Investing is the ultimate long term game. There are many ways to start investing. You can invest in real estate, stocks, index funds, start a business, you can also invest in yourself. Yes, that’s an investment too. The more you learn the more you earn.
Think about it, the more you study about real estate, the more things you learn about this type of investment. The more you study about stocks, the same, index funds? the same. That’s investing in knowledge. The more you learn the more you earn.
Is investing exciting? No, it’s boring, there is not fast action here. It’s really slow and boring. But that’s the beauty of it. When you invest today in an index fund and decide that you will not touch that money for the next 30 years, that money will work for you every single day. At the end of the 30 years that initial investment you make will worth much much more. I can guarantee that.
And did you work for that investment? Except for clicking a few buttons and deposit the funds in your broker, you did nothing else. It’s a passive investment. You did nothing. You just clicked the buy button and that’s it. It’s not rocket science.
Let’s see another example. You decided to buy a rental property. You did your research, found a good deal near your neighbourhood, paid the down payment, and now you own it. Congratulations, you just bought an asset that will generate cash flow for the rest of your life. Yes, you will have to fix a couple of things that will break along the way, but that’s part of the game. That asset belongs to you. The land will appreciate as the years passing by, your mortgage will be paid off eventually from the tenants and then your cash flow will be even bigger.
The final example, invest in dividend stocks. Blue-chip companies. A dividend is the ultimate passing income. THE ULTIMATE. You do absolutely nothing. No phone calls, no meetings, not presentations, nothing. You just buy the stock, and that’s it. Every quarter you will receive a cheque just because you hold some shares. What do you do with that money? You reinvest it, you buy more stocks of that company, and the compounding effect does its magic.
And you do that day after day, month after month, year after year. And that money works for you while you sleep, while you are at work, while you are on holidays.
Not investing is the biggest mistake a person can make. The sooner you start the better. I wish i had started when I was 20. But hey, better late than never.
Remember, investing is a long term game, and it’s boring. Get used to it.
I make my investments with Interactive brokers
Books to read
Think and Grow Rich | Buy on Amazon
The little book of common sense investing | Buy on Amazon
I Will Teach You To Be Rich | Buy on Amazon
The Intelligent Investor | Buy on Amazon
A Wealth of Common Sense | Buy on Amazon