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.

 

Advertisements

Forging New Partnerships. Transforming Communities.

guatemala

Photos Taken by Arturo – Mujerave Staff Photographer

There is something beautiful happening in the countryside of Guatemala in Totonicapán. It’s happening quietly, too. Lives are being changed by the work of a community based organization – Mujerave, which was created by Kody Gerkin, a former member of the Peace Corps. I learned of Mujerave (moo-hare-ah-vey) after sitting on a panel with Emily Gerkin Guerrant, Kody’s Sister. She spoke about her brother’s passion with great zeal, which prompted me to dig a little deeper. I knew I had to find a way to get involved after learning of the values, commitments, and goals of the organization.

Mujerave’s mission is to contribute to the alleviation of poverty, the eradication of malnutrition, and the reduction of preventable illnesses by empowering women through sustainable development projects in indigenous communities in the department of Totonicapán, Guatemala. As for the vision of Mujerave: Through increasing food security, expanding community-based education initiatives, and improving health-related infrastructure in underserved rural, indigenous communities in Guatemala’s Western Highlands, Mujerave’s vision is a Totonicapán less burdened by preventable illnesses, chronic malnutrition, and debilitating poverty.

In 2011, at the LeaderShape Institute, I was asked the big questions, “what would you do for the rest of your life if money and time weren’t barriers?” or “what are you doing today to make the world a more just, caring and thriving place?” These questions stayed with me throughout the week and for many years to come. I still ask myself those questions year after year. My vision, though extremely limited and inarticulate at the time, was to make a division-less world. Nearly 6 years later, I can explicitly say that even back then, it had everything to do with ending poverty, creating opportunities for others to have better lives, and working with and on behalf of the global community.

After a few bumps and bruises, failures and mistakes, I began to realize that I didn’t have to save the world on my own. I simply had to do my part to make the world better in my own way, as well as find ways to support others who were already working in other capacities, industries, and communities. This led me to Mujerave, as well as a philanthropic partnership. I’ve made a five-year commitment to support Mujerave’s work to reduce poverty, increase gender mainstreaming in policy and action, as well as aid in sustainable development.

Many women around the world are powerful stewards in their communities, yet they are still overlooked and underrepresented in places of power. Mujerave provides resources and a space for women to use their voices, wisdom, and experiences to make their communities healthier, improve economic stability, and much more.

greenhouse-1

To learn more visit: http://www.mujerave.org

Feel free to make a donation in support of the many projects that are currently taking place, as well as future projects.