Fam, you’ll figure out real soon that I am not playing games in 2021. In today’s post, I will be taking the side hustle post to the next level. Side hustles are great and I have a couple of them myself, because mans have gats to hustle. But let’s be real, we need a plan that is a bit more so we can build long lasting wealth.
If you’re reading this, thinking “I’m all set with my 401k retirement account”… ummm fostoval, breaking news – you can’t touch that money until you are like 65 or something! Okay fine, I know you knew that, but my point is, Abisola doesn’t want to wait till she’s old to chop this life. As per minister of enjoyment, I am about ready o’ clock to splurge and start living my best life ever. I’m just kidding o… I promise there’s so much more to my “why”.
If you’re like me just a few months ago, investing in some kind of financial instrument seemed like a bunch of gibberish. So I called up my brother one day and was like bruh, just tell me exactly what to do; like “where do I go? What exactly should I invest in? How do I sign up? What form do I fill? Help! I’m clueless!” Here’s what big bro said – “for starters, just pick one thing to focus on.” So, I chose stocks and later added on cryptocurrencies. So for this post, I will focus on stocks. Come back for the next post for gist on other long term investments.
To put things in perspective for you, there are a bunch of many different financial instruments – stocks, cryptocurrencies (such as bitcoin), foreign exchange (often called Forex), bonds, and a gazillion types of mutual funds… money market funds, index funds, fixed income funds, and why are there so many dang on funds??? This is the type of stuff I learned in grad school that I didn’t realize we were actually supposed to use in real life.
Okay, let’s get started with stocks 101. Buying a stock is essentially like buying a tiny little piece of a company, and when the value of the company goes up, you sell your little piece and make your dollarses. Next, I asked big bro four simple questions about getting started with stocks.
1. Where do I buy stocks? There are a bunch of places where you can trade stocks, but if you don’t want to feel overwhelmed, help yourself and download the Robinhood app like now. It’s literally easy peasy. Use my referral link to get a free stock, start by investing a tiny little amount (there’s no minimum), and just explore the app.
2. How do I know what stocks to buy? Read up on whatever stocks might be interesting to you, plus sign up for newsletters so you can learn about stocks that you otherwise might not think of. Also, please help yourself and apply common sense. I started investing during the pandemic, which made it super easy. For example, the stock prices in the hospitality and travel industry were low, but we all know at some point, we shall resume travelling and gallivanting again, so I bought a few of those types of stocks. I also invested in a couple of the pharmaceutical companies that were working on the COVID vaccine, because eeeerrr common sense. China is a fast growing economy with 1 billion+ people who need to be served, so I invested in some Chinese companies too. Also, certain companies were just bound to skyrocket by virtue of the pandemonium or whatever… so d’uh common sense says to invest in those.
Hint hint, if the company you work for offers you their stocks at a discounted price and you haven’t bought it yet, please tell me how you would like me to deliver the knock on your head… Slow motion or in full force? Oh, and another unrelated hint, if the company you work for offers to match your 401k contributions and you haven’t signed up, don’t even bother talking to me. That’s like carrying money and flushing it down the toilet, literally.
3. How do I know the right time to buy a stock? To simplify, there are three things to do. First, look at the trends for the stock on Yahoo Finance, Google, or whatever platform you trade on (such as Robinhood). Second, read up on the company or what the news is saying about them. Is the company projected to continue to perform great? Or are they in kasala don burst, deep deep trouble? Third, look for expert recommendations on whether to buy, sell, or hold a stock. This is usually available on whatever platform you trade your stocks.
4. How do I know the right time to sell? It all depends on your goal. Do you want to be a “day trader” and collect your gains as soon as possible? Or do you want to buy and hold because you see a potential for bigger gains in the long run. Be warned about day trading sha… it can cause you to be sweating anyhow in the dead of winter, and your chest will be doing gbim gbim, like it’s having headic. It’s not for the faint-hearted.
I hope I made it easy enough for you to start getting your feet wet with investing in stocks. Granted, stocks are volatile and can be a risky investment, so take as much time as you need to understand it, do your due diligence, and ask as many questions as you want before you get started.
All that being said, Abisola is not a pro investor. Abisola does not have any formal training in this boring stuff. Abisola did not ask you to buy a specific stock or crypto currency. And finally, Abisola is not responsible if you lose money in the stock market.
P.S. if you’re looking for something relatively lower risk compared to stocks, you should read up on money market mutual funds.
Do you currently invest in stocks? If so, do you have any advice for newbies like me? If you’ve never invested in stocks, would you give it a try?