How you can build long-term wealth
Opdateret: 1. feb.
My goal is to be financial independent, and to reach my goal I mainly invest in stocks. To invest in stocks, you need funds. In this post, I will share what I do to boost my income to be able to put more funds into investing. You can do some different easy tasks to earn an extra income, you can get promotions when investing and you can also cut fees. All these things combined can significantly boost your long-term wealth. In this post, I share some of the things I do, and you can do them too!
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.
Most of you probably know from eToro. Hence, you already know that I mainly want to build my wealth through stocks. I use a strategy that has worked for decades, where I buy great companies that are on sale. I have written several analyses here in my blog, but I also write posts at other places quite frequently. Unfortunately, I cannot write a post about every company I analyze, as I do not have the time and I also think that my copiers should have some benefits when choosing to copy me. The easiest way to follow my strategy is to copy me, as you wouldn't have to do anything but to sit back and relax and let me do all the work. However, it is not only through stocks that I'm building my wealth and, in this post, I would like to share with you how I'm building my long-term wealth. I hope that it will work as an inspiration to you.
A great way to start building wealth is to get another source of income. There are different ways to do so, and it also depends on how much extra time you have in hand. I personally have two extra sources of income besides my full-time job. The first one is doing some different projects online through Appen. The available projects depend on things such as language and location, meaning that some people will be able to access more projects than others. Usually, you get paid $23 per hour before taxes, and it is something I do if I have an hour or more to spare. You can also be lucky to get a job where you get paid per intent you make; these are fast paced, and you may be able to earn a substantial amount of money in these projects. My record is just above $2.000 in a month without me feeling I had spent a lot of time working. Everything I earn at Appen is used for investing. Let's say you work 15 hours a month (you can work whenever it fits you), you would approximately have $200 after taxes extra a month for investing. These can turn into a significant amount of money, which I will explain later in this post. Hence, if you haven't signed up already, I would encourage you to sign up and find a project you like. It doesn't cost you anything but a few minutes to sign up, and if it isn't appealing for you, you just don't apply for any projects. There are no reason not to see what they have to offer, so sign up right away and then you can always come back later and apply for a project. You can sign up here.
If you only have a few minutes to spare every now and then, you can still earn an extra income. You can do so through Clickworker. It is a bit different as the projects 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 get paid per intent. If you sign up at Clickworker, I would recommend you to do the UHRS exam, as it would mean that there are always projects available for you. It isn't much of an exam, as it just need to test that you have some basic English skills, and it takes less than 10 minutes to do. What I like about Clickworker is that they make a payment to your PayPal as soon as you have earned more than 10 Euros. Hence, you do not have to wait until the end of the month to get paid, and you can make the money work for you as fast as possible. Remember that the projects get updated all the time, meaning that you can log in and do some whenever you have a few minutes to spare. I do so and I hardly feel I'm working as I only do it a short amount of time each time. In my experience, it is possible to get an extra $100 a month from there, without really feeling you have done any work. In case you haven't signed up yet, I would recommend to do so, as it is completely free and you don't have to start working right away. It only takes a few minutes to sign up, so no reason to postpone it. Sign up here.
You might think, why you should sign up and spend some of your precious free time in doing extra work. I'm sure most of us already spend way too much time on social media or watching Netflix. You can of course choose to put those extra funds into copying me. Over the long-term I should be able to deliver a 15 % CAGR. If you start from scratch, and invest the $300 dollars every month, these would turn into $83.897 ($47.597 being interest earned) in 10 years, $455.0856 ($382.786 being interest earned) in 20 years and $2.103.246 ($1.994.946 being interest earned) in 30 years. It means that you could be a millionaire in 30 years without risking any money besides your extra income! And of that extra income you have only invested $108.310. No wonder Einstein called compounding interest the most powerful force in the universe.
Of course the stock market goes up and down. Hence, it is good to diversify your investments. One way to do so is to invest in loans through Mintos, as these are uncorrelated with the stock market. I have made a low risk strategy myself, which means you only choose companies with a guaranteed buyback. It means, you only lose money if the company defaults, which is why it is important to choose high quality companies. You find my strategy here. Using my strategy I managed to get an interest of 10,75 % on my investments. If you use your monthly $300 of extra income on Mintos using my strategy, it would turn into $62.777 in 10 years ($26.477 being interest earned), in 20 years it will turn into $231.907 ($159.607 being interest earned) and after 30 years it would amount to $689.748 ($581.448 being interest earned). Not bad for a few hours a week! If you prefer to diversify your investments, do so by first signing up at Mintos, and one you have done so, apply my strategy.
Another great thing about extra income is that you can use it for a riskier investment. Psychologically, it makes it easier to lose some money you didn't expect to have in the first place. In the beginning, I used all my extra income to buy cryptos. I'm by no means an expert on cryptos but I thought it would be fun to be in on the action. I have some different tokens, but I'm mainly invested in Bitcoin, Ethereum and Chainlink. Personally, I like to buy them at Coinbase, as I find their website very user friendly. If you sign up at Coinbase through this link, you will get $10 dollars' worth of Bitcoin for free, if you buy for more than $100 worth of cryptos. Even if you are don't want to spend money on cryptos, I would still advice you to sign up to Coinbase anyway. Their earn and learn section, makes it possible to get free cryptos, if you want some very short educational videos. I have earned $111 so far just by doing that. No reason not to sign up and earn free crypto! Sign up here, then you will also receive $10 of free bitcoin, if you decide to buy crypto for more than $100 at some point.
Once I have bought my cryptos at Coinbase, I transfer them to Nexo. It is the the world's largest lending institution in the digital finance industry. The good thing is that Nexo pays a daily interest on your cryptos and it is very easy to transfer your cryptos to them. I have almost all my cryptos in my Nexo account, and I enjoy seeing my daily interest getting paid, and compounded. If you sign up using this link, and you transfer more than $100 worth of cryptos and fully verify your account within 30 days, you will get $25 worth of Bitcoin for free. It means that in case you do not have an account on Coinbase or Nexo, you can sign up using my links. If you buy for $100 worth of any crypto at Coinbase and transfer these to Nexo, you will get $35 worth of Bitcoin for free. It means that you have boosted your crypto holdings by 35 % with only a few minutes work. And you will start compounding daily interest for all $135 worth of crypto immediately. You can also transfer cryptos from Binance and other crypto exchanges to Nexo. You can sign up and get your $25 here.
If you like me use eToro and don't live in a country that uses the U.S. dollar as currency, you must be aware of the high exchange rate at eToro, when adding funds to your eToro account. These fees will be costly in the long run, especially if you often add funds. Instead, you transfer your local currency to Revolut, and exchange to U.S: dollars here. I use it myself, and never experienced any problems. On the contrary it works very well and has very cheap exchange rates if you do it during weekdays. You might think it isn't worth the hassle but let me put an example, let's say you save $10, you might to think it is much, but if you had invested those $10 into Monster Beverages, in 2000, they would had grown into $6.200 by 2020! You can also use Revolut to buy stocks or cryptos, and if you travel much, you can order credit card at take advantage of the good exchange rates. You can sign up, and start saving money here.
I hope that you can use my ideas for some inspiration to build your own wealth. Many great investors believe in karma, as "if you give, you shall receive". I do believe in it as well. In case you liked my post and if you have a few Euros to spare, you would both get great karma and make me happy, if you would donate it bit to Adepac. The site is in Spanish but I know first hand that they do a great job in rescuing animals and I also know that they really need every Euro they can get. In case you would like to donate, no matter how little, you can do it here by clicking on the PayPal icon. Thank you.