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How much money do you spend shopping every month? If you’re like most single, working women, you may spend so much money shopping that you have no idea how much you spend.
What’s your vice? Are you shopping for clothes, shoes, jewelry, groceries, purses, etc.?
Have you ever thought about shopping for assets?
If you haven’t assessed your assets, now is a great time to do so. Instead of accumulating extra baggage in your home, you can start purchasing assets that will provide you with more money and time to do the things you love.
Here is the “Wealthy Woman’s Guide to Shopping for Assets”:
Be on the Lookout for Sales
How much are you willing to pay for a certain pair of shoes? You’re probably willing to pay more for some shoes on the shelves because of the wearability, style, comfort, brand, and other various reasons.
If you notice that your favorite pair of shoes, which have a retail price of $249, is now $79, what do you do? You think about the price trend over the last year and realize that $79 is the cheapest price it has ever been.
This might be a great time to buy if you’ve had your eye on these shoes for quite some time. You’re 200% sure that you probably will never find those shoes at that price again. Instead of buying one pair, you decide to buy two.
Start thinking about assets the same way you think about the shoes that you can’t live without. If you see a good price for the asset, you should consider buying it.
How do you know if a stock is a good price? In other words, how do you know if the stock is undervalued?
Think about this: when the economy was doing good, what was the price of the asset? Now that the economy is not doing so well (a period of a market correction), how much is the asset now? This is a simple test to determine if the asset is undervalued. There are more sophisticated ways of calculating the value of a stock but starting with this method will give you a quick reference that will guide how you think about the current price of a stock.
If an asset is undervalued, you should buy as much as you can. This is the Warren Buffet way of investing.
Get Rewards for Purchases
Do you have a store rewards card? Stores reward customers for making purchases. Every time you go to the store, you can swipe your rewards card to get points for your purchases. When you have enough points, you can redeem your rewards for free gifts, money, or discounts.
It works the same way when you purchase shares of ownership in a company (stock). In fact, it’s even better than store rewards points. Why? Because you can get monthly or quarterly rewards and then sell the asset at the current market value.
How does this work?
Let’s say you decided to buy shares of Target Corporation (TGT). The price per share is $75. You just got your year end bonus so you buy at least 10 shares.
Because you purchased shares of stock, you will receive money if the company declares a dividend. Dividends are the money that a company pays you for investing in them; it’s a portion of the company’s earnings. Most companies pay dividends quarterly. The amount of money you receive every quarter depends on the number of shares you have.
The more shares you buy, the more dividend income you receive. This is one shopping trip that has a lifetime of rewards.
Be Aware of the Return Policy
A seasoned shopper makes sure they understand the return policy just in case they see another “must have” shoe while walking out the store and want to make a quick return. If you buy shoes at the store, you may be able to return the shoes within 30-60 days. Once the return period has passed, you are not eligible to return the shoes. Some stores have a “no return” policy or sell shoes at a “final sale” price and do not allow you to make a return even if the shoe turns out to be less than you expected.
The “return policy” is completely different in the stock market. Unlike the retail market, you don’t have a limited time to return your merchandise. If you buy a stock and don’t want it anymore next week, or even next year, you can sell it. You never have to keep a share of stock you don’t want. You can always sell shares of stock within the normal hours of operations of the stock market. It’s even better to know that stocks won’t take up space in your home; it’s all managed electronically.
Find out the Fees
When you make a purchase at the store, you pay a sales tax. When you buy assets in the markets, you may pay a commission fee.
Some apps, like Robinhood, don’t even charge a commission fee. If you’re ready to set up an investing account and get started, click here to sign up for a Robinhood account. This link will give you access to claim a free stock when you sign up.
Don’t Buy the First Thing You See
A shoe may look good but it may not be the best shoe for you at that time. You might want to try it on and compare it to other shoes on the shelf before you make a purchase.
You should apply the same, or even more, due diligence to the stock market or any other class of asset you want to accumulate. Do the research or find a trustworthy newsletter that can provide you insights that will help you make your decision.
When doing your research, here are just a few things you should consider:
- company leadership
- future plans
- industry specialties
- niche market
- past performance
If you are interested in newsletters that provide stock analysis, market research, and income strategies, please complete the contact form below.
Disclaimer: Wealthy Women Daily is solely education and informational, and is not intended to give investment or trading advice of any kind. This article does not serve as a recommendation of stock to purchase. Not all asset classes are suitable for all investors. Wealthy Women Daily is a research academy that provides you with the data and analysis you need to make an informed investment decision.
