When people think about building wealth, stock investing often comes to mind. But it doesn't have to be some complex, high-stakes game reserved for Wall Street pros. For those looking into investing as a side hustle, dividend stocks offer a surprisingly straightforward path to earn passive income.
It’s a common myth that wealthy people don’t need to budget. From my own experience and from observing my mentors, the opposite is true. Those who were born into wealth budget to preserve it for future generations—to keep the family vacation home and ensure their kids get the best education. Those who built their wealth from the ground up budget because it’s the very tool that got them where they are, and it’s what will keep them there. The only wealthy people who don’t budget are often the ones who won’t be wealthy for long.
When it comes to building wealth, most people think of the traditional buy-and-hold method for stocks. You invest your money and hope for the best over the long run. But what if you could achieve better returns with less capital at risk? This is where understanding some options trading basics can completely change your perspective on stock market investing. Instead of needing thousands of dollars to buy shares, you could use a fraction of that to purchase a call option and potentially double or triple your investment, turning small sums into significant returns.
Every day, the financial world bombards you with reasons to actively trade stocks. You’re told that with the right mutual fund or the cleverest strategy, you can beat the market. As Gregory Baer and Gary Gensler put it, investors are pushed into high-cost funds and portfolio churning because they’re told to do so, explicitly or implicitly, by the very media that claims to inform them. But what if the secret to successful isn't about being more active, but less?
It’s time to move from theory to practice. You can know all about passive asset-class investing, but the real work begins now. Implementing a winning strategy starts with a single, foundational document: an investment policy statement.
My wife is a fantastic gardener. Every season, she’s out there tending to her plants with incredible discipline. If she skipped these essential tasks, weeds would take over, bugs would feast on the leaves, and the whole garden would fail to thrive. A garden doesn’t just grow on its own; it requires regular care to produce the results she wants.
When you're exploring ways to grow your money with a hands-off approach, you're essentially looking for a passive strategy. This type of investing is popular for good reason, but it's important for anyone to understand the tools available. Generally, you'll come across three main vehicles to build your portfolio and generate : index funds, passive asset-class funds, and exchange-traded funds (ETFs). Let's break down what each one is and how they differ.
Picture this: It’s the Super Bowl, and you’re the head coach. Your team is down 17-14 with the ball on the one-yard line. It’s fourth down, one second on the clock. Do you kick the easy field goal and force overtime, or do you go for the touchdown and the win? There’s no single right answer. Your decision depends on your confidence in your offense, the state of your defense, and maybe just your personality. Are you a risk-taker, or do you play it safe?
When you first get into , it’s easy to focus on the obvious things: the quality of a company, its size, and its value. But there’s another powerful force at play that many people overlook: volatility. Understanding how it works is essential, because if you don’t learn to control its impact, it can quietly eat away at your returns.