Investing in stocks and shares
And in this context, the way we provide value by donating our money. Investing and investing in a service is a way of giving value.
So, when we give a company our money in the form of buying its shares, it makes sense that we can get some kind of return on that investment. . And we start with this because investing in stocks is an easy way to make any kind of income. If you have any kind of savings and are sitting on a savings account, they earn 0.01% interest, they do not do much for you.
Even if you did have that savings and kept it in stock, you could still earn an income from the money sitting there. Now, I have a whole video called "A Great Investment Guide for Starting Markets and Stocks", which will be linked there somewhere. So that's a solid half-hour introduction to stock and how they work.
But the thing I recommend to many beginners as a non-financial advisor, and this is not financial advice, for entertainment purposes only, or people say so, or at least something I do is actually all my money inside. stocks and shares are invested in reference funds.
Now the index wallet is something like the S&P 500. And if you invest, let's say $ 1,000 in the S&P 500, that means your $ 1,000 is still being invested in the top 500 major companies in the US. Therefore, it is estimated how big they are. Therefore, 2% of it will be Apple, 2% on Facebook, 2% on Google, 2% on Microsoft.
And then you probably won't hear of the 500 companies on the list, but basically, all the big US companies you've heard about end up investing in all of them little by little. So, if you want to get started with that, all you need to do is sign up for a stock broker. If you are in the US you can use Webull, I think I have a link to the description.
If you are in the UK, you can use Free trade or Vanguard. In fact, in any country on Google the phrase, the best seller forum, the name of your country and you will find something that works for you. And then it is very easy to be able to invest in an index fund. Therefore, within the test matrix of the popular side, we will give a start-up difficulty, one star rating, one in five.
It is very easy to get started with stocks. How difficult is it to make $ 100 a month by investing in stocks and stocks? Yes, this type depends, because it depends on the performance of the stock market as a whole. So, in the last 12 months, from 2020 to 2021, the S&P 500 has actually increased by almost 50%. .
So if by April 2020, you had invested $ 2,400 in the S&P 500, the fact that it was up 50%, it would have made $ 100 a month. But obviously, this is not the way to look at it because things can go up and down, and the stock market has different levels of performance depending on what time you look at it.
But when we estimate 30 to 50 years ago, the S&P 500 had a return of nearly 10 percent. Which means that every year, on average, over time, it increases by about 10% .This is not in exchange for inflation for any economists among us.
So if we do envelope calculations, if we want to earn $ 100 a month, peacefully, in stocks and shares, we will need about $ 12,000 invested in the S&P 500, making that 10%, $ 1,200 a year, which is $ 100 a month. But as I mentioned in that video about stocks, overtime, we have a sum, so, if you put $ 7,500 into the S&P 500 and leave it there for five years, and then five years later you will be making about $ 100 a month, if we go by this average figure -10% per annum.
Or if you invest $ 5,000 in the S&P 500, 10 years later you will be making $ 100 a month with just the income. Also, we take a 10% rate. After all, how difficult is it to make $ 100 a month from stocks and shares? Well, depending on how hard it is to make $ 5,000, 7,500, or $ 12,000 and put it in the stock market index fund?
And most importantly this is the money you should not need to touch in the next five to ten years, at least. So how easy is it for you to make that kind of money? Obviously it varies greatly depending on your country (laughing) and what your circumstances are and what your job is. But if you are in the UK or US where the average income range is about $ 50,000, something like that, and then depending on your circumstances it is not so difficult to get $ 10,000 in savings. Obviously, if you support a family of 15 for $ 50,000, it is different.
If you are one person, too, it is different but I will give this about three out of five stars with the difficulty of earning $ 100 a month. Obviously, if you live in a country like India where the average salary is $ 3,600 a year, it is very difficult to make $ 10,000 in total savings.
And finally, the third step on our side of the hustle assessment matrix how difficult is it to keep this revenue once you have set it up in the first place? And we will give this one out of every five stars because once you have the money in you just put it away and forget it and it is not so hard to take care of it.
There are other sources of income that require higher levels of care over time. But stocks and stocks are the easiest way to make money and use my personal example these days my stock and stock portfolio, which I have been investing in since 2015 now now costs about $ 350,000. And most of that is in the S&P 500 index bag. Now, I would not worry about getting a real return adjusted according to that inflation. But also, if we take the worst rate of 10% per year, that means it is estimated at about $ 682 per week with just passing.
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