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Sample Simple Recipe for Wealth: Investing in the Stock Market, Part 1

Sample Simple Recipe for Wealth: Investing in the Stock Market, Part 1

A sample from our Simple Recipe for Wealth

June 18, 2024 • Estimated Reading Time: 4 minutes

Heyy there! Your weekly wealth sample is here!

This week, we are looking at the Simple Wealth Recipe principle: Everyone should be invested in the stock market.

Compounding, our BFF, is one of the greatest things to happen to us since sliced bread. Seriously.

We know the stock market has it’s ups and downs, but if used correctly, can definitely help accelerate the path from broke to billionaire.

Most people who don’t invest, don’t know where to start, don’t want to lose their hard earned money, or feel they need to have a lot of money or think they don’t understand it enough to participate — all valid concerns. And, literally why we’re here.

[LISTEN] SAMPLE: Simple Recipe for Wealth, for Investing

Here’s a short, 2 minute sample and an essential tip for investing in the stock market.

Common Questions About Investing

What stocks are good for beginners? For having a good ‘foundation’ in my portfolio?

As a rule of thumb, an ETF is THAT GIRL. Specifically this week, we are love the Vanguard S&P 500 ETF aka $VOO. Here’s 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 could’ve had $250,000, a quarter of a million dollars.

Taking Tiny Action Today: A small step toward building wealth

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.

We do know that investing in stocks is one of those essential ‘ingredients’ to help our money grow.

_{This is meant for educational purposes and it's not individual, investment, tax, or legal advice. All investment involves risk.}

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