Do not just save on everything. You have to focus on winning more and better. Nothing is more important than your work and your studies in the search for a rich and independent life. Study hard, work hard, the rest of your life depends on it. Always be updating yourself professionally, whatever your profession.
It may sound like it’s not true, but the only legal way to get rich is by working, except taking a thump from the chest or winning the lottery, weird things. It is no use studying investments and reading books if you do not work and save money to contribute. The best way to increase your equity is by contributing.
Forget dividends, interest, fixed income rates, compare winning funds, best rates and so on. Focus on your work. A thousand reais more you contribute in a month will make much more difference than gaining 0.5% more at a risky investment rate.
When people start studying finances they start doing crazy bills to retire soon or achieve financial independence and forget about work, it is they who are primarily responsible for it. If you have a technical level make a higher level, if you have a higher level to specialize more, take more courses in your area, be promoted in your company, try to earn more going abroad, dedicate yourself to your company to be promoted. That’s what matters, earn more to bring more. And also economize more to contribute more.
Otherwise, if you earn $ 2000 monthly and you contribute 500 reais it will be very difficult to get out of the corner, it is better to take a higher course and 5 years from now to earn 5 thousand reais than to stay in that forever. In the good, to invest is not enough to earn little, this is the illusion, focus on your work, the time to invest is when you earn better and you can live decently.
I already won 4k a month and it did not do much, mainly to invest, even more living alone in a distant city. Enjoy to read and grow in life. Contributions can wait. This is to take a step back and then take three steps forward.
When I was younger I saw several of my friends earning a buck working right away and I was broke and that frustrated me, but what good is rejoicing with a muck when you’re 18 and earning that for a lifetime? I have to say that several of my hurried friends are still very ill today because they did not qualify anymore, which is a shame. There are people that money cheats.
Since graduating from high school with a private lesson at college, I also worked in a tutoring course, correcting the test and helping the teachers, then in college I got some internships and a research grant if I earn very little and the goal is to survive. I graduated, I did not have a car, I was more than 24 years of riding a bus and a ride.
After I did my post and specialize myself, even more, I suffered a little, living on the beaks and walking of used and naked cheap car, always aiming at that salary of the future, zero contributions.
I finished my post almost at age 28 living alone, with a popular peeling and crumbling and zero equity. I could have worked since I was 18 and roasted my mixes at parties, trips, and women, but I did not do that, I stayed in my personal development and my profession. Only after that did I get my first job in the private sector and I was able to start studying investments, working better and better. My standard of living rose slightly, which included a day laborer and I traded the popular for a used sedan car and stopped right there.
My financial assets today came totally from my work and from my contributions, even total income is negative because I only invest in shares and I earn very little dividends, I think 5% pa of compensation. Is very little.
As the stock market fell overall I will continue to contribute at least until I lower my average price and buy more shares of good companies, after that, I can think of other things as real estate fund or reits.
In 2016 I’m going to work harder and contribute more, cut travels, cut carnival and maybe only travel to the Olympics (I’ve already regretted buying the tickets). My goal is to double my equity in the stock market this year and maybe by the end of the year reach my first million there. I must earn some 20 thousand reais of dividends in 2016 and some 33 thousand reais in 2017.
Considering the total equity is very little, I would rest assured in earning $ 100 thousand per year in dividends but this will take time. Maybe I buy a real estate fund as soon as my average prices drop to near current levels to take advantage of this fall of the Bovespa, but for now, I will keep the tactic.
For example, my average price at CEMIG was 17 reais, I took advantage of the low and bought more stock, now it lowered to 8 reais, very close to 6.70 from yesterday’s heart, so not bad. Banco does Brasil, my PM is at 21 reais and now it’s at 13, if I make a good purchase this month I can lower it to 16 reais, I’m still studying this. I only have these two state ones and they were the biggest falls.
I know this is not very consistent with the classic Buy and Hold, but I consider the companies good and it is a way to benefit me from the downturn. After that, I will continue the plan of the contributions. That’s it for now.