Make Your Money Work For You With Your Affiliate Marketing Profits
Some members are successfully earning a regular stream of income through your affiliate marketing business. Others are earning an income sporadically. Most of us are still developing our businesses that will start to earn an income in the future.
This article is intended to give some ideas how to safely invest some of that income.
But first a disclaimer. I am not trained or qualified to give investment advice. Investing of any kind involves risk. A sound approach is to only invest money that if you lost it, your livelihood would not he ruined. The following suggestions are my opinions only. Past performance is no guarantee of future gains.
Historical Performance Of Popular Companies
If you invested $1000 10 years ago, the following table shows you what it would be worth today if you didn't touch it, or add to it over that period of time.
- Bank savings account with a 0.1% annual return: $1,011.00
- S&P Index Fund: $3,557
- CocaCola: $2,392
- Walmart: $3,770
- McDonalds: $4,016
- Walt Disney: $4,220
- Alphabet (Google): $5,600
- Starbux: $7,877
- Nike: $8,250
- Microsoft: $10,672
- Apple: $12,961
- Amazon: $20.395
- Netflix: $22,773
Now for the Big Enchilada Bitcoin, $1000 invested 10 years ago would be worth $287,000,000 today!
What is my point in sharing this past information with you? Several actually.
- Use bank savings to keep emergency funds only
- Invest in stocks for the long term
- Pick companies you are familiar with and know are solid
- Use Dollar Averaging To Buy Stocks
- Devote a small amount of your investing into speculative accounts like Cryptocurrencies
You don't need to have $1000 to start investing. Most investment companies like Fidelity, Charles Schawb and Robin Hood will allow you to purchase tractional shares for as little as $1. They also do not charge fees to buy and sell stocks.
I'd like to go into a bit more detail on the above.
Until you have a sufficient amount saved for emergencies, do not go further. There are many guides on this matter. Such as having enough funds to pay for at least one month's of bills and living expenses if your income stops. Another is to cover one or two emergency requirements like to pay for major home or car expenses.
Interest rates are so low these days. The days when you could rely on savings account to give you 5% annual rates of return have long since gone. It's almost like saving money in a Piggy Bank!
In fact, this is a great time to borrow money to invest in your business. However, if you want to take care of your retirement, you have to look at the stock market.
Stocks - Shares In A Company
Do your homework and select one to five stocks to invest in monthly. Budget a fixed amount you can afford and set up automatic monthly purchases on a specific date. This can be when you receive your income.
By keeping your purchases to a fixed amount, when the stock price drops, you will get more stock. When it increases, you will get less. This technique is called Dollar Averaging.
My suggestion is to open an account with as much as you can afford. Then plan on a fixed monthly contribution using direct deposit from your bank account.
If your company has a 401(k) plan, set this up at work for automatic weekly deductions from your paycheck.
We all have heard about Cryptocurrencies. The most common ones are Bitcoin, Etherium, Litecoin, Ripple and Cardano. At the end of 2017 they all rocketed in value with respect to the US Dollar. Then they all sank and stayed depressed for several years. At the end of 2020 something interesting happened.
Big institutions started taking Cryptocurrencies more seriously and started to invest heavily in them, especially Bitcoin. The net effect was to generate a new rise in value.
Dollar averaging can be also used for investing in Cryptos. There are several ways you can invest in Cryptos. The most common investment companies are Coinbase and Binance US. PayPal even offers purchases of Cryptocurrencies.
The cryptos I am investing in for the long term are:
Tp learn more about Cryptocurrencies, Google the term. You will come across many primers that will help you to understand how this works.
The market will go up and down. Over the past 10 years, we have experienced several drops in the stock market and cryptocurrencies, often called corrections. Yet, here we are today with stocks and cryptos, especially Bitcoin at record highs.
You cannot time the market. That is why I recommend having a long term perspective and use dollar averaging to minimize risk.
People can react badly when the stock market falls. The fear of loss is a very strong emotion in most of us. Hence, the first thought is to sell. Since you cannot time the market, the chances you will sell when. the values have fallen dramatically. The best move is to not sell. Then when the market hits bottom and starts to rise again. Start to make more purchases than your monthly plan. This is what the pros do. It requires discipline to act that way.
Buy low and sell high rather than buy high and sell low.
I hope this brief and limited article on investing will encourage you to evaluate your options to get your hard earned money to work for you.
The quicker you can get money to work for you instead of you working for money, the more secure you will be many years from now.