Listen up, Dynalect readers. If you’re not actively investing your money, you’re missing out big time.
We say that a lot around here, but I don’t think its really sunk in for most of you.
Consider this: if you have money sitting around in cash or in your bank account, you are losing money every single day.
So invest it! Time in the market is always better than timing the market; give yourself as much time in the market as you possibly can!
Now, I understand that some of you might not think you have the financial means to be investing any money. You might be saying:
“Kristian, I haven’t invested my money because I don’t have any money.”
Nonsense. The very fact that you’re reading this means you have some money.
Here’s some math for you:
Let’s say you’re 20 years old, and you decide to invest $10/month in a healthy stock portfolio. Let’s also assume that you’re able to achieve 8% annual return, which is lower than what has actually happened historically over the long term.
For the cost of contracting e.coli at Chipotle and washing it down with a drink once a month, you could have about $22,000 sitting in the bank by the time you’re 55.
See all that yellow stuff in the graph? THAT’S MONEY THAT YOU ARE MISSING OUT ON BY NOT INVESTING.
Every single day that you sit around thinking about investing or wishing you were better off financially without actually doing anything is a wasted opportunity.
Money ads up quickly over time. So instead of tinkering around on the internet passively looking for investing advice and reading an article or two every month about the “3 MUST BUY STOCKS RIGHT NOW,” here’s a 3 step strategy to getting involved right now in building a better financial future for yourself.
Step 1: Download Robinhood
Seriously, people. This is not complicated. Stop acting like children and just go to the App Store, search “Robinhood” and download that shit right now.
Great! Now send us an email to let us know that you’ve done it so that we can congratulate you and stroke your ego a little bit.
Ok it’s time to get set up. Unless you are actually illiterate, you should be able to follow the instructions on how to open your account. You must be 18 to open an account, so for all of you youngsters who are reading this and hoping to get a head start on things, I apologize on behalf of the SEC for not allowing you to take responsibility for your financial future.
Bookmark this page for future reference so you can come back to it on your 18th birthday. There is no time to waste.
“But Kristian, I don’t have my own bank account. What should I link my Robinhood to?”
Seriously? Are you 9 years old?
Step 2: Buy a Stock!
For those of you who have a limited capacity to think for yourself, let me make this as easy for you as I possibly can.
Buy a share of Ford Motor Company.
It’s cheap ($11). It’s a low risk stock. They make a ton of money. And they pay a sweet dividend.
Now that I have taken all of the hassle out of choosing a stock, and researching whether or not it’s a decent investment, etc, etc, etc, you have no reason to not go do this right now.
One of the number one mistakes I see young investors make when they’re first getting started is procrastination. They get themselves into a state of analysis paralysis where they’re so overwhelmed by the task at hand that they end up doing nothing at all.
Don’t be like that. Even if your first investment is a major mistake, which for Zach it most certainly was, at least you got started, learned something about investing, and can move forward.
While we’re on the topic of procrastination, here’s a funny story about a mistake Conor made along the very same lines.
Several weeks ago, Conor recommended buying Ether, which is a cryptocurrency somewhat similar to Bitcoin. Instead of taking his own advice immediately, he waited around a few days.
And then this happened:
Don’t be like Conor. Figure out what you want to buy, and Do It Now.
Step 3: Learn a Little Bit Every Day
As far as I can tell, the hardest part of starting to invest is overcoming the initial learning curve. Investing can be very intimidating, but it doesn’t have to be.
There are a lot of finance bros on Wall Street who tote around thinking they’re hot shit because their such good investors, but most of it is nonsense.
With a little practice, you are just as capable of making good investment decisions as a typical financial advisor.
All it takes is a commitment to learning a little bit every day. Read the Wall Street Journal in the morning. Watch Dynalect’s Market morning on our Facebook live-stream where we break down big financial news for you. Follow our industry reports. Look stuff up on Investopedia, or… I don’t know… GOOGLE!?
Take baby steps every day, and in no time at all you’ll arrive at the end of the marathon with more financial know-how and stability than anyone around!
Good luck out there and see you next week!