Prepare for the future - Save and Invest in the stock market

Well, everyone of us will come into a point in time that we need to save.

Why?

Let say for example you are in High School right now, tendency is that you have a girlfriend/boyfriend or you have plans of having one, you fall in love for sure. And of course if you get into the intimacy of it, 5 - 7 years from that time you would marry that man/woman. You will have children. These children will grow and go to college. So you need to prepare for the time that you will marry that special someone, and as a sign of independence and maturity specially if you are the man you should be shouldering the expenses. And when you are in marriage you will be thinking about your son/daughter's future expenses as well as the day to day expenses in getting into that future.

With that in mind you should build the habit of saving, and that is setting aside a portion of your income (allowances/salary/unexpected money/profit) for the future consumption. You will put these on a piggy bank. Level up on that. You will not help the economy, and the burden would go back to you in cycle. Put it in the bank, but you know, the interest in the bank is a mustard seed and inflation bird will just eat it.

So what is this inflation? Well, inflation is like you have 1000 money right now and these could bought 100 canned goods. But 5 - 10 years from now, that same 1000 money could just buy 50 canned goods(same brand) because that canned goods' price increased. Why did the price of canned goods increased? Well, people are growing in number, therefore demand is growing, price must increase to cater the ever changing need for company growth(more wage, additional factory etc...). So if your money will not grow ahead of these growth, tendency is that your savings will not save you.

So it is a must that savings must not be eaten by inflation, and to do this we must Invest in the Stock Market.
Ok, so what is this?

I have found a video in youtube that i think nailed the most important explanation about the stock market. It is a 5 part online seminar video. I just choose to embed these two parts because it contained the most important overview. The concept is applicable to every country. Here it is:

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So feel free to make any comments below.

 

First off, I nearly "Spammed" this because I thought its a spambot LOL.

Second, sadly it stocks/shares aren't as simple as that, there are many factors and trends that have to be taken in account before you buy shares in a company If you want to be a stockbroker then I'd suggest taking a few Economics and Accounting lessons at least There's a lot of risk in trading and buying shares, I own a few shares in a British Telecommunication group called "BT" and a few shares in Tesco since their stocks plummeted because of their debts and because a monkey stole some money from them lol. Will probably be a few decades before I see my money double.

 

I started entering the stock market way back 2012. My first trades was a disaster because i trade out of excitement and i think too much about trends and those many factors. So i left, but i leave the smallest share of Jollibe Foods Corporation (JFC) and Banco De Oro (BDO) in my porfolio. I came back after years and i realized how it was. It's just like you buy, HOLD, and sell. People worry too much about the risks because they are seeing red figures and negative returns in percentage but they forgot it is just the paper loss. You will actually earn, and i earned dividends in disguise that was more than what bank interest offered for the smallest share i have for the smallest peso i put in the market. And right now i was able to sell it to make the realization of earnings come true, and i earned more than what is suppose to be nothing at all. But of course, it would probably take decades to make it double but in time as you save the money you will realize that you saved something and it's growing. So if you could have started early with this information in mind then it would be better. So i am sharing this information as part of building the intelligence of people with their future dealings.

 

While the stock market is fine and dandy. Yes I do hold investments and rather not get into a discussion on how those are determined, or grow, split, re-invested as you can play the market quite a few ways. I have some that are with my broker set to sell at a certain point, though not all maybe 50% of an entire purchase. Then that money is held, the stock drops and again at a certain point re-purchased at a lower value. While you could say value was lost somewhere, in truth the return ends up being higher.

Anyway. A very simple way to start savings for the future which will end up being much more of a secured form.
Most high school people have part time positions at anywhere they can. Typical earnings in the US are anywhere on average from 130-200$ around here where I live.
This is based on minimum wage and a 20 hour week after taxes. Pay schedules generally weekly, but some bi-weekly.

Each week = 130
Bi-Weekly = 260

Lets just take the low end for simplicity sake and weekly for immediate impact factor.
From that 130 a week, take 50 dollars and simply, put it into a savings account. Now, bank rates on savings accounts are somewhat low. Around .01% - .02% (Bank of America is .01%) That means per dollar per year, you will earn 1 cent. Sounds crappy huh?

So, 50 per week, or 200 a month, or 2400 a year. .01% suddenly becomes 136.51$
That is at a rate of 200 a month, of course these numbers are not 100% exact, and the earnings on the account will most likely be lower.
However, now you have ~2536.51 sitting in a savings account.

You turn around, and roll that into a 6 month CD (Certificate of Deposit) using BoA as a standard again, and going lowest possible numbers.
In a Standard CD (.03 - .15% deposit balance dependent we will use .03%) requires 1,000 to be invested at minimum for a 28 day term.
We will earn 76.10 (rounded up) in 28 days, less than a month, now we do this again for 11 months of standard term 28 day automatically renewing CD. Why 11 months? I'll explain after we get the somewhere around accurate numbers down.

After the 11 months? Somewhere around 3408.82.
We skip the 12th months because at that end of the 11th 28 day term, the CD is closed and rolled into our savings account at 11 months (2313.38)
Giving us a total of 5722.20 in two years, our investment of 4800, has earned now 922.20. Yes, it is not a fast process.
Though now we do this again, and take our 5722.20 and do t he CD investment again for the same 28day 11months (keeping the rate the same at .03)

Now, this is our third year. how much do we have?
$10328.93 with the addition of the third years saving account.
Now, to the fourth and final year!

A total of? 16418.90 or around it somewhere.
Initial cost of savings? 50 dollars a week, in which. We invested 10146.04$ into, for a return of? 6272.86$ on interest alone. Yes, it took 4 years to get, however. If you keep playing with the deposit certificates? You can slowly get to a point where they will become more valuable than naught. I have a few CD's that earn quite a bit per year, and that is my living money.

Of course, this is basically speculative math, and the numbers are most likely not the most accurate but this is with in a ballpark of 1-2,000 dollars on the values. I could go through my banking statements to get more accurate if I really cared to but no not going to take that much time.

It is quite easy, to generate revenue from the banking industry alone if you actually take the time to do some calculations and the risk is much lower than the stock market investments that can go up and down. I would much rather urge people to look into the banks, and how to use interest rates, savings accounts, and certificate of deposits (CDs) to their advantage before they go out into the world of investments.

There does come a point, where the banking world will make you more money than you can with the stock market. Best part? At least in the US, bank accounts are insured up till a certain point so you are 100% promised to be paid at least that much if something were to happen to the bank and it's funding.

Anyway! Regardless of where you choose to keep your money or prospective gains? It is best to look into the risk and rewards. Does if you are starting to work for a high yield and earning on your money at a younger age it make sense to get into stocks? I would say no. I started and still do most of my earning in the banking world, as that is the simplest and most secure. It is just playing with the numbers and rates provided to get the best value on interest return.

 

If i convert this in our peso this is actually way higher than what most people earn here in the Philippines. Well actually this is just what i earn weekly in my job. I really hope at some point in time our country could be at this level. Since election is near, i hope this would come to reality by our next president.

Oh i got 2 - 0 now . Anyways, this only showed that we have a high caliber staff in GamezAion. It it nice to know that the members here are financially and economically adept.

Calling out the stock market enthusiast out there, share some experience.

 

Don't do that stock market crap. Do what I do and put all your money and assets into gold. And then go our and bury that gold. I have several dozen stashes of gold all around the area so whenever something comes up and I need some money, I just grab a shovel, hit someone over the head with it, and take their money.

The gold is for my retirement, I'm not digging it up anytime soon.

 

or you can sell drugs as quick as you can until they decide to make them legal and you'll be able to buy them at the cheesecake shop.

 

Drugs and cheesecake are a good combination.

 

web chat= rich fast!! dont even need High School, just have to be a gurl, or u can try ghei style!

 

Stock is love stock is life

 

I am sexxay gurl gib monie plzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

 

NO more places for gurlz! try ghei !!