(NOT ADVICE, just a formulated view)
YO MY SLIME! A'ight, if you've been paying attention, for my first magic trick, lemme show you how to run up a bag quicker...LMAOO...
YOU! RETAIL GUY! YES YOU! Yo lemme chat to you real quick cuz, listen yeah swing that check over here real quick...
Let's see, £1300... OK, it's a bit of a sticky one still...I can work with this...
Your rent is like what, £450? Ok, that brings us to £850. Utilities (Bills) be like £120? Ok, £730. Oh you're single? OK, that brings the food bill to about £130 pcm? Calm... Oh sh*t, forgot about the car...Insurance...ok...£150....OK, so we're left with about £450 to play with...Another £50 for "personal reasons"...Right so that's £400, still minor G...
I want you to invest 10% of your overall monthly income... so that's £130 but for you £100...LMAOOO
Overall, you're still at £300 for miscellaneous expenses...MINOR!
OK, this is the bit where I want you to pay attention...I want you to spend around 5 hours a week, looking at different investment vehicles... For the purpose of the blog, we'll just say the stock market... Remember how I told you not to splash it all in one like it's black Friday? OK, interestingly there are Exchange Traded Funds (ETF) you could also look into... There's this lady called Cathie Wood who manages a fund called Ark Invest, which there are all these different kinds of funds but all of which are focused on high-growth innovative companies revolutionizing the industries of finance, tech, and genomics, by creating an impact on all sectors of the global economy...till date, her avg. portfolio returns range from 40% up to 66%! Considering the S&P 500 only has an average return of 8-10%. RESEARCH! RESEARCH! RESEARCH first tho! Ay listen tho, you know the best part? Unless you're mirroring the portfolio yourself, portfolio managers will do all the work, so you don't have to start venting about rebalancing...
Oh, you wanna look at the math? KMT...Fine. Let's just keep the avg at 40%.
OK So if you were to use the future value of compounding (in finance) ...
Year 1 = No Compounding but if you compound 40% subsequently for 5 years... so still investing 1200 p/a provided ROI rate remains around that ballpark...Provided each cash flow is separately compounded each year...
So if we were to extrapolate that data, in 5 years you would've turned £6000 into £18,388.61 (Formula in previous posts), adjusted before inflation. AGAIN, this is an example...please carry out your own research before you get gassed...
OK, now stocks/funds are one way...now find the other 2 man's tired LMAOOO... SEE YOU NEXT WEEK, BLESS UP MY G!