What Most People Don’t Do
“The share of Americans who own stocks has never been so high.
About 58% of U.S. households owned stocks in 2022, according to the Federal Reserve’s survey of consumer finances released in fall 2023.
That is up from 53% in 2019 and marks the highest household stock-ownership rate recorded in the triennial survey (Source: WSJ).”
Although over 50% of Americans own stock, most are still broke and barely have anything in their savings.
Take a look at the following information…
Over 71% of people have $5000 or less in their savings, which means though people might buy a stock here or there, they’re not keeping (holding) their stocks, not investing in the right stocks, or not consistently investing in the markets.
Most people don’t consistently save and invest their money.
What Most People Do Instead
“A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year.
In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses (Source: Forbes).
Living above your means is common practice, which is why most people are in debt. It’s easy to continue living above your means, too, in the world of financing.
You can finance your car with a car note.
You can finance your life with credit cards.
You can finance your home with a mortgage.
You can finance your education with student loans.
Most live above their means.
What Amount Do I Need To Invest?
But enough about what most people do and don’t do.
According to Dakota Robertson, investing $10 daily will make you wealthier than 90% of people.
$10 a day equals a monthly savings total of $280–$310.
Remember, at least 71% of people have less than $5000 in their savings.
You will have more than this within less than two years of saving $10/day (without including compound interest).
The goal is consistency. The longer you continue investing, the more wealth you inevitably build.
How To Invest Wisely
I didn’t know sh*t about investing until I started self-educating about personal finance through books and podcasts.
To this day, I still invest my time in learning about personal finance because you can never have too much knowledge.
How do you invest wisely?
Why, self-education, of course.
You don’t need a mathematics, statistics, or economics degree. You just need to crack open a book, listen to a podcast, attend a workshop, or watch a video and continue learning through whatever means resonates with your brain.
A Quick Spiel About Financial Advisors
Relying on a financial advisor to make investment decisions for you is a big no-no.
It would be best if you only considered a financial advisor after you know what you’re doing.
Always know what is happening with your money, and if you decide to get a financial advisor, ensure it’s a collaboration instead of one person (the financial advisor) making all of the decisions.
Thank you for reading, and thank you, Uni, for this article idea. | destinyh.com
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.