- Personal Finance»
- Financial Planning
The Buy-a-share Philosophy - Slowly Buying shares
Get rich slowly
Get Rich Slowly...
If you have strong ambition values and you keep searching for ways to cash in extra bucks you already found out there is no easy and quick way to do it. It's either quick and hard, easy and slow or slow and hard. No such thing has easy and quick in the financial word.
What I'm going to do is present to you a method of getting rich slowly, not filthy rich the kind of having a limousine with a pool in it but a real rich - having enough to expenses.
So, first thing you have to grasp is that - I'm not here to burst your bubble! You can be taking this as a way of me telling you: -No way you'll get rich.
I'm not telling you this, chances are that if you are determined enough you will become rich, using my advice or not, determination, motivation and focus towards one goal is a big chance to success.
So, what is the Buy-a-share Philosophy?
It's something I came up with that can increase the value of your active assets and help you to get the most of your spare change. An alternative to saving - investing.
I will explain below in detail.
Before we Begin
Do you know the basics of share trading?
Buy-a-share Philosophy - Phil and Jack
Lets suppose a guy named Phil and a guy named Jack were out for a stroll.
Phill was out with his jumpsuit and his wallet, Jack was out with a notepad.
They both were strolling around and got thirsty, so they stopped at a garden that had a fountain and a drink & ice cream parlor.
Phil took his wallet and went to the parlor to order a coke. He drank his coke and felt refreshed, Jack on the other hand took his notepad and wrote down coke - he then proceeded to the fountain to drink a bit of water.
Later that day Phil and Jack were talking about their pay raise. Phil told Jack he wanted to get a watch and Jack agreed, so they stopped by an internet cafe and used Google to search for their watches. This time, Jack noted down Google.
Phil noticed it and asked Jack:
- Hey Mate - said Phil - why are you noting down those things?
- Well - Jack started to explain - every time I'm going to use something I note down, and when I save on something I really wanted to buy I note it down as well. This way i can buy a share of the company. When i get home, I'm going to buy a coca-cola share and a Google share. You see Phil, buying a share means to buy part of the company - companies which people use or want the products are worthy of my investment, because they will likely succeed.
When you buy a share - Jack proceeds - you get dividends, a part of the company's profits, and you never loose the share. It will keep paying dividends until you sell it.
- Ah, I've heard so many people complaining they lost huge amounts in the stock market. - laughed Phil.
- Phil, there is always a risk in investing, but you can minimize it. Remember you only loose money on the stock market if you sell your shares for a lower price than what you buy. If you keep them to generate dividends the profit is what matters, and the market fluctuates lots - this fluctuation makes it easier that a loosing share might recover ground long enough for you to sell it if you are seeing it will crash and you don't want to keep it.
This philosophy is just a suggestion - I don't claim I am a big guru, or that this is THE way to get rich.
It's just an idea that works for me.