How to Get started in Investing

Here’s a fact If you started investing $1,000 a month at at 25 vs at age 35, that $1,000 a month would turn into over 2 Million by age 55. vs if you started at age 35 it would only be worth $700k.

What happens to you money over time

If you were to let your money sit in your bank over time we know that over time that money would slowly lose value to something called inflation which right now is around 3.7%. What that means is that over time things become more expensive. ex. If you were to buy a cup of coffee in 1970 it would cost 25 cents and now that same cup would be close to $2.

How to beat inflation

There are many places to park your cash to not only beat inflation but to also make you money. So we need to find a place that is going to give us a return higher than 3.7% .Here are the top 3 places to invest your money

1. High Yield Saving Account - 4-5%

2. CD- Certificate of Deposit - 4-5%

3. S&P 500 - 8-10%

The power of compounding interest

When you earn interest on your savings, that interest then earns on its self and the amount is then compounded monthly. The higher the interest the higher the return. With a return of 10% you would double your money in ten years!

Investing in the stock market

The stock market can be a great place to invest your money providing the highest potential to make money passively. That being said the stock market doesn’t always go up and depending economic situations can actually go down for a while. However we know that investing in the S&P 500 over the past 10 years gave an average return of around 8%.I’ll leave a referral link below with my favorite brokerage for investing to get started.

Other Investments

There are countless other options for you to invest your hard earned money. From real estate, gold, bonds, dividends, to Roth ira’s. Which all have different pros and cons to each, which well discus in future newsletters. So make sure to subscribe to stay up to date with the latest millionaire syrup!