Panhandle at one of the intersections that have a median. You walk back and forth with a big cardboard sign that says;
Hungry and Have No Job, and no Home. Will do anything for work.
Please Help. Any small amount gratefully accepted.
You pull in about 2 dollars per minute. That is 120 dollars an hour. After 5 hour shift you have 600 dollars.
You may have seen the other “poor” guys doing this.
Reality Check: they take home about 3000 a week for a 5-day week. That is 150 thousand a year and no taxes to pay.
They laugh all the way to the bank after a big steak dinner every night and drive around in their new truck.
What can you do in 5 hours to make $500? Well, you need to make $100 dollars every hour to reach $500. And you know every well that to make $500 you need capital to make more money otherwise you simply borrow from a friend or from 5 different friends $100 dollars each. You spend 1 hour each to ask 5 five different friends to make that amount you mentioned. Your question actually did not show anything about making, but it shows about how to get $500 in 5 hours. To make money. you need money or you have to have money to make more money.
Judging by your answer, I can’t know the following things:
- Where you live
- Your circumstances
- Your income and if you need this money to fund your lifestyle or not
- Are you an expat or local
- Your current age and other things about your circumstances
- How much risk do you want to take.
A good financial plan is bespoken to your circumstances - not what the latest news headlines show.
The biggest reasons people fail in investing are analyzing and watching fear-mongering news too much, getting emotional, and also taking random advice from friends.
People who succeed in investing tend to do the following things:
- Control their emotions. So many people buy high and sell low due to fear. We have seen that this year, and with Cathie Wood’s fund as per the video below. Linked to this is the concept of “doing your research”, which for most people just means buying if the price is going higher, or another emotional impulse.
2. Focus on the long-term. A long-term plan shouldn’t be affected by stocks rising or falling, by 20%.
3. Diversify both in terms of time diversification, as it is safer as per the charts below, and asset diversification - not putting all your eggs in one basket.
The last point is especially the case for middle-aged and older investors.
4. Take advice where needed. This could be to do with tax, investing, or other issues.
The more complicated your situation, the greater chance that advice will add some benefits.
5. Don’t try to time the perfect time to buy assets, also known as market timing, which doesn’t work.
And finally, they don’t stay in cash. Cash is a 100% guaranteed inflation loss.
What’s more, this year, inflation is due to top 10% in the UK according to the Bank of England’s forecasts, with banks paying 1%. That is a 9% loss to inflation.
If you buy assets, they will go up and down, but even if they go down, you don’t face a loss (only a decline) unless you sell out.
Nobody “lost” money investing one day before the stock and real estate crash in 2007-2008, if they kept their nerve. Prices recovered within 3 years.
In comparison, cash lost to inflation can never be recovered.
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