Robinhood – Learning To Invest

If you’re like me, you’ve got lots of questions about investing, financial literacy, mutual funds, 401ks, 403bs, IRAs, Savings Accounts, CDs, financial institutions, and so many other money matters. I’ll preface with this – I am no expert and you should do more research on the subject.

With that being said, here’s a few things I’ve learned over the last 4 months from using an app called Robinhood. Robinhood is an investment app that allows you to buy and sell stock and they make it ridiculously simple. In oversimplified terms, it’s a playground that allows you to learn how investing works while actually investing. I started using the app with $50. I bought two shared of Kroger Stock for about $20 a piece, which left me with about $10 of buying power. When payday came around, I added $50 more dollars and bought three more shares. All in all, my portfolio (collection of stocks) was not diversified (different stocks), but it was doing pretty well well. My initial investment of $100 turned into $105 dollars over two weeks. My investment amount increased because the stock price increased. For me, investing is about the long game and not immediate results.

After reading that sentence you may be thinking, “you only made five dollars in two weeks? Why are you giving me financial advice?” I’ll put it this way – each share I owned increased in value by one dollar (Not all stock will increase this much or this quickly, if at all. You have to research the trends and decide if you want to keep the stock for the long-term or the short-term). If I owned 50 shares, my total dollar amount would have increased to $150 in two weeks. Without doing anything more than spending a few bucks on the front end, I would have made $50, which would be half of my initial investment. If you make an extra $50 every two weeks, that becomes $1300 over the course of the year. If you keep that same pacing, over 10 years, that becomes $13,000. In 30 years, it becomes 39,000. No imagine doing that with 5 different stocks. You’d be looking at $195,000. For me, that’d be a $195,000 of income from investments alone by the time I was 55. This doesn’t include a retirement fund, salary from a job, or other streams of income.

As your stock matures, you get a dividend, which is a payment for owning the stock. Another example: I own a few shares of Texas Instrument. Remember the $99 dollar TI-83 Calculator that was needed for every math class you ever took? That company. It paid dividends a few weeks ago, and it was something like $6.28, but that dividend wasn’t an increase in the value of the stock. It was payment for owning part of the company (a small part, but part nonetheless). That was money paid to me as an owner.

I’ll be very clear. You are using real money that you could potentially lose, but that’s when you determine how much risk you can handle. All the stocks, I own have low volatility, which basically means that they don’t fluctuate, or go up and down, all that much. You have to actively check on things. I tend to look an hour after the market opens in the morning around 10:30, between noon and one on my lunch break, and then again around 3pm before the market closes. Setting those standard times keeps me from checking constantly throughout the day.

Bullet Points:

  • You’re using real money.
  • You can start with any amount on Robinhood.
  • Do your research.
  • Start with a small amount to get used to it.
  • At first, you’ll feel a little nervous, but eventually you get used to looking at it.

 

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A Hope for 25

“25 seems young, but important.” – Evelyn Lauer

Turning 25 feels like a beginning. What are the clichés? Turing a new page. Starting a new chapter. I don’t know if it should feel as big as it does, but quite frankly it feels like it should be an important time in my life. When you’re five or six years old, meeting someone in their 20s felt like meeting someone who had been alive forever. You think, that’s so far away. I’ll never get to that point. I’ll be young forever. Then you wake up at 25 and realize just how ridiculous that notion was.

I find myself feeling a variety of things – excitement, joy, nostalgia, hopefulness, uncertainty, pride, and gratitude are among the few emotions that come to mind. The last 24 years have been full of experiences. I’ve traveled a little bit. I’ve gotten a few degrees. More important than both of those things, I’ve made some really important relationships and I’ve started going after my dreams. I’ve learned that the people are just as important as the experiences. In thinking about what I’ve experienced, all I can say is that I want more. 

Let me clarify. My curiosity is at an all-time high right now, which means that I have to be particular about how I spend my time. I’ve read a few books and a lot of blogs about the 20s, and how they are supposed to be building or learning years. So far, that’s exactly what they’ve been for me and I want it to stay that way. I want to go more places. I want to meet more people. I want to learn more. I want to learn so much about what I want in a career. I want to learn more about myself. I want to set more goals and achieve them. I want to learn more from my failures and mistakes. I want to spend more quality time with the people I care about. I want more time to clarify what I want more of. I want to become more disciplined. I want more opportunities to give something good to the world. I want to build toward contentment and satisfaction. 

In the same right, I want less. I want less external pressure to do things traditionally, conventionally, or within the “perceived” timeline of others. I want less stress. I want less laziness from myself. I want less fear. I want less wasted time. I want less baggage. I want less drama and unnecessary worry. I want less violence in the world, less suffering.

I’m fortunate to be in a position to get most of the things I want out of life at this point in time. With the tremendous support of others, I’ve laid a solid foundation from which to launch. So, here’s to the big 2-5 and all that’s coming with it.

An affirmation of the five things I want for myself beginning at 25:

  • Deeper, more meaningful relationships w/family, friends, and Maggie (in no particular order lol) 
  • A better quality of life (physical & mental health, meaningful experiences, quality time spent in new places, financial security, and pursuit of new learning opportunities)
  • A commitment to service, travel, and generosity with time, skills, and resources
  • Contributing to the betterment of humanity through work, word, and collaboration
  • Exploration and personal growth

 

Growing Pains #16: And Beyond

Well… All is well that ends well.

If you’ve read this far, you have had a pretty intimate, authentic look into my life. Truly, thank you for journeying with me along the way. Sharing part of myself that I thought I would never share has been restorative to my spirit and passion.  I am both honored by and grateful for everyone that has read even one post.

I have a group of friends that I hold very dear to me. Each one knows who they are. No matter where we go, what we do, or how little we may see or talk to each other, we know that there is an “and beyond” that propels us deeper into friendship. I think about all the people who have help guide and shape my life – family, friends, barbers, mentors,  past teachers and coaches, passing strangers, and fellow travelers. I’ve learned a great deal from you all. Each of you has been a mirror. Each of you has in some way reflected exactly what I needed to see at the time I needed to see it.

After 24 years, countless experiences, a revolutionary change in myself, and 15 blogs, I am free to say that I love myself, I am earnestly seeking a more authentic self each day, and I invite others to love themselves as well. Regardless of what the world shows you, tells you, or thinks of you, you are significant, you matter, you have something to contribute, you deserve to feel whole. With a full heart and a peaceful mind, thank you for growing with me.

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Vincent