Investing in the stock market and mutual funds is another important revenue opportunity. You can earn money on the money you have saved, creating you an engine that can help you enjoy all the fruits of life.
My biggest influence in investing is my father. He has been trading stocks for over 40 years. He has learned how to play the emotional market and understands how to analyze companies. While I am more conservative, I do believe investing in the stock market is an important way you can diversify your portfolio.
What is my strategy?
- Dividend Stocks – I am a fan of cash flow. So naturally, I look for stocks that will pay dividends and show the potential for growth. This is a win/win strategy. I am earning steady cash flow through dividends and earning appreciation on the stock price. With those dividends, I can use them to invest in opportunities as they come up.
- Preferred Stocks – Usually in the banking industry you can find good high quality preferred stocks that are paying 6% annually. The price of the stock does not fluctuate much and the only risk is if the company goes out of business. I like to use this tool as an opportunity to earn money on dividends and if the market crashes like in 2008 or March of 2020, you can sell your preferred stock and invest it into the market when the prices are low.
- IPO’s – I like to speculate and gamble a bit on this one for quick bigger returns and then sell them since I am not generating dividends on my money. I am in the tech industry so I enjoy buying shares of tech companies that I feel have a strong future. Some of my favorites have been: Facebook, Zoom, and BigCommerce (Only because I am kicking myself because I did not buy SHOPIFY!)
- US Treasuries – Not really a fan right now with the rates so low! They used to be a stable option if you are trying to park your money in cash as you wait for the next big buying opportunity.
Here is a book you can read to learn more about investing!
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