If you haven’t already, subscribe to our newsletter here to get our articles directly to your inbox and follow us on Twitter, Instagram, and YouTube! In our Educational Series we will be taking a deep dive into different ways to invest your money in hopes that one or multiple of these methods strikes you as interesting and encourages you to invest your money to grow your wealth. If you enjoy our content, please share it with a friends and family to help us grow!
What is Investing?
The true definition of investing is allocating resources, for our purposes money, with the expectation of generating an income or profit from the allocation. Despite what many believe, there are many ways to invest. We’ve grouped the primary investment methods into four categories: stocks, real estate, cryptocurrencies, and alternative assets. We have a video breaking down this topic on our YouTube, you can check it out here.
Why Should I Invest?
You work hard for your money and you should want your money to work hard for you! The absolute best savings accounts are considered high-yield and offer up to 0.5% annual percentage yield (APY), which is the amount you earn by simply holding your money in that savings account. Earning money while your money passively sits in a savings account sounds great, right? Unfortunately, it’s not so great. Average yearly inflation is ~3% in the United States. If your return on investment - the amount that you earn as a percent of your initial investment - does not exceed the inflation rate, you’re technically losing buying power. At the current rates of a savings account, you are LOSING buying power by having your money simply sit in the account. Inflation rate in 2021 is currently at 5.35%, which is worse (meaning higher) than the 2 to 3% annual average. That means it’s more important than ever to invest your hard earned money! Asset investing - whether stocks, cryptocurrencies, precious metals, real estate, or any other alternative - offer opportunities to not only maintain your buying power in the face of inflation, but to actually increase your net worth! We also have a video on our YouTube breaking down this topic, you can check it out here.
How can I get started in investing?
There are plenty of ways to invest, but first you must determine what you’d like to invest in. In the following weeks we will be diving into each of the four categories mentioned above: Stocks, Real Estate, Cryptocurrencies, and Alternative Assets. With this series we hope to provide basic introductions to each of these investment methods to help you determine how you’d like to invest your money. We will not recommend any one investment over the others - all investors are unique and have different levels of risk tolerance, zones of competency, and financial end goals. We hope you find these letters useful and don’t hesitate to reach out with any questions or suggestions!
Disclosure:The article was written by Daniel Kuhman and Brandon Keys, and it expresses the author's own opinions. The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock, asset, or cryptocurrency. Brandon and Daniel are not financial advisors. We encourage all readers to do further research and do your own due diligence before making any investments.