Debt

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Hey!​ ​I’m​ ​Aja​ ​McClanahan.​ ​I​ ​majored​ ​in​ ​Economics​ ​and​ ​am​ ​a​ ​personal​ ​finance/small business​ ​writer​ ​and​ ​blogger​ ​for​ ​websites​ ​like​ ​Inc.,​ ​Magnify​ ​Money,​ ​Intuit​ ​Quicken​ ​Loans, Go​ ​Banking​ ​Rates,​ ​Super​ ​Money​ ​and​ ​a​ ​ton​ ​of​ ​others. My​ ​personal​ ​$120,000​ ​debt​ ​pay​ ​off​ ​story​ ​has​ ​been​ ​featured​ ​in​ ​media​ ​outlets​ ​such​ ​as Yahoo​ ​Finance​,​ ​Market​ ​Watch​,​ ​Dr.​ ​Oz​ ​Good​ ​Life​​ ​and​ ​more. I​ ​also​ ​have​ ​my​ ​own​ ​website​ ​and​ ​podcast​,​ ​Principles​ ​of​ ​Increase​. Here,​ ​I​ ​help​ ​you​ ​explore​ ​your​ ​very​ ​own​ ​path​ ​to​ ​financial​ ​freedom.​ ​For​ ​us,​ ​that​ ​journey started​ ​with​ ​getting​ ​out​ ​of​ ​over​ ​$120,000​​ ​in​ ​debt.​ ​In​ ​the​ ​process,​ ​I​ ​started​ ​a​ ​six-figure business​ ​to​ ​help​ ​get​ ​rid​ ​of​ ​all​ ​that​ ​debt.​ ​It​ ​took​ ​a​ ​few​ ​years​ ​of​ ​determination​ ​and discipline​ ​until​ ​we​ ​finished​ ​paying​ ​every​ ​last​ ​dime​ ​off​ ​in​ ​2013.​ ​We​ ​are​ ​now​ ​on​ ​the​ ​path to​ ​increasing​ ​our​ ​net​ ​worth​ ​and​ ​entering​ ​into​ ​early​ ​retirement.​ ​I’d​ ​love​ ​to​ ​take​ ​you​ ​on that​ ​same​ ​journey! My​ ​goal​ ​is​ ​helping​ ​others​ ​find​ ​out​ ​their​ ​life’s​ ​vision​ ​and​ ​passion.​ ​Sadly,​ ​many​ ​can’t​ ​do much​ ​about​ ​this​ ​due​ ​to​ ​crazy​ ​financial​ ​situations.​ ​I​ ​want​ ​to​ ​help​ ​you​ ​fix​ ​that.​ ​Once​ ​you have​ ​breathing​ ​room​ ​in​ ​your​ ​finances,​ ​you​ ​will​ ​be​ ​better​ ​positioned​ ​to​ ​use​ ​the​ ​skills​ ​and talent​ ​you​ ​already​ ​have​ ​to​ ​bring​ ​in​ ​income​ ​that​ ​will​ ​be​ ​the​ ​foundation​ ​for​ ​financial stability​ ​and​ ​eventually​ ​financial​ ​independence. To​ ​learn​ ​more​ ​about​ ​obtaining​ ​financial​ ​independence,​ ​check​ ​out​ ​my​ ​website PrinciplesofIncrease.com​,​ ​join​ ​my​ ​mailing​ ​list​​ ​or​ ​connect​ ​in​ ​my​ ​free​ ​Facebook​ ​group​​ ​for more​ ​help​ ​on​ ​your​ ​money​ ​journey.

I’d​ ​be​ ​honored​ ​if​ ​you’d​ ​also​ ​follow​ ​me​ ​on​ ​social​ ​media! PINTEREST​​ ​|​ ​FACEBOOK​​ ​|​ ​INSTAGRAM​​ ​|​ ​GOOGLE+​​ ​|​ ​TWITTER​​ ​|​ ​ITUNES

Copyright​ ​©​ ​2016​ ​by​ ​Aja​ ​McClanahan All​ ​rights​ ​reserved.​ ​No​ ​part​ ​of​ ​this​ ​publication​ ​may​ ​be​ ​reproduced,​ ​distributed,​ ​or transmitted​ ​in​ ​any​ ​form​ ​or​ ​by​ ​any​ ​means,​ ​including​ ​photocopying,​ ​recording,​ ​or​ ​other electronic​ ​or​ ​mechanical​ ​methods,​ ​without​ ​the​ ​prior​ ​written​ ​permission​ ​of​ ​the​ ​publisher, except​ ​in​ ​the​ ​case​ ​of​ ​brief​ ​quotations​ ​embodied​ ​in​ ​critical​ ​reviews​ ​and​ ​certain​ ​other noncommercial​ ​uses​ ​permitted​ ​by​ ​copyright​ ​law.​ ​For​ ​permission​ ​requests,​ ​write​ ​to​ ​the publisher,​ ​addressed​ ​“Attention:​ ​Permissions​ ​Coordinator,”​ ​at​ ​the​ ​address​ ​below. Comprehense,​ ​Inc.​ ​c/o Principles​ ​of​ ​Increase​ ​Media P.O.​ ​Box​ ​24373 Chicago,​ ​IL​ ​60624 www.principlesofincrease.com This​ ​eBook​ ​may​ ​contain​ ​affiliate​ ​links​ ​to​ ​products​ ​and​ ​services​ ​mentioned.​ ​These​ ​links provide​ ​the​ ​publisher​ ​with​ ​commissions​ ​at​ ​no​ ​additional​ ​charge​ ​to​ ​you.  

 

Congratulations​ ​on​ ​taking​ ​the​ ​first​ ​step​ ​to​ ​taking​ ​control​ ​of​ ​your​ ​financial​ ​future. Learning​ ​to​ ​invest​ ​and​ ​then​ ​strategically​ ​buying​ ​securities​ ​is​ ​a​ ​wonderful​ ​way​ ​to build​ ​wealth. However,​ ​investing​ ​is​ ​one​ ​of​ ​those​ ​seemingly​ ​mysterious​ ​things​ ​that​ ​many​ ​people avoid​ ​because​ ​people​ ​don’t​ ​understand: ● ● ● ● ●

Why​ ​it’s​ ​important​ ​to​ ​invest Why​ ​they​ ​should​ ​trust​ ​the​ ​stock​ ​market The​ ​concept​ ​of​ ​the​ ​time​ ​value​ ​of​ ​money That​ ​they​ ​can​ ​start​ ​investing​ ​with​ ​very​ ​little​ ​money Why​ ​they​ ​should​ ​invest​ ​outside​ ​of​ ​their​ ​employer​ ​sponsored​ ​retirement plans

Rest​ ​assured.​ ​The​ ​idea​ ​of​ ​investing​ ​is​ ​not​ ​new.​ ​ ​People​ ​have​ ​been​ ​investing​ ​since ancient​ ​times.​ ​We​ ​live​ ​in​ ​a​ ​time​ ​in​ ​history​ ​where​ ​everyday​ ​people​ ​have​ ​access​ ​to​ ​the same​ ​tools​ ​as​ ​only​ ​the​ ​affluent​ ​had​ ​a​ ​short​ ​time​ ​ago.​ ​Now,​ ​it’s​ ​time​ ​to​ ​take​ ​advantage of​ ​that​ ​access​ ​and​ ​begin​ ​to​ ​create​ ​wealth​ ​for​ ​ourselves​ ​and​ ​future​ ​generations. That’s​ ​why​ ​I​ ​created​ ​this​ ​short​ ​guide​ ​to​ ​help​ ​you​ ​feel​ ​confident​ ​and​ ​comfortable​ ​with investing.

Why​ ​You​ ​Should​ ​Invest​ ​in​ ​the​ ​Stock​ ​Market

The​ ​simple​ ​reason​ ​is​ ​that​ ​time​ ​=​ ​money​.​ ​For​ ​example,​ ​let’s​ ​say​ ​you​ ​place​ ​$75​ ​per month​ ​into​ ​a​ ​brokerage​ ​account​ ​that​ ​holds​ ​your​ ​stocks,​ ​ETFs​ ​and​ ​other​ ​investments each​ ​month.​ ​If​ ​this​ ​account​ ​is​ ​for​ ​a​ ​child,​ ​let’s​ ​pretend​ ​you​ ​start​ ​this​ ​off​ ​the​ ​year​ ​he​ ​or she​ ​is​ ​born. Assuming​ ​you​ ​will​ ​keep​ ​buying​ ​investments​ ​until​ ​your​ ​child​ ​turns​ ​18.​ ​You’ll​ ​get​ ​a reasonable​ ​return​ ​of​ ​6%​ ​on​ ​your​ ​investments​ ​and​ ​have​ ​$31,000​ ​in​ ​the​ ​bank​ ​by​ ​the time​ ​they​ ​turn​ ​18!​ ​What​ ​would​ ​it​ ​mean​ ​to​ ​start​ ​like​ ​with​ ​$30,000?​ ​College​ ​help?​ ​A new​ ​house?​ ​A​ ​business​ ​purchase? Here’s​ ​the​ ​crazy​ ​part.​ ​You​ ​only​ ​contributed​ ​about​ ​$17,000​,​ ​the​ ​rest​ ​was​ ​multiplied by​ ​time​.​ ​This​ ​is​ ​the​ ​beauty​ ​of​ ​compound​ ​interest​.​ ​It​ ​allows​ ​your​ ​money​ ​to​ ​work hard​ ​for​ ​you​ ​instead​ ​of​ ​the​ ​other​ ​way​ ​around.

Take​ ​a​ ​look​ ​for​ ​yourself.​ ​I​ ​used​ ​this​ ​investment​ ​calculator​​ ​to​ ​compute​ ​the​ ​results:

 

  Here,​ ​you​ ​can​ ​see​ ​that​ ​over​ ​19​ ​years,​ ​$14,000​ ​was​ ​added​ ​interest.​ ​That​ ​is​ ​money​ ​you made​ ​while​ ​you​ ​were​ ​sleeping,​ ​out​ ​eating​ ​ice​ ​cream​ ​or​ ​just​ ​living​ ​life.​ ​Pretty impressive,​ ​right? Go​ ​ahead,​ ​create​ ​some​ ​scenarios​ ​yourself​ ​to​ ​see​ ​the​ ​possibilities​ ​of​ ​earning​ ​more​ ​for your​ ​hard-earned​ ​money​ ​with​ ​compound​ ​interest.  

Investing​ ​Calculator    

You​ ​might​ ​think​ ​this​ ​is​ ​all​ ​theory​ ​and​ ​practice.​ ​Take​ ​a​ ​look​ ​at​ ​a​ ​few​ ​accounts​ ​we’ve recently​ ​opened​ ​for​ ​ourselves​ ​and​ ​our​ ​kids:

In​ ​just​ ​about​ ​2​ ​years,​ ​we’ve​ ​grown​ ​our​ ​initial​ ​investment​ ​in​ ​these​ ​accounts​ ​by​ ​almost $3,500!​ ​Just​ ​imagine​ ​what​ ​could​ ​happen​ ​if​ ​you​ ​are​ ​able​ ​to​ ​invest​ ​more​ ​than​ ​$20k​ ​or so​ ​at​ ​a​ ​time. These​ ​numbers​ ​really​ ​get​ ​impressive​ ​for​ ​larger​ ​amounts​ ​like​ ​$100,000.​ ​If​ ​we​ ​had invested​ ​$200k​ ​to​ ​start​ ​instead​ ​of​ ​$20k,​ ​our​ ​yield​ ​would​ ​have​ ​been​ ​$35,000​ ​instead of​ ​$3,500! That’s​ ​why​ ​it’s​ ​important​ ​to​ ​control​ ​your​ ​lifestyle​ ​so​ ​that​ ​you​ ​can​ ​put​ ​more​ ​money into​ ​investing.​ ​If​ ​you​ ​are​ ​currently​ ​in​ ​debt​ ​with​ ​lots​ ​of​ ​bills,​ ​you​ ​want​ ​to​ ​resolve those​ ​money-sucks​ ​so​ ​you’ll​ ​have​ ​more​ ​to​ ​invest. Related​ ​reading:​ ​Get​ ​out​ ​of​ ​Debt​ ​Now​ ​(free​ ​eBook) Also,​ ​keep​ ​in​ ​mind​ ​that​ ​you​ ​don’t​ ​have​ ​to​ ​invest​ ​$10k​ ​or​ ​$20k​ ​right​ ​away.​ ​You​ ​will start​ ​with​ ​$25​ ​a​ ​month,​ ​go​ ​up​ ​to​ ​$50​ ​and​ ​when​ ​you​ ​get​ ​$500​ ​or​ ​so​ ​in​ ​your​ ​trading account,​ ​you​ ​will​ ​start​ ​to​ ​buy​ ​your​ ​stocks. It’s​ ​a​ ​process!

Is​ ​Investing​ ​Risky?

Investing​ ​is​ ​only​ ​if​ ​you​ ​don’t​ ​take​ ​time​ ​to​ ​understand​ ​it.​ ​You​ ​don’t​ ​have​ ​to​ ​be​ ​a​ ​math genius​ ​to​ ​invest.​ ​You​ ​only​ ​have​ ​to​ ​actually​ ​start​.​ ​Your​ ​contributions​ ​will​ ​far outweigh​ ​your​ ​market​ ​savvy,​ ​that’s​ ​why​ ​it’s​ ​important​ ​to​ ​just​ ​start​ ​your​ ​investing journey​ ​ASAP.​ ​Remember,​ ​time​ ​=​ ​money! Once​ ​you​ ​start​ ​putting​ ​money​ ​away​ ​and​ ​buying​ ​stocks,​ ​you​ ​will​ ​get​ ​very​ ​familiar with​ ​how​ ​to​ ​avoid​ ​losing​ ​all​ ​of​ ​your​ ​money. In​ ​order​ ​to​ ​minimize​ ​risk,​ ​you​ ​should​ ​know​ ​the​ ​different​ ​ways​ ​you​ ​can​ ​invest​ ​in​ ​the stock​ ​market: ● Day​ ​trading​-​ ​this​ ​is​ ​the​ ​riskiest​ ​way​ ​to​ ​be​ ​involved​ ​in​ ​the​ ​stock​ ​market.​ ​It​ ​can be​ ​expensive​ ​because​ ​you​ ​are​ ​buying​ ​and​ ​selling​ ​constantly​ ​within​ ​a​ ​12-24 hour​ ​period.​ ​Those​ ​transactions​ ​cost​ ​money!​ ​Also,​ ​this​ ​is​ ​very​ ​close​ ​to gambling​ ​and​ ​I​ ​would​ ​not​ ​suggest​ ​it​ ​for​ ​anyone,​ ​especially​ ​those​ ​starting​ ​out.

● Swing​ ​trading​-​ ​You​ ​will​ ​keep​ ​stocks​ ​for​ ​longer​ ​time​ ​periods​ ​of​ ​2-14​ ​days​ ​by entering​ ​or​ ​exiting​ ​at​ ​a​ ​profit​ ​point.​ ​This​ ​can​ ​still​ ​be​ ​risky​ ​if​ ​you​ ​are​ ​not​ ​sure how​ ​to​ ​analyze​ ​stock​ ​patterns​ ​and​ ​related​ ​charts. ● Long​ ​term​ ​value​ ​investing​-​ ​This​ ​is​ ​a​ ​long​ ​term​ ​strategy​ ​where​ ​you​ ​would diversify​ ​and​ ​hold​ ​onto​ ​your​ ​stocks​ ​for​ ​the​ ​longest​ ​period​ ​possible.​ ​You​ ​can buy​ ​individual​ ​stocks​ ​or​ ​ETFs​ ​and​ ​this​ ​strategy​ ​can​ ​work​ ​well​ ​but​ ​it​ ​takes patience​ ​to​ ​see​ ​profits.  

What​ ​Strategy​ ​Should​ ​I​ ​Use​ ​to​ ​Invest?

Ideally,​ ​you​ ​will​ ​start​ ​with​ ​a​ ​long-term​ ​strategy​ ​(I​ ​would​ ​never​ ​recommend​ ​day trading​ ​to​ ​anyone.) Then,​ ​once​ ​you​ ​are​ ​comfortable​ ​there,​ ​you​ ​can​ ​begin​ ​experimenting​ ​with​ ​swing trading​.​ ​Then​ ​use​ ​your​ ​profits​ ​there​ ​to​ ​go​ ​back​ ​into​ ​your​ ​long​ ​term​ ​investing account. To​ ​start,​ ​I​ ​would​ ​advise​ ​you​ ​to​ ​open​ ​a​ ​brokerage​ ​account​,​ ​then​ ​begin​ ​making​ ​cash deposits​ ​into​ ​it​ ​regularly.​ ​You​ ​can​ ​start​ ​with​ ​$25,​ ​$50​ ​or​ ​$100​ ​per​ ​month.​ ​I​ ​automate this​ ​directly​ ​from​ ​my​ ​paycheck.​ ​It​ ​keeps​ ​us​ ​from​ ​spending​ ​money​ ​we​ ​should​ ​be investing. When​ ​you​ ​get​ ​$500​ ​or​ ​$1,000​ ​saved​ ​up​ ​in​ ​the​ ​brokerage​ ​account​,​ ​buy​ ​some​ ​stocks​ ​of companies​ ​you​ ​are​ ​familiar​ ​with. Examples​ ​include​ ​Coca​ ​Cola,​ ​Apple,​ ​Nike,​ ​Walmart,​ ​etc.​ ​(See​ ​the​ ​last​ ​pages​ ​for​ ​a​ ​list of​ ​dividend​ ​yielding​ ​stocks​ ​and​ ​ETFs​ ​(​exchange​ ​traded​ ​funds​)​ ​to​ ​consider.​ ​These​ ​are not​ ​recommendations,​ ​only​ ​examples.​ ​Please​ ​research​ ​these​ ​stocks​ ​before purchasing.)

How​ ​Can​ ​I​ ​Minimize​ ​My​ ​Risk​ ​and​ ​Not​ ​Lose​ ​Money?

Realize​ ​that​ ​investing​ ​in​ ​the​ ​stock​ ​market​ ​can​ ​help​ ​you​ ​earn​ ​a​ ​lot​ ​of​ ​money.​ ​The rewards​ ​can​ ​be​ ​really​ ​high,​ ​but​ ​so​ ​is​ ​the​ ​risk.​ ​It’s​ ​not​ ​like​ ​a​ ​regular​ ​savings​ ​account where​ ​your​ ​principal​ ​balance​ ​will​ ​always​ ​be​ ​there.

For​ ​example,​ ​$1,000​ ​in​ ​my​ ​bank​ ​only​ ​earns​ ​me​ ​$10​ ​of​ ​interest​ ​each​ ​year.​ ​While $1,000​ ​in​ ​my​ ​brokerage​ ​account​​ ​could​ ​earn​ ​$100,​ ​$200,​ ​or​ ​more.​ ​But​ ​there​ ​is​ ​the chance​ ​that​ ​I​ ​log​ ​in​ ​and​ ​see​ ​the​ ​account​ ​balance​ ​is​ ​$0​ ​with​ ​an​ ​investing​ ​account. Having​ ​your​ ​brokerage​ ​account​​ ​balance​ ​go​ ​down​ ​to​ ​$0​ ​is​ ​highly​ ​unlikely.​ ​But​ ​if​ ​you are​ ​really​ ​uneasy​ ​about​ ​this,​ ​here​ ​are​ ​some​ ​recommendations​ ​to​ ​help​ ​you​ ​start slowly:

Diversify​ ​with​ ​Multiple​ ​Stocks​ ​and​ ​ETFs 

When​ ​you​ ​buy​ ​your​ ​stocks,​ ​you​ ​don’t​ ​want​ ​to​ ​buy​ ​the​ ​same​ ​stock​ ​all​ ​the​ ​time.​ ​To have​ ​$10,000​ ​all​ ​in​ ​Walmart​ ​stock​ ​could​ ​be​ ​risky​ ​for​ ​you.​ ​If​ ​something​ ​happened​ ​to that​ ​company,​ ​you​ ​could​ ​lose​ ​all​ ​or​ ​a​ ​big​ ​part​ ​of​ ​your​ ​savings.​ ​ ​If​ ​you​ ​have​ ​$100,000 in​ ​the​ ​stock​ ​market​ ​in​ ​all​ ​and​ ​only​ ​$10,000​ ​in​ ​Walmart​ ​stock,​ ​you​ ​are​ ​in​ ​a​ ​much better​ ​position. So​ ​one​ ​strategy​ ​is​ ​to​ ​buy​ ​different​ ​kinds​ ​of​ ​stock.​ ​Another​ ​is​ ​to​ ​buy​ ​ETFs. ETFs​ ​are​ ​exchange​ ​traded​ ​funds.​ ​They​ ​are​ ​like​ ​“buckets”​ ​of​ ​stocks​ ​you​ ​can​ ​purchase in​ ​fractional​ ​amounts.​ ​For​ ​example,​ ​the​ ​VBR​ ​or​ ​Vanguard​ ​Small​ ​Cap​ ​Value​ ​ETF​, contains​ ​over​ ​800​ ​stocks​ ​that​ ​you​ ​can​ ​buy​ ​for​ ​a​ ​little​ ​over​ ​$100-one​ ​little​ ​piece​ ​at​ ​a time. ETFs​ ​are​ ​ways​ ​to​ ​stabilize​ ​your​ ​portfolio​ ​(stock​ ​collection)​ ​because​ ​you​ ​are spreading​ ​your​ ​risk​ ​across​ ​thousands​ ​of​ ​companies​ ​and​ ​investing​ ​a​ ​small​ ​dollar amount​ ​at​ ​a​ ​time.​ ​Plus,​ ​you​ ​are​ ​investing​ ​across​ ​multiple​ ​industries​ ​like​ ​technology, healthcare,​ ​consumer​ ​services,​ ​oil​ ​&​ ​gas​ ​plus​ ​many​ ​others. ETFs,​ ​because​ ​they​ ​are​ ​spread​ ​so​ ​thin​ ​across​ ​many​ ​companies,​ ​tend​ ​to​ ​grow​ ​slower but​ ​preserve​ ​your​ ​original​ ​investment.​ ​They​ ​are​ ​less​ ​prone​ ​to​ ​big​ ​price​ ​swings.​ ​So​ ​if you​ ​are​ ​really​ ​afraid​ ​to​ ​start​ ​investing,​ ​these​ ​will​ ​help​ ​lower​ ​your​ ​risk​ ​substantially. In​ ​our​ ​portfolio,​ ​we​ ​purchase​ ​90%​ ​ETFs​ ​or​ ​exchange​ ​traded​ ​funds​ ​and​ ​10% individual​ ​stocks. Note:​ ​You​ ​would​ ​still​ ​do​ ​extremely​ ​well​ ​buying​ ​one​ ​or​ ​two​ ​shares​ ​of​ ​a​ ​low-cost​ ​ETF each​ ​month.​ ​With​ ​this​ ​strategy,​ ​you​ ​don’t​ ​have​ ​to​ ​invest​ ​in​ ​individual​ ​stocks.

Paper​ ​Trading​ ​and​ ​Mock​ ​Portfolios 

If​ ​you​ ​are​ ​still​ ​deftly​ ​afraid​ ​to​ ​put​ ​money​ ​into​ ​a​ ​stock​ ​or​ ​ETF,​ ​set​ ​up​ ​an​ ​account​ ​on​ ​a simulated​ ​platform.​ ​Some​ ​popular​ ​ones​ ​include: ● Think​ ​or​ ​Swim​ ​by​ ​TD​ ​Ameritrade ● Google​ F ​ inance​ ​Portfolio ● Yahoo!​ F ​ inance​ ​Mock​ ​Trader Here​ ​you​ ​buy​ ​and​ ​sell​ ​stocks​ ​or​ ​create​ ​“fake”​ ​portfolios​ ​(a​ ​collection​ ​of​ ​stocks​ ​or ETFs)​ ​to​ ​see​ ​how​ ​they​ ​would​ ​perform.​ ​Practice​ ​here​ ​until​ ​you​ ​are​ ​confident​ ​enough to​ ​use​ ​real​ ​money.

What​ ​about​ ​People​ ​Who​ ​Lose​ ​Money​ ​with​ ​Stocks?

Many​ ​times,​ ​when​ ​you​ ​hear​ ​about​ ​people​ ​losing​ ​large​ ​amounts​ ​of​ ​money,​ ​they​ ​likely participated​ ​in​ ​really​ ​risky​ ​trading​ ​schemes​ ​or​ ​were​ ​trying​ ​to​ ​make​ ​money​ ​quickly in​ ​a​ ​reckless​ ​way.​ ​This​ ​is​ ​more​ ​like​ ​gambling.     True,​ ​there​ ​will​ ​be​ ​stock​ ​market​ ​corrections​ ​that​ ​can​ ​seemingly​ ​wipe​ ​out​ ​a​ ​large​ ​part of​ ​your​ ​portfolio​ ​in​ ​a​ ​matter​ ​of​ ​minutes,​ ​but​ ​those​ ​times​ ​are​ ​rare.​ ​Even​ ​when​ ​it​ ​does happen,​​ ​studies​ ​show​ ​that​ ​if​ ​you​ ​don’t​ ​panic​ ​and​ ​sell​ ​everything​,​ ​you​ ​will​ ​be​ ​in​ ​a position​ ​to​ ​earn​ ​even​ ​more​ ​from​ ​your​ ​investments. The​ ​key​ ​here​ ​is​ ​to​ ​play​ ​the​ ​long​ ​game​ ​when​ ​it​ ​comes​ ​to​ ​investing.​ ​This​ ​means​ ​you will​ ​be​ ​conservative​ ​and​ ​cautious​ ​when​ ​buying​ ​stocks.​ ​You​ ​will​ ​also​ ​plan​ ​to​ ​invest your​ ​money​ ​for​ ​a​ ​minimum​ ​of​ ​3-5​ ​years​ ​and​ ​diversify​ ​your​ ​stock​ ​holdings​ ​to​ ​help maintain​ ​your​ ​initial​ ​investment.    

   

 

Immediately​ ​after​ ​opening​ ​your​ ​trading​ ​account​ ​and​ ​purchasing​ ​your​ ​first​ ​few stocks,​ ​take​ ​a​ ​moment​ ​to​ ​extend​ ​your​ ​investing​ ​education​ ​with​ ​a​ ​few​ ​resources.  

Value​ ​Investing​ ​and​ ​Stock​ ​Market  Fundamentals​-​ ​eCourse 

  This​ ​is​ ​an​ ​eCourse​ ​that​ ​will​ ​break​ ​down​ ​the​ ​value-based​ ​philosophy​ ​of​ ​investing.​ ​If you​ ​don’t​ ​have​ ​time​ ​to​ ​read​ ​books​ ​by​ ​Warren​ ​Buffet​​ ​or​ ​The​ ​Intelligent​ ​Investo​r​ ​by his​ ​mentor,​ ​Benjamin​ ​Graham,​ ​you’ll​ ​get​ ​a​ ​good​ ​Cliff-notes​ ​version​ ​of​ ​these time-honored​ ​resources​ ​from​ ​Greg​ ​Vanderford​ ​(the​ ​course​ ​instructor.)​ ​This​ ​is​ ​your long-term​ ​investing​ ​strategy.    

   

 

Stocks​ ​&​ ​Profit​-​ ​Free​ ​eCourse   

This​ ​course​ ​by​ ​Tela​ ​Holcomb​,​ ​who​ ​retired​ ​by​ ​33​ ​due​ ​to​ ​investing,​ ​will​ ​get​ ​you started​ ​on​ ​the​ ​essentials​ ​of​ ​value​ ​investing​ ​and​ ​swing​ ​trading.    

   

 

Finally,​ ​here​ ​are​ ​some​ ​other​ ​resources​ ​you​ ​should​ ​go​ ​over​ ​to​ ​help​ ​you​ ​open​ ​your trading​ ​account,​ ​fund​ ​it​ ​and​ ​execute​ ​a​ ​trade.​ ​You’ll​ ​also​ ​want​ ​to​ ​read​ ​some information​ ​that​ ​will​ ​fuel​ ​your​ ​investing​ ​journey.   Check​ ​out​ ​these​ ​video​ ​and​ ​Principles​ ​of​ ​Increase​​ ​videos​ ​&​ ​blog​ ​posts​ ​for​ ​this  purpose:   

● ● ● ● ● ● ● ● ●  

   

Open​ ​Your​ ​Brokerage​ ​Account​​ ​(video)  Funding​ ​Your​ ​Brokerage​ ​Account​​ ​(video)  Executing​ ​Your​ ​First​ ​Stock​ ​Trade​​ ​(video)  How​ ​to​ ​Start​ ​Investing​ ​in​ ​Individual​ ​Stocks​​ ​(video)  Investing​ ​for​ ​Beginners​ ​ETFs​ ​vs​ ​Stocks  $500​ ​to​ ​$29,000​ ​with​ ​this​ ​DIY​ ​Investing​ ​Strategy  5​ ​Reasons​ ​to​ ​Invest​ ​Outside​ ​of​ ​Your​ ​401K  How​ ​to​ ​Start​ ​Investing​ ​for​ ​Beginners   How​ ​to​ ​Save​ ​Money​ ​for​ ​Stock​ ​Purchases 

   

Appendix​ ​A

Example​ ​Stock​ ​Buying​ ​Plan    

Option​ ​#1-​ ​ETFs​ ​only ● Keep​ ​it​ ​SUPER​ ​simple​ ​and​ ​choose​ ​ONE​ ​index​ ​fund.​ ​Add​ ​$25​ ​a​ ​month​ ​to​ ​your account​ ​and​ ​every​ ​time​ ​you​ ​have​ ​$100​ ​or​ ​$150....​ ​buy​ ​a​ ​share​ ​of​ ​an​ ​ETF​ ​(see examples​ ​below.) ● ​ ​Keep​ ​making​ ​purchases​ ​every​ ​time​ ​you​ ​build​ ​up​ ​enough​ ​cash​ ​in​ ​your​ ​trading account. That's​ ​it​ ​and​ ​you​ ​are​ ​officially​ ​an​ ​investor!​ ​No​ ​need​ ​for​ ​lots​ ​of​ ​money​ ​a​ ​fancy​ ​advisor, etc.​ ​You​ ​can​ ​do​ ​this​ ​yourself! Option​ ​#2-​ ​ETFs​ ​plus​ ​some​ ​stock Another​ ​option​ ​is​ ​to​ ​split​ ​up​ ​your​ ​spend​ ​to​ ​get​ ​a​ ​little​ ​more​ ​diversity...but​ ​you​ ​don't have​ ​to​ ​b/c​ ​most​ ​index-based​ ​funds​ ​are​ ​already​ ​pretty​ ​diverse. _______ We​ ​use​ ​Vanguard​ ​index​ ​funds​​ ​but​ ​you​ ​can​ ​choose​ ​any​ ​funds​ ​that​ ​follow​ ​the​ ​SP​ ​500, Nasdaq,​ ​etc.​ ​We​ ​like​ ​Vanguard​ ​because​ ​they​ ​are​ ​low-cost​ ​and​ ​have​ ​had​ ​good​ ​returns. Here​ ​is​ ​a​ ​list​ ​of​ ​Vanguard​ ​funds​. Say​ ​you​ ​have​ ​$1,500​ ​or​ ​$2,500​ ​piled​ ​up-​ ​invest​ ​this​ ​way​ ​if​ ​you​ ​want​ ​different​ ​funds to​ ​invest​ ​in. Vanguard​ ​Small​ ​Cap​ ​Value​ ​Tilt​ ​(30%);​ ​Symbol=​ ​VBR Vanguard​ ​Mid-Cap​ ​Growth​ ​(10%);​ ​Symbol=​ ​VOT Vanguard​ ​Large-Cap​ ​Growth​ ​(10%);​ ​Symbol=​ ​VUG Vanguard​ ​High​ ​Dividend​ ​Yield​ ​(10%);​ ​Symbol=​ ​VYM Vanguard​ ​FTSE​ ​All​ ​World​ ​Ex​ ​US(10%);​ ​Symbol=​ ​VEU

Vanguard​ ​MSCI​ ​Emerging​ ​Markets(10%);​ ​Symbol=​ ​VWO Vanguard​ ​Real​ ​Estate​ ​Investment​ ​Trust(10%);​ ​Symbol=​ ​VNQ YOUR​ ​STOCK​ ​PICKS​ ​10%​ ​-aapl,​ ​nike,​ ​GE,​ ​etc. You​ ​can​ ​open​ ​an​ ​account​ ​free​ ​here: Here​ ​is​ ​my​ ​referral​ ​link​ ​for​ ​tradekinghttp://www.principlesofincrease.com/TradeKingStocks They​ ​just​ ​got​ ​purchased​ ​by​ ​Ally,​ ​so​ ​the​ ​website​ ​will​ ​redirect​ ​to​ ​"Ally​ ​invest" Here​ ​is​ ​a​ ​free​ ​video​ ​on​ ​opening​ ​an​ ​account,​ ​funding​ ​it​ ​and​ ​make​ ​your​ ​first​ ​purchase: https://www.youtube.com/watch?v=aE_2P4OC1n8&list=PLvl2xtuacFkf0RZHmWyP gMkS-xXdwAJs​m  

 

Appendix​ ​B

Example​ ​of​ ​Popular​ ​Dividend​ ​Paying​ ​Stocks  1

This​ ​list​ ​has​ ​been​ ​compiled​ ​by​ ​Dividend.com

The​ ​following​ ​list​ ​contains​ ​all​ ​of​ ​the​ ​Dow​ ​30​ ​stocks.​ ​These​ ​stocks​ ​are​ ​among​ ​the most​ ​popular​ ​and​ ​widely​ ​held​ ​stocks​ ​in​ ​the​ ​world,​ ​as​ ​they​ ​are​ ​considered​ ​some​ ​of the​ ​most​ ​solid​ ​"blue​ ​chip"​ ​stocks​ ​on​ ​the​ ​market.​ ​The​ ​following​ ​stocks​ ​are​ ​ranked​ ​by Dividend.com's​ ​DARS​ ​Rating. Dividen d  Yield** 

Curren t  Price* 

Annual  Dividen d 

Ex-D iv  Date 

Pay  Date 

Login/Signu p​ ​for  Ratings 

2.65% 

73.84 

1.96 

08/1 0 

09/0 6 

Johnson​ ​&​ ​Johnson 

Login/Signu p​ ​for  Ratings 

2.60% 

122.85 

3.20 

05/2 0 

06/0 7 

MMM 

3M 

Login/Signu p​ ​for  Ratings 

2.51% 

177.12 

4.44 

05/1 8 

06/1 2 

PG 

Procter​ ​&​ ​Gamble 

Login/Signu p​ ​for  Ratings 

3.12% 

85.77 

2.68 

04/1 4 

05/1 6 

PFE 

Pfizer 

Login/Signu p​ ​for  Ratings 

3.32% 

36.12 

1.20 

08/0 3 

09/0 1 

VZ 

Verizon 

Login/Signu p​ ​for  Ratings 

4.04% 

55.90 

2.26 

07/0 6 

08/0 1 

MSFT 

Microsoft 

Login/Signu p​ ​for  Ratings 

2.75% 

52.30 

1.44 

08/1 6 

09/0 8 

Stock  Symbol 

Company  Name 

DARS™  Rating ​[​?​] 

WMT 

Wal-Mart​ ​Stores 

JNJ 

​ ​http://www.dividend.com/dividend-stocks/dow-30-dividend-stocks.php

1

KO 

Coca-Cola​ ​Co. 

Login/Signu p​ ​for  Ratings 

3.09% 

45.38 

1.40 

06/1 3 

07/0 1 

MRK 

Merck 

Login/Signu p​ ​for  Ratings 

3.10% 

59.35 

1.84 

06/1 3 

07/0 8 

INTC 

Intel​ ​Corp 

Login/Signu p​ ​for  Ratings 

3.06% 

34.00 

1.04 

05/0 4 

06/0 1 

TRV 

Travelers​ ​Co. 

Login/Signu p​ ​for  Ratings 

2.27% 

118.08 

2.68 

06/0 8 

06/3 0 

HD 

Home​ ​Depot 

Login/Signu p​ ​for  Ratings 

2.05% 

134.34 

2.76 

05/3 1 

06/1 6 

GE 

General​ ​Electric 

Login/Signu p​ ​for  Ratings 

2.86% 

32.20 

0.92 

06/1 6 

07/2 5 

BA 

Boeing​ ​Co. 

Login/Signu p​ ​for  Ratings 

3.35% 

130.09 

4.36 

08/1 0 

09/0 2 

UTX 

United​ ​Technologies 

Login/Signu p​ ​for  Ratings 

2.55% 

103.66 

2.64 

08/1 7 

09/1 0 

AXP 

American​ ​Express 

Login/Signu p​ ​for  Ratings 

1.89% 

61.49 

1.16 

06/2 9 

08/1 0 

GS 

Goldman​ ​Sachs 

Login/Signu p​ ​for  Ratings 

1.73% 

150.38 

2.60 

05/2 7 

06/2 9 

NKE 

Nike​ ​Inc. 

Login/Signu p​ ​for  Ratings 

1.13% 

56.72 

0.64 

06/0 2 

07/0 5 

DIS 

The​ ​Walt​ ​Disney​ ​Company 

Login/Signu p​ ​for  Ratings 

1.33% 

99.62 

1.32 

07/0 7 

07/2 8 

AAPL 

Apple​ ​Inc. 

Login/Signu p​ ​for  Ratings 

2.36% 

96.68 

2.28 

05/0 5 

05/1 2 

UNH 

UnitedHealth​ ​Group 

Login/Signu p​ ​for  Ratings 

1.77% 

141.27 

2.50 

06/1 5 

06/2 8 

V 

Visa 

Login/Signu p​ ​for  Ratings 

0.73% 

76.42 

0.56 

05/1 1 

06/0 7 

CSCO 

Cisco​ ​Systems 

Login/Signu p​ ​for  Ratings 

3.55% 

29.26 

1.04 

07/0 5 

07/2 7 

IBM 

IBM​ ​Corp 

Login/Signu p​ ​for  Ratings 

3.63% 

154.46 

5.60 

05/0 6 

06/1 0 

DD 

DuPont 

Login/Signu p​ ​for  Ratings 

2.39% 

63.69 

1.52 

05/1 1 

06/1 0 

XOM 

Exxon​ ​Mobil 

Login/Signu p​ ​for  Ratings 

3.21% 

93.54 

3.00 

05/1 1 

06/1 0 

JPM 

JP​ ​Morgan​ ​Chase 

Login/Signu p​ ​for  Ratings 

3.11% 

61.83 

1.92 

07/0 1 

07/3 1 

CVX 

Chevron​ ​Corp 

Login/Signu p​ ​for  Ratings 

4.09% 

104.77 

4.28 

05/1 7 

06/1 0 

CAT 

Caterpillar​ ​Inc. 

Login/Signu p​ ​for  Ratings 

3.98% 

77.37 

3.08 

07/1 8 

08/2 0 

MCD 

McDonald's 

Login/Signu p​ ​for  Ratings 

2.80% 

121.31 

3.40 

06/0 2 

06/2 0