Monthly Investments Is Key!

Every month I put in $250 to $300 per month in my mutual funds and individual stocks.

In a year or 2 it is my hope to be able to give $500 to $600 per month and in 5 years it is my hope to be able to put in $800 to $1000 per month.

You see you never want to stay where you are at, you always want to grow and expect to be better off in the future. Always have an expectation for better.

Now, back to why it is in your best interest to invest monthly...

It is very important for any individual investor to add to your portfolio monthly. Why? 2 reasons #1 COMPOUNDING INTEREST & #2 COST BASIS AVERAGE.

Compounding Interest is the key to make any investment grow over time and faster. Basically its your principal and your interest combine and with more interest throughout your investment it will compound. Put it like this every time your investment is in a positive it will add to the principal.

When your principal increase and more interest follows you will be increasing your money at a faster rate than normal interest.

Compounding interest is the key to leaving a financial legacy and when you are adding every month you are not only increasing your principal you are also adding to the interest as well and making your money add faster over time.

Cost Basis Average is simpler because it means the average you paid for you investment per share. So, if you are adding every month and the market takes a deep or runs higher over time the average will make your investment great. Because, whether you get it cheaper or higher the compounding interest will still work in your favor.

Now of course if its lower it will work more in your favor but the truth is no one can time the market correctly. So, just adding monthly is your best action to increase your investments.

If you to do not $250 per month add $50 or $100 add whatever you can to help your investment grow.

I hope this makes sense to you because I do have a traumatic brain injury and what makes sense to me sometimes does not make sense to other people.

Here is a tip I am tracking a recent IPO of Everbridge and it is looking like a momentum stock and those stocks can do well over time. Checkout Twilio, Telsa, Amazon, etc.... no matter what the company do or not do the stock goes up.

I love to be in at least one or two momentum stock if I was able to get in before it hit higher.

So, be on the lookout for momentum stocks.

I may write a blog about just momentum stock.