That’s almost 10x my daily target!
If you’re like me, you’re not yet a famous writer and your main income stream is not on that side either. That means that you have other income streams, just like I do.
In the past, I have been trying to get rich quick following advices found on many websites or in numerous ebooks. While some tricks appeared to be working great at first sight, the end was less than convincing.
As a matter of fact, I have tried more than a dozen of them and I could say that in the end, I lost more money that I did overall. Even more important than money, I have lost many years putting time and efforts in the different schemes that did not bring me real wealth at all.
The best things I have learned from those trials and errors are:
· There is no such thing as an easy way to make money
· There is no super-fast track to become wealthy overnight
· I have learned a lot regarding everything that touches the Internet
· While doing so, I have learned a lot of new skills that are still valid today
After failing so many times, I ended asking myself what to do. It is true that there are millions of people who are millionaires or even billionaires. How did they become rich? There is not only one answer to that question:
· Many rich people are born that way. Their parents were rich, so they never had any challenge to become rich for themselves.
· Many rich people became rich overnight when they inherited a fortune because they were listed in the will of a rich person. When that person died, the other get rich, that’s it.
· Other people have become rich because they played games of chances like lottery or casino and they won.
· Some became rich because they built a business and put a lot of time and efforts and they were successful at the end.
· Some did put some money in some wise investments and became rich over a longer period.
· Some people are simply lucky, and they become rich because they were at the right place at the right moment.
· Some people became rich because they married another rich person.
Many people, many ways to get rich. But then, what do they all have in common? I thought about it for a long period of time. I did some searches and read a few books. But that did not entirely answer the question.
I finally came to a simple conclusion on my own: they all have stock markets shares. The stock market has been a steady stream of income since its inception. The average annual return has been 15% in the last 100 years or so.
Let’s image it. You buy stock options for 10,000 $. One year later, you stock options should value around 11,500 $, if you are able to get the same returns as the average markets. If you leave the money there and make no other deposit, then you would have about 20,113 $ at the end of 5 years. See for yourself.
Basically, if you can follow the average annual returns of the stock markets, you would double your money every 5 years. That’s impressive! If you add money each month, the profits then explode, literally! Let’s see how much money it would be after 25 years, without adding a cent to it.
That is much more impressive! Then, add another 10 years to it and the total goes over 1,300,000 $! Which means that if you take 10,000$, put it on the stock markets and follow the average 15% yearly return, you WILL become a millionaire over your lifetime.
Let’s say you do it while you’re 20, then you would be a millionaire at 55, no matter what! That would probably not be the case if you would put it into other types of investments.
A few years back from now, I decided I would do like the rich people do and invest some money in the stock markets. My only problem was to find the money to start investing. At the time, I needed every cent of it to live because of choices I had made in the past.
I finally managed to put 2,000 $ in the stock markets. Unfortunately, I was a newbie and knew nothing of the stock markets. I thought I would just buy something, keep it forever and make 15% return each year.
Some of you must be laughing by now. The years went by and I did not have a 15% annual return on my stocks. I lost almost 50% of my value over a 2 years period. I missed the fact that if you profit exponentially when things go the right way, you also loose exponentially when they go the wrong way!
Then I almost concluded, like most people trying to make money out of the stock markets: you need more money and knowledge to be able to make 15% or more annual return on investment. Or you must get at least 100,000 $ to invest. Then, brokers will provide you a portfolio manager to help you out.
I paused the stock market project and took some basic courses telling me how I should invest wisely. Not expansive ones but more like eBooks and blog advices. I put back 2,000 $ back into it and tried again. Then, at times, I would make incredible returns and incredible loss also.
It took another 2 years to learn how to get it right. So, I recently started over and put 5,000 $ in it. I almost doubled the amount in a few months. Remember I told you that you’re supposed to double your money every 5 years if you will get the average market returns yearly?
How did I manage to double the money in less than a year? I made lots of tests and put them to work, looked at the results, adjusted and tried again. My new model now looks quite stable even if nothing is guaranteed.
The most important part is that I have come to a model that I keep adjusting every few days. So, I must take care of it. Then is no such thing as making money on autopilot and never care about it.
Right now, my daily target is making 0.2% each day that the markets are opened. It looks small, but at the end of the year, if it would make a global return of almost 60% a year! More if I put money in every month.
If you calculate it over a 5 years period, the total is very impressive. You would go from 10,000 $ to more than 139,000 $ without adding a cent to it. Then, you can speed the process by adding money monthly.
If you could be adding 1,000$ of stocks each month, that means you would invest another 60,000 $ over 60 months (5 years). It would lead to a total investment of 70,000 $. At the end of the 5th year, you would get more than 345,000 $ in stocks!
Now, if you remember it, my target return is of 0.2% per day. And the return of today has been 1.91%! Nearly 10 times my target. Of course, it is not like it every day. But since I made a RESET on the counter, I am largely over 0.2% of average daily return.
I keep my target to 0.2%, because I think it is possible to match it every single day, unless the whole market plunges. Then it keeps me motivated.
This is one of the income streams I have established toward wealth. What are yours?