Have you ever wondered how rich people get rich? They begin somewhere.
There’s a powerful quote from businessman and motivational speaker, Nido Qubein, who says, “Your current circumstances don’t determine where you can go; they just determine where you start. In other words: even if your disposable income is not where you would like it to be, the key part of any process is that you begin, whatever your starting point. After all, you don’t know where it will end up taking you.
And here’s the secret: Just because the flashy overnight wins from the headlines don’t apply to you, doesn’t mean you’ve missed the boat when it comes to investing.
You’ve probably heard all the fuss around crypto. People use Bitcoin to buy boats, pay rent, and do all kinds of everyday purchases. In fact, Standard Chartered grabbed the headlines when the investment bank announced its belief that Bitcoin would rise to $ 100,000 at the end of this year or early next year. And it’s not just Bitcoin on the rise. Analysts predict the biggest cryptocurrency could be valued at $ 175,000 someday.
Of course, memes stocks are also hot right now. Especially after investors pushed the GameStop stock price from just $ 17 to over $ 500 in a matter of days, dragging dozens of heavily shorted and cryptocurrency stocks with them. Remember when? But short-term trading, while it can certainly bring you big gains, is rooted in risk.
Longer-term investing, on the other hand, puts capital aside – sometimes for decades, through bullish and bearish markets, ups and downs – only to eventually grow with market rises and compound interest over time. time. The sooner you start investing, the more time your money has to earn Following money — growth that will likely exceed inflation. This is especially true if you diversify your portfolio across asset classes and sectors to mitigate risk, minimize potential losses, and protect your gains against inevitable market volatility.
In fact, research suggests that investing typically generates annual returns of around 8-10%. Over the past 70 years, stock prices have increased by 1,100%. So if you had invested just $ 1,000 seven decades ago, that investment would be worth over $ 1 million today.
A new study from TBEN also shows that investing a small percentage of your annual income could net you over $ 3.3 million in potential retirement earnings. The study looked at the past four decades to determine how much an average 25-year-old who earns a median annual income of $ 40,456 would accumulate over the next 40 years if they had invested 15% of their income (if the market conditions remain comparable).
This is why the most regrettable mistake you can make is not to invest in the wrong stocks; on the contrary, it does not invest at all. Because lost opportunities tend to sting the most.
Yet less than half of Americans under 30 are invested in the stock market, according to TBEN. Why? Ally Financial research shows that about 61% of adults agree that investing seems “scary or intimidating.” Plus, the reality is that most of us don’t feel informed enough to do it on our own, according to the Investopedia survey of Millennium Investments for the Rich. As such, people tend to grapple with anxiety surrounding their finances, suggests Bank of America’s 2020 Best Financial Habits Millennium Report. In reality, more Americans worry about their financial future, according to a study by John Hancock Financial.
Fortunately, nowadays, with the advent of AI-powered robo-advisers, everyday investors have access to investment tools they never had before. The AI is totally changing the game to make it a lot less scary and intimidating and a lot simpler.
Take, for example, Q.ai, the world’s first such investment platform. Q.ai offers everyday investors privileged access to the world’s most successful private investment strategies, the same strategies the aforementioned wealthy have used to build wealth all this time.
Plus, if you’re waiting to pay off debt before putting yourself in a more comfortable financial position to invest, note that research from Northwestern Mutual suggests that one in 10 Americans think they’ll never be debt-free. So you could wait a lifetime …
At the end of the day, you will never have a higher risk tolerance than you do today. Read it again and start with what you have, where you are.
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