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  • Glenn

How to Build Long-Term Wealth

Opdateret: 26. dec. 2023

My goal is to achieve financial freedom. To achieve my goal, I primarily invest in stocks. To invest in stocks, you need capital. In this post, I will share my strategies for increasing my income in order to allocate more funds to investing. You can complete various simple tasks to earn additional income, which can significantly enhance your long-term wealth.

This is not a financial advice. I am not a financial advisor and I only do these post in order to do my own analysis and elaborate about my decisions, especially for my copiers and followers. If you consider investing in any of the ideas I present, you should do your own research or contact a professional financial advisor, as all investing comes with a risk of losing money.

The founder of Amazon, Jeff Bezos, once met Warren Buffett and asked him, “Warren, your investment strategy is so simple. Why doesn’t everyone just copy you?” Warren Buffett replied, “Because no one wants to get rich slow.”

This is not a get-rich-quick scheme, but a practical guide on how you can achieve financial freedom through patience. The guide is quite straightforward. You earn some money, invest it, and then repeat the process. However, I understand that not everyone has the financial resources to invest every month. Therefore, I will provide you with some advice on how to generate additional income.

The internet offers a wide range of opportunities to earn extra income. One of the easiest and most enjoyable ways to earn money is through FreeCash, where all you need to do is play games, watch videos, or take surveys. Each task pays you an amount of money that you can later receive via PayPal. The amount of money you can earn depends on the time you invest, but according to FreeCash's Trustpilot, there are people making more than $150 in four days. I haven't reached that point myself, but it appears to be possible. You can sign up for FreeCash and get started right away here.

If you only have a few minutes to spare occasionally, you can still earn extra income. You can do this through Clickworker, as they offer projects that are very small and can last for a few minutes up to an hour or so. However, even though it can take up to one hour, you can stop whenever you want, as you are paid per task. If you sign up at Clickworker, I would recommend taking the UHRS exam, as it would ensure that there are always projects available for you. The exam is not very extensive; it simply tests basic English skills and can be completed in less than 10 minutes. One thing I appreciate about Clickworker is that they promptly transfer payments to your PayPal account once you have earned more than 10 Euros. Therefore, you do not have to wait until the end of the month to receive payment, and you can put the money to work for you as quickly as possible. Remember that the projects are updated regularly, so you can log in and work on them whenever you have a few spare minutes. The amount you can earn depends on the projects and how frequently you use Clickworker. But at some point, I consistently made more than $100 a week for several months.

The easiest way to earn extra income is through McMoney, where all you have to do is receive text messages on your phone. McMoney sends text messages to your phone to test and improve mobile operations around the world. The SMS you receive is gibberish, and you can simply delete it afterward. You will be paid for each SMS you receive, and you will not receive spam. I have tried McMoney for a year and have made $50 in total. It won't make you rich, but I have received $50 without doing anything! It only works for Android, though. You can sign up for McMoney here. If you want a starting bonus (which is only available with a referral code), you can use my referral code PYN4HK9V

Once you have additional income, you will need to make it work for you by investing. Personally, I prefer using eToro because it is a highly user-friendly platform that allows you to get started with as little as $50 and buy fractional shares. It means that you can invest any amount of money as long as it is above $10. You can sign up for eToro here.

All right, now you have several ways to earn additional income. And you know which broker you need to sign up for. Now all you need to do is invest consistently. Whenever you receive payment or have additional income, or if you have surplus funds from elsewhere, you can invest in an ETF called SPY, which tracks the S&P500. Don't worry about whether the market is up or down; it doesn't matter in the long run. The strategy we use is called dollar-cost averaging, which means that sometimes you buy when prices are high and other times when they are low. In the long term, your investment will increase.

And don't think that investing is difficult. It is incredibly simple at eToro. I don't think you need a guide because it is so intuitive, but in case you do, you can find my guide to eToro here. It shows you how to invest on eToro.

You might be wondering why you should choose SPY. Well, first and foremost, Warren Buffett has advised that investors put 90% of their investment capital into low-cost S&P 500 index funds and the remaining 10% into short-term government bonds. We avoid investing in bonds and instead allocate all our funds to the index fund. Let me explain why:

The S&P 500 has historically delivered an average annualized return of approximately 10,13%. Let's assume that you can invest $200 per month, which is entirely feasible if you follow my earlier recommendations in this post.

With an average annualized return of 10,13%, it means that your $200 per month will compound nicely over the years. If you start from scratch and invest $200 a month, you will have $41.883 in 10 years. Out of the total amount of $41.883, $17.6231, will be interest, which means it is money you have received without doing anything.

However, the magic happens the longer you wait. In 20 years, you will have $155.963, with $107.963 being interest. In 30 years, the numbers will be even more impressive. You will have $468.952, with $396.752 in interest. In 40 years, you will have become a millionaire as you will have reached $1.327.221 with $1.231.021 being the interest earned.

If you work and invest more, you will reach your goal even faster. This is the magic of compound interest, which Albert Einstein called the eighth wonder of the world. This is the simple strategy for slowly building wealth that Warren Buffett talked about. And you can do it too. The sooner you start, the sooner you will achieve your goal.

I hope that you can use my ideas as inspiration to build your own wealth. Many successful investors believe in karma, as the saying goes, "if you give, you shall receive." I believe in it as well. In case you liked my post and have a few Euros to spare, you would both receive great karma and make me happy if you could donate a bit to Adepac. The website is in Spanish, but I can personally attest to the fact that they do an excellent job rescuing animals. I also know that they are in great need of every Euro they can get. In case you would like to make a donation, no matter how small, you can do it here by clicking on the PayPal icon. Thank you.

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