Eric Calica shares his proven tips for you to start your investing journey today.
Life is full of uncertainties. Amid the uncertainties, it is important to have a form of certainty to make our life smooth. We cannot see what life has planned for us, but we can prepare for the unforeseen as much as we can. This can be achieved by financial security. Financial security can be attained to an extent via jobs. But only one source of income today is not enough for stability. You cannot rely on your active income to help you in catastrophic events. COVID-19 serves as an example of where so many jobs were laid out.
This raises the idea of side hustles. To help you feel secure, Eric has shared some tips about the stock market and investing to make things easier for you.
Eric Calica is an individual who has transformed his life. His life began from the military and transitioned to becoming a successful entrepreneur and investor. His self-taught experience has made him $100,000 in his first year of business. Eric has also ventured into real estate, flipping properties and building a diversified portfolio. He is a self-made man. Through various trials and tribulations, he now understands the stock market and brings results.
Eric shares the following tips, especially for beginners, to kickstart their investing journey and build a side income for them.
- Right Time - "There is no such thing as the right time. Start as early as possible" he suggests. No matter the amount you have to invest. Every fractional share counts just like every single drop of water contributes towards filling a lake. Rather than spending $5 every day on a coffee, put that into a regular index fund.
- Companies to Invest in - Instead of looking for newer companies, look for companies which you are familiar with. For instance - If you wear Nike, invest in Nike. It is important to start with a company that you believe in.
- Value over quantity - Buying 2 shares of a company as big as Costco for $500 each could be more valuable than buying 500 shares for $2 each. Both will cost you the same but overlooking the value of the company whose shares you are buying is a big mistake. There's a reason one stock is $500 and the other is $2.
- Risk Tolerance - If you have low risk, invest a bulk (at least 50%) of your money in index funds like VTI that capture the whole market. You can later branch it into companies like Amazon, Google, Costa Coffee, etc. By doing so, your portfolio will become stronger and you will have a great foundation built. To take more risk, invest a little more of your money into more individual stocks than index funds.
- Speculation over Facts - A common mistake, in the beginning, is trading stocks based on emotion and belief. Current statistics are often looked upon here. For instance, When Elon Musk decided to start tweeting about Dogecoin, imaginations were going wild with "what-ifs" and young investors spent fortunes without anything backing it. The key word here is 'what if''. Nothing being declared and investing without making a logical choice is a big standard error.
- Compound Interest - Invest in dividend-paying companies like ABBV. Reinvest those dividends and earn compound interest on them. Compounding all your money can help you earn money in a much more assured way.
These tips are the beginner's guide to making safer and more fruitful choices while investing. Eric's YouTube channel is also sharing the sources to help you find out the market's state, tips to reduce the risk, and how he made a 6-figure Amazon FBA business.
Eric is a firm believer in 'Reality is the reflection of belief'. He feels that one should be patient and consistent enough to invest and gain effective returns from the stocks. Research every stock before investing, don't just follow your guts, follow logic as well and keep investing consistently.