2 answers
ISHAAN
Student
Ranchi, Jharkhand, India
1
Question
Asked
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i want to earn money
how to earn money if i am a student online #money
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2 answers
Muhammad Shao
Pipeline Integrity Engineer - Onshore Water Crossings
19
Answers
Houston, Texas
Updated
Muhammad’s Answer
One word answer: "Invest"
Investing is how you take money, and accumulate interest/profit on it. The goal is to make the investment compound, so you can hit the exponential gain curve & make a lot more money. Ultimate goal is to make your money work for you, rather than work for the money (in the long term).
Here is some guidance I provided to another user regarding investing:
- Save money. This is definitely the first step for investing.
- Determine your investing strategy (know yourself). Are you okay with loosing the money you have invested? Do you want a guaranteed return? When do you want the money? Is it important that the money be liquid?
- Now that you have the money and know yourself you can look at potential investment option:
- Retirement accounts: these are relatively safe investments with an approx. guaranteed return, but your money is locked till retirement. Some options are 401K & IRA plans.
- Trading stocks: I would advise against day trading. When you day trade you are competing against some serious traders, who may even have access to some serious computing power (super computers) to predict market trends. Even with all that, you're never guaranteed a return & it's very high risk. Day trading takes a lot of knowledge, experience and willingness to take risk. On the other hand, as a starting point you may look into ETFs that track the entire market e.g. S&P 500. Lastly if you want to dabble in actually trading stocks, then research the industry that interests you most. Figure out what is going on in that industry.....if the prices are low, high (buy low, sell high). e.g. due to the pandemic all travel, airlines, malls, oil industries are down.....but one can speculate that they may come back in a few years. Once again, this isn't entirely day trading, you'd be holding your position over a longer time, trying to predict when the prices will go high & sell to make a profit.
- ETFs are similar to mutual funds, but you may choose to also invest in a mutual fund directly. These may require a commitment to keep the money in the fund for a specific time and may have cut-offs for entry.
- CDs: These are issued by the US government and have a guaranteed return rate after maturation. These are the least risky but also have the lowest historic return.
- Physical assets or business. This is the last option I can think of. Instead of betting on the market, you can choose to bet on yourself, a friend or real estate. Real estate is relatively high right now, due to shortages in lumbers. Once again, knowing the industry helps make a decision on buying low/ selling high. Some folks even buy and rent etc. But all this may require a much larger capital than the other investing options.
Hope this summary helps. This should help you get started on your research. Lastly, I'd say once you've decided to invest......DO IT. A lot of people think about investing but never actually commit. A lot these things, you'll only pick up from experience. But, always invest money that you are willing to loose or loose partially. Always keep a certain level of saving separate from your investments to sustain you through the downturns/losses.
Investing is how you take money, and accumulate interest/profit on it. The goal is to make the investment compound, so you can hit the exponential gain curve & make a lot more money. Ultimate goal is to make your money work for you, rather than work for the money (in the long term).
Here is some guidance I provided to another user regarding investing:
- Save money. This is definitely the first step for investing.
- Determine your investing strategy (know yourself). Are you okay with loosing the money you have invested? Do you want a guaranteed return? When do you want the money? Is it important that the money be liquid?
- Now that you have the money and know yourself you can look at potential investment option:
- Retirement accounts: these are relatively safe investments with an approx. guaranteed return, but your money is locked till retirement. Some options are 401K & IRA plans.
- Trading stocks: I would advise against day trading. When you day trade you are competing against some serious traders, who may even have access to some serious computing power (super computers) to predict market trends. Even with all that, you're never guaranteed a return & it's very high risk. Day trading takes a lot of knowledge, experience and willingness to take risk. On the other hand, as a starting point you may look into ETFs that track the entire market e.g. S&P 500. Lastly if you want to dabble in actually trading stocks, then research the industry that interests you most. Figure out what is going on in that industry.....if the prices are low, high (buy low, sell high). e.g. due to the pandemic all travel, airlines, malls, oil industries are down.....but one can speculate that they may come back in a few years. Once again, this isn't entirely day trading, you'd be holding your position over a longer time, trying to predict when the prices will go high & sell to make a profit.
- ETFs are similar to mutual funds, but you may choose to also invest in a mutual fund directly. These may require a commitment to keep the money in the fund for a specific time and may have cut-offs for entry.
- CDs: These are issued by the US government and have a guaranteed return rate after maturation. These are the least risky but also have the lowest historic return.
- Physical assets or business. This is the last option I can think of. Instead of betting on the market, you can choose to bet on yourself, a friend or real estate. Real estate is relatively high right now, due to shortages in lumbers. Once again, knowing the industry helps make a decision on buying low/ selling high. Some folks even buy and rent etc. But all this may require a much larger capital than the other investing options.
Hope this summary helps. This should help you get started on your research. Lastly, I'd say once you've decided to invest......DO IT. A lot of people think about investing but never actually commit. A lot these things, you'll only pick up from experience. But, always invest money that you are willing to loose or loose partially. Always keep a certain level of saving separate from your investments to sustain you through the downturns/losses.
Thank you, this is really helpful.
Sphesihle
Terrell Dinkins, MBA, ChFC®, RICP®
Investment Advisor
26
Answers
Jonesboro
Updated
Terrell’s Answer
Hello Ishaan,
Create a product or service that you can sell online then invest a portion of your profits in good quality companies and put the remaining portion of your profits back in your business. As your business revenue grows, you will be able to pay yourself more. Always put back in your business to improve it.
Best of luck to you!
Terrell
Create a product or service that you can sell online then invest a portion of your profits in good quality companies and put the remaining portion of your profits back in your business. As your business revenue grows, you will be able to pay yourself more. Always put back in your business to improve it.
Best of luck to you!
Terrell
I appreciate your support, Terrell
Sphesihle