on your investment strategies.
Consistency is King!
ERIN N. SIMON is a writer, blogger, and visionary in raising the conscious level within her Community. One of her passions is to create a Black Media that truly matters, is promotable, and shared with as many people as possible. In 2013, She and her husband started Inspired, In-Spirit Transformation. They have recently started a Publishing Company called Inspired, In-Spirit Publishing which have multiple published books on their shelves, four of which are Erin's; Interruption: Shae's Search, Interruption: Interlude & The Series Finale Interruption: Alter Ego, & Undercover & Under The Covers: Starring Detective Aja Anderson. Her husband has a company known as GS Investments in which financial freedom is gained one investment at a time. She currently resides in Mexico City with her husband and four handsome sons...