Learn how to pay off debt and invest in index funds
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Learn how to pay off debt and invest in index funds
Signed in as:
filler@godaddy.com
You can’t become rich with the sweat of your own labor.
There aren’t enough hours in the day for you to work.
We each only have 24 hours a day. We all get the same amount of time per day.
Why is it that some people can earn so much more than others?
I used to think how cool it would be if I didn’t need to sleep. I could work two full-time jobs and make double the salary.
If I didn’t need sleep, I’m not sure that working 16-20 hours a day is how I would want to spend my time, but when I was young and broke, I thought it would have helped me out a lot.
The thing is, we all need sleep. We all need time for relaxation. We all need time to be social. There are only so many hours we have to work and to earn money by our own labor.
Because of this, we need to figure out other ways to make money that don’t depend on our own labor – what is generally referred to as passive income.
Passive income is the money you make in your sleep.
Think about having rental income or making interest off your money at the bank. Other than a few calls, you usually don’t need to work on these investments in order to generate income.
This is the key to accumulating real wealth.
In essence, your money is working for you when you invest it into appreciating assets.
Index funds are batches of stocks that mimic an index, such as the S&P 500 and the NASDAQ.
Index funds have historically performed well and are inexpensive.
Index funds are purchased via mutual fund and ETFs (exchange-traded funds).
Some companies pay dividends to their shareholders as an incentive to own their stock.
The dividend yield is the return you earn for holding the stock.
Dividends are paid quarterly, monthly, and annually.
Single stock values are generally more volatile than index funds, meaning they are riskier.
When you invest in a single stock, you're putting trust in that company.
When investing in the stock market, it's best to invest with a long-term mindset.
Real estate has steadily appreciated over the long-run.
Owning real estate and renting to others can be a profitable investment.
Real estate requires more hands-on involvement than most stock investing.
Finding the ugliest house on the block and renovating it is something I love to do.
Flipping real estate successfully is heavily influenced by finding the right deal.
In any real estate deal, know your numbers before you put in the first offer.
There are an infinite number of opportunities, from franchises to dental offices or garages.
You choose whether you are an owner-operator or you are an owner who hires a manager.
You choose how involved you will be, but many small businesses require time upfront.
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