Did you know that with simple smart decision making tactics you can adjust bad spending habits and transform them into investing opportunities. For example instead of getting another video game which retails for up to $60 dollars, you could borrow it first to see if you really like it and then you can invest that money for the time being while you decide. Where would this smart investor place the money? Sixty bucks can buy about 4 shares of vanguard’s international stock index fund(VGTSX). These index funds have a risk rating between 1-5 and are already diversified for added safety, by pooling together all the funds invested into a variety of stocks and other funds.
Another option for the $60 dollars is about 6 shares of Ford Stock. The current price of the stock is about $9.30 a share about 4 years ago the stock was at it’s lowest levels of 2 dollars and this was the perfect time to place a trade. Many analyst predict the stock is still cheap and will only go up from here. The current dividend yield on this stock is about 2.14%, and the more shares you own the greater the dividend payout you will receive.
It all boils down to this do you want to be a owner of money producing stocks and index funds or would you rather have something that collects dust in your house that after a few days you basically lose interest in it? So if you decide to change bad habits with good ones, your financial future will make a drastic turn for the better. Asset accumulation is the game the wealthy play in order to become wealthier. Anyone can do it, it just takes effort to understand and actually drop those dimes on something worthwhile that will possibly grow in the future as compared to a thing that will never ever grow or give you returns in you’re entire lifetime. I know my readers will make great decisions with their financial futures by taking surplus money and putting it to work to make more dollars on top of dollars. Also if you make the investing consistent and a part of your monthly routine you will be ahead of the majority of people.
Below is a quick run down of several scenarios between buying as compared to investing options for most people.
Buying Vs. Investing
A pair of Nike sneakers- $90 = 6 Shares of (VGTSX)
An Ipad Tablet- $500 = 53 Shares of Ford Stock
A Video Game -$60= 2 Shares of AT&T or CBS Stock
New Sunglasses- $120= 4 Shares of PSE&G Stock
RichUncle EL
FYI: Please do some research before buying stocks as they always have risk attached to them. The stocks I mentioned above were selected to show an investing example please take the time to buy those stocks that are right for you.
