If you are like me, at some point in life you will start thinking about making your money work for you. It is a scary step that I think we all have to take if we want to become financially free.
About 2 years ago I started adding to a deposit account 1000 euro/month and I did that for 12 months, I didn’t really care about the interest I just wanted to have some money a side that will be safe and grow with time. When I actually checked by balance at the end of the year I realized that I’ve got like 100 euro in interest, wow 12 months of not using that money in any other way and I received 1% interest.
I was doing trading on different platforms for about 8 years, however I was mostly playing trying to understand how it works so my investment was minimal (around 200 euro) and of course made use of the Virtual Trading for which I didn’t need any money. Last year 2020, I think it was May when I decided to start looking into trading more serious and I started with a 1000 euro deposit.
While reading on the internet how to start and how to stay safe, most people will recommend to try index funds like S&P500, for me it didn’t look that safe, I mean every couple of years if not every second year the Index drops:
I’m not saying is bad, don’t get me wrong. I’m actually one of that people that would recommend Index Funds for newbie’s, however I always ask them to start doing their own research. You don’t have to do technical research on stocks when in invest long term, you need to understand and believe in the vision of the company.
Index Funds 20% of the budget
Index funds are basically a basket of stocks that imitates the composition and performance of a stock market index such as the S&P 500 or Russell 2000.
The S&P 500 is a member of a set of indexes created by the Standard & Poor’s company. The Standard & Poor’s set of indexes are like the Russell index family in that both are investable, market-capitalization-weighted indexes. However, the two large differences between the S&P and Russel families of indexes.
- Standard & Poor’s chooses constituent companies via a committee, while Russell indexes use a formula to choose stocks to include.
- There is no name overlap within S&P style indices (growth versus value), while Russell indexes will include the same company in both the “value” and “growth” style indexes.
S&P 500 vs. Vanguard 500 Fund
The Vanguard 500 Index Fund is tracking the price and yield performance of the S&P 500 Index by investing its total net assets in the stocks comprising the index and holding each component with approximately the same weight as the S&P index. In this way, the fund barely deviates from the S&P, which it is designed to mimic.
Dividend Stocks 40% of the budget
Dividend stocks are companies that pay out a portion of their earnings to the shareholders on a regular basis. These companies usually are well established, with stable earnings and a long track record of distributing some of those earnings back to shareholders. Most dividends are paid out on a quarterly basis, but some are paid out monthly, annually, or even once in the form of a special dividend. While dividend stocks are known for the regularity of their dividend payments, in difficult economic times even those dividends may be cut in order to preserve cash.
- Forward Dividend Yield: 6.24%
- Price: $12.18
- Market Cap: $2.1 billion
Brandywine Realty Trust is a self-administered and self-managed REIT that owns, leases, develops, and manages primarily suburban office properties. It also has an ownership interest in and operates a commercial real estate management services company. On February 24, Brandywine announced that its board of trustees had declared a quarterly cash dividend of $0.19 per common share. The dividend is payable on April 21, 2021 to holders of record as of April 7, 2021.2
- Forward Dividend Yield: 6.77%
- Price: $123.99
- Market Cap: $2.08 trillion
Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players. The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications. The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa. The Greater China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments. Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watch OS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.
- Forward Dividend Yield: 4.81%
- Price: $110.26
- Market Cap: $194.7 billions
AbbVie, Inc. is a research-based biopharmaceutical company, which engages in the development and sale of pharmaceutical products. It focuses on treating conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease; metabolic diseases, comprising thyroid disease and complications associated with cystic fibrosis; pain associated with endometriosis; and other serious health conditions. The company was founded on October 19, 2011 and is headquartered in North Chicago, IL.
- Forward Dividend Yield: 0.95%
- Price: $234.81
- Market Cap: $1.77 trillions
Microsoft Corporation is a technology company. The Company develops, licenses, and supports a range of software products, services and devices. The Company’s segments include Productivity and Business Processes, Intelligent Cloud and More Personal Computing. The Company’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games, and training and certification of computer system integrators and developers. It also designs, manufactures, and sells devices, including personal computers (PCs), tablets, gaming and entertainment consoles, phones, other intelligent devices, and related accessories, that integrate with its cloud-based offerings. It offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and it provides solution support and consulting services.
- Forward Dividend Yield: 4.52%
- Price: $155.3
- Market Cap: $474 billions
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services. It operates in four segments, as well as a Corporate segment. Its segments are Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset Management. The Consumer & Community Banking segment offers services to consumers and businesses through bank branches, automatic teller machines (ATMs), online, mobile and telephone banking. The Corporate & Investment Bank segment, comprising Banking and Markets & Investor Services, offers investment banking, market-making, prime brokerage, and treasury and securities products and services to corporations, investors, financial institutions, and government and municipal entities. The Commercial Banking segment provides financial solutions, including lending, treasury services, investment banking and asset management. The Asset Management segment comprises investment and wealth management.
Trending Stocks 30% of the budget
Ok, now we got to the part where we talk about the investments that might fluctuate in short term, however in the long term will bring the most growth. Remember that you are investing not trading, when you invest you always look at 5-10 years ahead while if you want to trend you will be more active in terms of buying and selling which will mean that you have to spend more time researching this stocks and do some technical analysis.
NIO, Inc. (China) is a holding company, which engages in the design, manufacture, and sale of electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Its products include EP9 supercar and ES8 7-seater SUV. The company provides users with home charging, and power express valet service and other power solutions including access to public charging, access to power mobile charging trucks, and battery swapping. It also offers other value-added services such as service package, battery payment arrangement, and vehicle financing and license plate registration. The company was founded by Li Bin and Qin Li Hong in November 2014 and is headquartered in Jiading, China.
Tencent Music Entertainment Group engages in the provision of online music entertainment platform. Its platform comprises of online music, online karaoke, and music-centric live streaming products. The company was founded by Jia Xin Peng on June 6, 2012 and is headquartered in Beijing, China.
Tesla, Inc (formerly Tesla Motors, Inc) designs, develops, manufactures and sells fully electric vehicles, and energy storage systems, as well as installs, operates and maintains solar and energy storage products. The Company operates through two segments: Automotive, and Energy generation and storage. The Automotive segment includes the design, development, manufacturing, and sales of electric vehicles. The Energy generation and storage segment includes the design, manufacture, installation, and sale or lease of stationary energy storage products and solar energy systems to residential and commercial customers, or sale of electricity generated by its solar energy systems to customers. The Company produces and distributes two fully electric vehicles, the Model S sedan and the Model X sport utility vehicle (SUV). It also offers Model 3, a sedan designed for the mass market. It develops energy storage products for use in homes, commercial facilities and utility sites.
Crypto Currency 10% of the budget
This one although it has the lowest % of the investment can bring you the most profit in the long term. Crypto will never go away, more and more financial institutions are adopting blockchain technology and even if they will never fully accept some of the crypto coins they will build their own.
This is a long term play as well, so you don’t need to be stressed by the ups and downs that happen, think of it as a 2-5 years investment.
For Crypto Investing I use:
- Binance (Best Staking earnings)
- KuCoin (AI driven Crypto Trading Bot)
- Coinbase (Simple Crypto Platform for beginners)
Cardano is a proof-of-stake blockchain platform: the first to be founded on peer-reviewed research and developed through evidence-based methods. It combines pioneering technologies to provide unparalleled security and sustainability to decentralized applications, systems, and societies.
Binance Coin is the crypto-coin issued by Binance exchange, and trades with the BNB symbol. Binance coin runs on the Ethereum blockchain with ERC 20 standard, and has a strict limit of maximum 200 million BNB tokens.
Ethereum is a technology that’s home to digital money, global payments, and applications. The community has built a booming digital economy, bold new ways for creators to earn online, and so much more. It’s open to everyone, wherever you are in the world – all you need is the internet.
TRON has established dual headquarters in the Americas and Asia Pacific with the establishment of more overseas offices in preparation and our team in rapid expansion. We offer employees opportunities to go on international business trips and to work on overseas posts. With TRON, you’ll be exposed to the most cutting-edge blockchain technology.
Polkadot will enable a completely decentralized web where users are in control.
Polkadot is built to connect private and consortium chains, public and permissionless networks, oracles, and future technologies that are yet to be created. Polkadot facilitates an internet where independent blockchains can exchange information and transactions in a trustless way via the Polkadot relay chain.
Polkadot makes it easier than ever to create and connect decentralized applications, services, and institutions. By empowering innovators to build better solutions, we seek to free society from its reliance on a broken web where its large institutions can’t violate our trust.
Now that we got to 100% of the budget I think it is time to stop and let you do some more research. Remember I’m not a Financial Advisor, I’m only sharing my experience and all the information in this article is based on my research and investments.
Investing your first $1,000 is an exciting opportunity. Although investing may feel complicated at first, it’s easier than you think to diversify and keep your risk low.
- Investing in the financial markets involves a risk of loss.
- You should only invest the money you can afford to lose.
Try a Compete Risk Free with $100,000 in Virtual Cash
Test your strategies with this Virtual Cash Account. Submit trades in a virtual environment before you start risking your own money. Practice trading so that when you’re ready to enter the real market, you’ve had the practice you need.