Hi! I’m Peter, and welcome to How to Invest HQ!
I’m 27, work from home online, and own a smorgasbord of websites that generate a full-time revenue. I also work as a consultant in all areas of digital marketing. However, about 5 years ago, I was working your typical entry-level full-time job and had a mountain of student loans which seemed insurmountable. Since then, I’ve used my internet based-businesses to pay down my debts and now am looking to diversify my assets by getting into the stock market.
While I have only been active in the market since 2009, you can see by going through my old posts that I have identified many real winners in the market. For example, back in December of 2012 I said it was finally the right time to buy Facebook (FB). As of October 2013, that stock has almost doubled from the price at the time of that post.
My Story and How I Got Here
In winter of 2008, I graduated from college. Like many who graduated during this time, I had a lot of student loans and jobs were scarce. I had good grades and plenty of work experience, which did make getting a job was not very difficult. The problem was that based on my salary, I had no chance of realistically paying off the student loans on my undergraduate degree, let alone saving any money. After all, tuition has nearly doubled since 2000 whereas salaries have barely kept up with inflation. I knew I had to do something different if I ever hoped to retire by a decent age.
I knew I always wanted to run a business and I was willing to put in the time in the evenings and on weekends to help pay off my debts, but I didn’t even have the money to buy into a business.
Eventually, the possibilities of running an internet-based business dawned on me. Even though the internet was something we all use every day, for some reason I never realized until recently that you can start a business online for less than 100$ or work for another person with no capital investment at all. If you have the time and are willing to put in the effort, you can make money online. I’m not saying it is fun – a lot of the time it can be very tedious – but you do not need to have money, be a genius or even a tech-savvy person to start making money online.
I started working on my lunch breaks, nights, and weekends to create content and build up my websites. Eventually, my business grew over time and I ended up putting more and more time and money into it until I was able to generate a significantly larger income from the business than my old job.
I know that a lot of people, especially young college grads, are shackled by the ball and chains that are student loans. Older adults may be under the weight of a large mortgage or credit card debt. As a result, I will be also sharing with you some ways to make money online that you can use to make money to pay down your debts and ultimately invest into the market.
Why an Investing Website?
Even though I am completely new to the stock market, there are actually quite a few good reasons for that. I have always been interested in stocks, but have previously never had the money to invest in them. Now that I have paid down my debts and set aside money to invest and have done some initial homework, I’m ready to get into the market.
According to Stephen Covey, author of The 7 Habits of Highly Effective People, we learn much more effectively and actively when we learn new information with the goal of teaching it to others. While I didn’t care for the majority of the book, I found this particular gem resonated with my experience. By reading information and trying new strategies with the intention of sharing it with the readers, I know I will be more motivated to read when I have to phrase concepts in my own words for this blog. I also know I will be more objective and honest when evaluating my stock picks in a public forum.
Speaking of evaluating investments and trades, this website makes the perfect sounding board for defending stocks I am actually interested in owning. Since I’m not a professional money manager (and have no intentions to be), this practice similar to Peter Lynch’s two minute drill recommendation – I get to defend the stocks I like and may actually add to my portfolio in a sensible way open to constructive criticism or approval.
Finally, over time I want to increase my stock holdings just to diversify my assets. Prior to this, practically all of my worth is in either websites or cash. Businesses are not guaranteed to produce revenue a few years or even a few months from now. On the internet, where things evolve extremely quickly, the rapidly changing landscape can easily wipe out established businesses and build up new ones overnight. It only makes sense not to re-invest everything back into a business, if only because currently unknown technologies could drastically alter the viability of my business model.
I like stocks for the same reasons I like online businesses – everything can be maintained virtually, they are easy to sell, and you can put as little or as much money into them as you want. You can buy into or out of stocks quickly, just as you can build websites or sell them at auction. You cannot dissociate so easily from other types of investments like real estate or a physical business. The liquidity makes stocks fit into my lifestyle perfectly.
Stay Tuned for More
Over the coming months (and hopefully years), I will be adding regular content to this website as well as building up my stock portfolio. Check back daily for new articles, and feel free to comment or use the contact form to email me any questions!