MPower: There’s Never Been A Better Time To Start
There is an old Chinese proverb that I find myself reminding myself of constantly throughout my life.
“A journey of one thousand miles begins with a single step.”
I find this proverb to be especially true when it comes to investing. My career has often led people to ask me about advice about investing. Now, since I am not an investment advisor I am always reluctant, however, there is one common tip I give. This simple piece of advice? Get started.
I have family members that are much like a lot of people out there. They don’t really know much about investing, and therefore, don’t invest at all. In the face of rising prices and sticky inflation prices, this is one thing you absolutely CANNOT afford to do.
While I can’t tell you what stocks you should absolutely invest in and where they will be in the next 5 years, what I can tell you is the value of getting started, no matter where you are in life.
I love my family, but seeing them struggle with finances breaks my heart, and if you have anyone close to you or you yourself are struggling with finances, you know what I mean. However, even in the toughest of times, we must be forward thinking.
So while you or someone you may know may find your budget increasingly getting tighter, we still have to try and invest whatever we can, even if $50 per week. For those who have never invested, this is where the journey seems like the longest.
That single step seems almost too irrelevant when they look at the rest of the 9,999 miles still ahead, and thus, they never take that first step.
And yet, this step is by far the most important of any of them. This is the time where you finally get some skin in the game and learn from doing. On top of that, the more you stick with it, the more you see the compounding effects of consistency in the market take shape.
The greatest wealth building strategy we have available to us is using our income to create wealth through investing. This is why you hear so many financial gurus say you have to make your money work FOR you.
Investing is how we put our money to work. If we don’t, our money is either losing value to rising consumer prices, earning next to nothing, or you spend it. In the end, both actions work against you and your dreams of one day retiring.
Now the question becomes, what is the first step?
Just starting out, the focus should be on education and learning from the experts. Then when you have a baseline knowledge of the market and how it works, your best friends will be ETFs.
We have mentioned ETFs a few times in this newsletter and that’s for good reason. Most people aren’t spending every waking minute locked in on the market like those of us in the business, so this makes the most sense for them.
Take our first result. Buying one share of the SPDR S&P 500 Trust (SPY) is a fund that tracks the S&P 500 index. So investing in one share of SPY actually gets you a piece of all 500 companies in the index. With one stock, you’ll gain exposure to the best businesses in the world, at a fraction of the price… and risk.
So remember, your financial journey may look too long, but that’s only because you haven’t taken your first step. Make today the day you take that first step.
Today’s feature: Passive ETFs
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