Traveling is full of adventure, memorable experiences, margheritas, romance, new opportunities, and bliss. You either make it to that landmark you’ve always wanted to see or you discover something incredible. But traveling is also expensive. Even with incredible fare deals and extreme budgeting, you still need money. Sometimes a lot of it.
I work hard like anyone else, but with that work comes expensive maintenance costs. Reliable transportation, student loan payments, gifts, it all adds up. That’s why passive income can be a huge help when you’re planning that next trip to Jamaica or Sweden.
Here are three steps to earning enough dough through investments, even if you have no experience in the market.
You need a base sum to set aside for investment. Easy for some, difficult for all of us 🙂
To make any significant gains (without taking wild risks), you need at least $1,000. Hoping that you would grow your fund by 10%, this could bring back a return around $100. Ideally you should be able set aside $3,000-$5,000. A 10% return on $5,000 brings you a beautiful $500.
This is really the hardest part. If you’re having difficulty saving, you need to do one of two things: cut your expenses or grow your income.
2. Download Robinhood
Robinhood may be your best avenue for one simple reason: no commissions. A commission is a fee charged to you for buying or selling a security (stock/bond/mutual fund). E-trade charges $6.95 every single time you buy or sell. I’ve been suckered into paying over $40 in a day just to get my money back.
Robinhood works on selling their premium plans rather than commissions. And you don’t even need the premium plan. I’ve made over $620 using the standard free Robinhood platform. Pair that with a vacation package deal, your trip is paid for!
3. Geek Out
Making a good investment takes some research and evaluation. Here are some good questions to ask before buying a stock:
– How much has it gone up in the past year? (As opposed to the past few months. You can buy something while it’s down, but look at the trends over the past year.)
– What is the risk vs. reward? In Robinhood, there is an indicator telling you the volatility of a stock. High volatility may mean more risk.
– What are others saying? Check Seeking Alpha, StockTwits, Yahoo Finance to see various perspectives.
– Buy various stock to diversify your portfolio. One small loss in a mix of investments is much better than banking on one stock’s performance.
– Use investopedia to look up terms you are unfamiliar with.
– Don’t panic when a stock is down. It may take a while for it to come back, but they usually do come back (unless crashing).