Make Your Money Work For You With Your Affiliate Marketing Profits

Last Update: January 24, 2021

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!

My Message

What is my point in sharing this past information with you? Several actually.

  1. Use bank savings to keep emergency funds only
  2. Invest in stocks for the long term
  3. Pick companies you are familiar with and know are solid
  4. Use Dollar Averaging To Buy Stocks
  5. 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.

Emergency Savings

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.

Speculative Investments

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:

  • Bitcoin
  • Etherium
  • Aave
  • VeChain
  • Ripple

Tp learn more about Cryptocurrencies, Google the term. You will come across many primers that will help you to understand how this works.

Main Takeway

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.

Happy investing!

Edwin

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FKelso Premium
Hey, Edwin, good to see you.

Right before starting WA, I worked on stock market education for a couple of years. Actually did rather well...invested mostly in marijuana stocks as they were beginning to grow, and over the course of a couple of years, turned $2,000 into about $10,000. Then I cashed it all out and closed down because wanted to enroll in a benefit program that would not allow me to own stock. Too bad, but such is life.
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EdwinBernard Premium
Hi Fran,

I feel you got out of the Cannabis stocks at the right time with a healthy profit. They went south after that.

Sorry to hear you are limited to invest in stocks at the level you would like. I am sure it will work out well in the end. At least you have security in your funds.

Cheers.

Edwin
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11slm11 Premium
Thank you Edwin. This will be very helpful for me in the future. I appreciate the information very much.
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EdwinBernard Premium
Hi Sheena,

Thanks for commenting. Glad that this can be of help to you in the future.

Edwin
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JeffreyBrown Premium
This was a very helpful post, Edwin! Thank you for sharing!

Jeff
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EdwinBernard Premium
Glad you think so Jeff. Glad to hear from you.

Edwin
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JeffreyBrown Premium
I do, Edwin, and great to see you!

Jeff
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drjec Premium
This is a very practical post. Its thinking ahead, planning and executing the plan. Today, many people are unwilling to wait the 10 years you sited to experience the rewards from their investment of time or energy.
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EdwinBernard Premium
Thanks for commenting Jim, It is hard to plan long term. That is why the best way is to invest small, but regularly. In that way it will not impact ones current financial situation but will benefit in the long run.

Cheers.

Edwin
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AlexEvans Premium
Some excellent information, Edwin. One of the things missing in core curriculums is financial and investing literacy.

One of the best investments we can make is to reinvest in our businesses to help them grow.
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EdwinBernard Premium
Hi Alex,

I totally agree with you. I wonder why that is so. Perhaps, those in education have little or no experience in these fields. Hence they don't see that as being a necessary core topic. Sad.

Thanks for commenting.

Edwin
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