In America, we are taught to consume and perpetually spend money but never to invest long-term to build wealth. Our entire capitalistic economic system is built on consumption. We are besieged by advertising and endlessly marketed to across all media platforms (social media, television, e-mail, texts, regular mail) encouraging us to consume. Buy Buy Buy! A lifestyle of consumption will leave you with a closet full of products and a massive debt load with no savings and no assets. If you want to lead an economically prosperous life then you have to transform your mindset. Stop spending and start saving money!
The positive of this Coronavirus crisis is that it is teaching individuals to rethink their financial management priorities and get their financial life in order.
Start Saving For The Future
The key to building wealth is choosing how to properly allocate your resources. You have to make wise decisions when it comes to spending your money. Make a concerted effort to become an investor and saver so that you have a massive cash stockpile with assets to lean on during times of economic crisis. Start by changing your thinking.
Everyone has something from Louis Vuitton (belts, wallets, purses, shirts, pants), Gucci, Prada, or some other luxury designer but very few people own the stock. Before helping to enrich luxury designers, make yourself rich. Buy shares of the companies that make the products that you own before buying the products.
Shares of companies like LVMH (Louis Vuitton Moet Hennessey) have doubled over the past year meaning that you could have invested in the stock and used the profits to buy a LV bag or LV shoes and still be building wealth by owning the stock. Invest in the company before continually buying products from the company.
Start buying shares in the companies that you purchase from the most so you can start making money off yourself.
Here are 5 Companies that everyone uses and should own at least one share of:
Everybody shops at Amazon! Amazon is the largest retailer in the country and is an ecommerce behemoth with a limitless future. The company sells products (Amazon.com), produces content (Amazon Prime Video), offers cloud computing (Amazon Web Services). Amazon has its hand in anything in the digital marketplace.
If you rummage through your closet, it is highly likely that you will find some Nike merchandise somewhere. The Swoosh has penetrated the global marketplace and has become an iconic brand. Nike shoes, sweats, and hoodies are always in style. The brand is vintage and will be around for at least the next 50 years.
Facebook is the riskiest company on the list but most adults rely on the social media giant for connecting with others. Facebook’s original platform Facebook.com has seen slowing growth while its Instagram and Whatsapp platforms offer the company continued growth potential. As digital advertising continues to accelerate, Facebook should be one of the major beneficiaries of these increased ad dollars over the next decade.
Walmart is the leading traditional retailer and has more foot traffic than any other retailer. the company has just become involved in ecommerce offering online ordering and delivery. Walmart is a cash cow company that should continue growing at a steady pace and reward long-term investors with dividend income on a quarterly basis.
Square is still an emerging tech company and is the parent company of Cash App, Storehouse, Fastbite, and Kili. Square has recently become involved in offering all types of financial transactions including mobile payments, online investing, and payroll processing. Square’s founder Jack Dorsey is a visionary who is determined to build Square into a technological giant.
Those are just a few examples of companies that you can invest in. Start making a list of companies that make quality products that you regularly purchase who have a future that you believe in.
Also, read the following articles to learn how to start saving: