The 1 Stock Everyone Should Have
Financial Foundations
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Financial Foundations •
Empowering Our Financial Wellness: Choosing a Foundational Stock Everyone Should Have
Recipe: Financial Foundations for Investing
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If you’re looking to get started with investing, or looking for foundational stocks to build your portfolio, you’ll enjoy this series where we share simple ‘ingredients’ to help you build wealth, from which accounts to open, to tax, credit and early retirement shortcuts, and today, what type of stocks to buy. These are taken and adapted from our bootcamp and book, SIMPLE WEALTH RECIPES.
In this short article, we share a sample ingredient from our Simple Wealth Recipe to make your dough grow to millions. Today's ingredient and tiny tip: Investing in the Stock Market (Part 1).
We know investing in the stock market is a proven way to build wealth. We also know most people who don't invest, think they have to have a ton of money to get started or don't know where to start, or feel it's just too complicated. This may sound familiar to you; we hear it all of the time.
Whether you're brand new to investing, or you've been investing in the stock market for a while, there are certain stocks that can be absolutely essential to having a solid, foundational portfolio.
Today, we’re sharing a stock we like that everyone should have: the Vanguard S&P 500 ETF aka $VOO.
Let’s talk about why:
1. It’s very beginner friendly: It's easy to buy and sell in a regular brokerage account.
2. It’s an ETF (exchange traded fund): It's like a basket that holds a bunch of different stocks in one. Instead of buying and researching individual stocks one at a time, we can buy a bundle of stocks all at once, an ETF
3. It follows an entire stock index, the S&P 500: the S&P 500 represents 500 of the largest publicly-traded companies in America. Buying one share of this ETF means you're buying into 500 companies at once. Companies like Microsoft, Apple, Google, Visa, Disney, Procter and Gamble, JP Morgan Chase, etc. – All companies you've probably heard of, and it has had a historically positive return on average over time.
4. We have instant portfolio diversification: from investing in 500 of the largest companies at once.
Why is This a Key Ingredient in our Simple Wealth Recipe?
Consistency goes a long way, especially in the stock market – even in small doses.
What's the last thing you spent around $8 on? A cheeseburger or something like that?
DID YOU KNOW: $8 a day invested in the S&P 500 for 22 years, and you'd have $250,000, a quarter of a million dollars.
Today's Tiny To Do:
Think about the last time you spent $8.
Because we cannot even get a combo meal at a fast-food restaurant for that much anymore.
As you go through your day today, and you see something that costs $8 — a cheeseburger, a latte, a couple gallons of gas, whatever it may be — think about incorporating the habit of investing into your life.
We're not saying not to have nice things – the lattes, cheeseburgers, etc. – because we thoroughly believe in enjoying ourselves blissfully. We just want you to start thinking about wealth differently, tangibly, and understand that we do not have to have a ton of money to invest. But we do need to be consistent.
(This is meant for educational purposes and it's not individual, investment, tax, or legal advice. All investment involves risk.)
We do know that investing in stocks is one of those critical ingredients to help our money grow. Remember: building wealth does not have to be complicated or confusing. You just need the right mix of ingredients for a simple wealth recipe to make your money and wealth grow. We're here to help. We’re rooting for you.
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The Simple Steps to Invest and Build Wealth
To learn more about this and other simple, actionable ways to make your dough grow to millions, consider reading our book or taking our Bootcamp. Sign up to be the first to be notified of the next drop >
© 2024 | Adapted from our bootcamp & published book, Simple Wealth Recipes, and Framework, The Simplest Steps to Wealth
To get started with stock investing and make your first informed trades, you can sign up for our upcoming virtual bootcamp, The Simplest Way to Get Started with Stock Investing Today 101, part of our Simple Wealth Recipes bootcamp.
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Next one: coming at the end of April; sign up to get on the list while supplies last
Building wealth doesn’t have to be
complicated or confusing,
you just need the right mix of ingredients
for a simple wealth recipe
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