I have a sneaking suspicion you already know what investing is, but just in case, let’s define investing terms. Then I will tell you how to do it.
What is Investing?
Investing involves committing money in order to earn a financial return. This essentially means that you invest money to make money and have it work towards achieving your financial goals.
Regardless of where you invest your money, you’re essentially giving your money to a company, government, or other entity in the hope they provide you with more money in the future. People generally invest money with a specific goal in mind, for example, retirement, their children’s education, a house — the list goes on.
Investing is different from saving or trading. Traditionally, investing, in general, is associated with putting money away for a long period of time rather than trading stocks on a more regular basis. Investing is riskier than saving money. Savings are sometimes guaranteed but investments are not. If you were to keep your money under the mattress and not invest, that’s savings — you’d never have more money than what you’ve put away yourself.
Typical investing will see you on average generate a 5.48% annual return as per the illustration above. Could you do better? Keep reading.
That’s why many people choose to invest their money. There are many things you can put money into. Here are just a few of those things.
Types of Investments
- Stocks
- Options
- Forex (Currency Trading)
- Commodities
- Real Estate
- Trying to sell on Amazon
- Making Emojis
- Fokas Beyond Covered Calls
Now I know you’re eager to learn the investing basics given that you’re reading this article.
Basic Investing Tips for Beginners
Before I go over the specifics of what you should consider investing in, let’s first go over the basics of how one invests.
Saving money is what happens when at the end of the month after the bills are paid, you’ve got a few dollars left over to put towards your future and invest. No investing happens without putting money away. How are you supposed to find those elusive extra dollars to save? Here’s how.
Avoid lifestyle splurges
The key to saving is to do your absolute best to avoid what I call “lifestyle splurge”. If you haven’t heard of this before, let us explain.
Lifestyle splurge means that as you make more money, what once seemed like luxuries become necessities, wants rather than needs. Spending money on things you shouldn’t be however you feel you deserve it because you have worked hard. And in the end, you realise you are no better off and you have to go back to square one and start over to earn more income. You have a temporary feel good for it, however after you have spent the money, enjoyed the temporary emotion, heartache kicks in and you know it’s all back to square one. Spending extra on that weekend dinner, weekend escape, buying the things you don’t need, having the latest phone, and the list goes on.
Instead of all this now, you should do your very best to live the same way you’ve always lived. Below are your means. Then put away the extra money you’re making from your raises rather than increase your spending. Skip the escapes, educate yourself on the weekends, invest the extra 600 bucks you saved and then this money can work for you for the rest of your life to build you wealth that you can then use to enjoy those luxury escapes!
Start investing, in yourself before the markets — even a little at a time
Before you save money, you need to educate yourself. Without education and knowing how to invest, you will become like most people, having money and not knowing what to do with it, most spend it. Education comes first, and then while you’re educating yourself, start saving. Once you’ve got savings, you’ll absolutely want to invest because the time you allocated educating yourself, you saw for yourself how money can be made and you will be more happy and willing to invest your savings with confidence. Inflation will almost always outpace the interest rate that you’ll be able to get in a savings account from a Bank. You’ll be effectively be saving and losing money at the same time. This is why you should start investing as soon as you can.
Investing is not just for the Warren Buffets of the world. 10% of what you earn, either each week, fortnight or month should be put away in a separate account to use for investing while you are educating yourself. Many feel they live paycheque to paycheque and cannot put 10% aside. Believe me, you can if you want to and you should.
Saving small amounts of money is a great habit to get into and then when you have around $5,000 USD you can start to have your money work for you, for the rest of your life. It is a start, however when you see it work, you will add to it more often and you will find more money because now, you have seen it work for yourself and not listened to anyone else about it. Find the right stock market online course and invest in yourself so that the investment can return you 10 folds back for the time you put in.
Know what you’re investing for
How you invest depends on what exactly you’re investing for. You might be investing money to help your 14-year-old with his upcoming university tuition. You might want to invest money to live off when you retire in 30 years or so. The time horizons on each of these investments are very different. Because you’ll need access to some of them sooner than others. Those with shorter horizons should invest more conservatively. Those investing money they don’t need for a long time can choose riskier investments. Most people right now are asset rich, cash flow poor. Knowing that there is a strategy out there that can generate cash flow for you is critical in this day and age. Being able to generate cash flow now to live off and building more cash flow for your retirement is paramount. Imagine being in control of your financial future, where money is no longer a limitation, but a potent tool you wield with power and impact. Fokas Beyond Covered Calls can give you that is the right stock market education online.
Understand the risk you are taking
Before deciding where to invest, you’ll need to first assess your personal risk tolerance. This is a fancy way of saying how much of your investment you can really afford to lose. If you need money for next month’s rent, you have a very low-risk tolerance. If your life wouldn’t be materially affected in any way, if rather than investing money, you set fire to it, your risk tolerance is through the roof. Knowing what investment strategies are out there online and picking the right one that will generate your income on a monthly basis and also protect your capital is important. Imagine you were able to protect most of your capital when you enter the market and still earn a return on investment. To a lot of people that sounds unheard of, however, banks have been doing it for over 4 decades. This is why everyone says banks always make money. They know how to invest where most people don’t. If you were given the right education with the correct stock market education, you too, like tens of thousands of others around the world could be doing the same thing. Understanding the risk before you invest makes you a better long term investor, without emotions. Covered Calls can give you that.
Diversify your investments
Rather than zero in on one stock, you think will perform well, diversify your capital into different companies when it comes to investing in the stock market. By doing this, if one company at the moment isn’t performing well, at least your money is spread out to other companies. Being able to use the stock market to your advantage after you have educated yourself, will benefit you in not only picking the right stocks with the right checklist and criteria, having these stocks generate your income and have your money protected, makes for a long term, solid investor.
Invest for the long-term
If you can, invest for the long term. Many studies demonstrate that investors who are in it for the long run being more than 10 years outperform other investors. Having a long term mindset with monthly income coming in from the stock market will help you achieve your goals sooner and give you the freedom to choose lifestyle overwork. Also knowing that you can protect your capital when you enter the market will put you up there with the elite investors. You will feel confident and grateful you educated yourself with the right stock market course. Risk never disappears, but you might say it mellows with age.
If you can put money away for a long time period and not touch it while it generates you cash flow, then you can afford to have investments that are typically more susceptible to rising and falling. Your portfolio can contain a mix of stocks and equities and use them to your advantage. Long term investing for monthly cash flow.
Regardless of how long you’re investing, diversifying your portfolio is an absolute must. One thing is also for sure — if you invest for a long time period you benefit from the power of compounding. This is the process by which the money you make on a monthly basis from Covered Calls with Fokas Beyond compounds and earns more income on itself over time. The earlier you start investing, the more you benefit from compounding over time. The sooner you can look to live on your own terms.
Watch out for high fees and no fees
Fees are the money you put into someone’s pocket rather than your own. Regardless of how you invest, you’re going to pay fees or commissions to brokers. What you need to watch out for is high fees and also no fees. They’ll have a significant drag on your returns. You need to consider the value you’re getting in exchange for paying fees. Brokers with zero brokerage make money on you elsewhere. Most times on the purchase and sale of the stocks and equities. Instead of these brokers getting you in at the best price, they will inflate the price to take their cut while charging you zero brokerage.
It’s well worth paying a fee for an online platform and service that will give you the best return on your investment and get you in at the right time.
Consider how much time you can put into investing
Managing your investments can take a little time or a long time. Before you invest a dollar consider how much time you can put into managing your investments. Doing it yourself in this day and age is something to seriously consider. If fund managers really knew how to make money, they wouldn’t be in a J.O.B in my opinion. In saying this, A DIY approach will require making regular trades and ensuring your investments stay on track. However, you are now in control of your financial destiny. Finding a team that has the right coaching and mentoring is critical in your financial success. In addition, the right online stock education course will get you there. Imagine having a system in place that requires an average of 60 minutes a month that you need to allocate and you can earn a monthly income and have your money protected between 90% – 99% for the month. Fokas Beyond Covered Calls can.
“I always carefully consider how much time making an investment will take. Some investments will require much more work than others, and I don’t want to spend too much of my precious time on investing.”
Make an investing plan and stick to it
One of the biggest reasons many investors have low returns and make the wrong decisions is they don’t have a plan. They base their decisions on a short term, recent performance and they don’t look at long term performance, education and return. Many investors tend to buy things that have appreciated in value and sell things that have declined in value. When you’re investing long term, it’s not about buying and selling, it’s about using the investment to your advantage and earns income from the investment no matter what the market is doing. Being able to generate cash flow without the need for the market to move, or whether it is down, is an investment to discover. Once you have educated yourself and you have seen it work, having a plan and sticking to it will allow you to become successful.
You should create a plan you will think will help you reach your goals over the time period you have to invest. Don’t stop investing because of bad performance. Stick to your plan without buying or selling based on your opinion of what will happen in the near future. Long term plan will allow you to push through markets up and down to achieve the end result, financial success.
Having the right Education
One of the most critical components to any investment in education. When you have the right education, along with the best coaching and mentoring that has proven practical principles that you can follow, this will ultimately be the moment you change your life forever. With over 10,000 active students around the world implementing the Fokas Beyond Covered Call online course, and the team of coaches guiding them through the education every step of the way, the results my members achieve every month, is unheard of. That is because these people have stepped up, they believed in themselves, they took action and they achieved something they once thought were impossible. Their trading statements tell the story as do their testimonials every single month when they win Investor of the Month.
Welcome to Fokas Beyond!
Attend the “Smart Money” Live Online Masterclass for Free!
