04/13/2021
To build wealth you have to take advantage of short and long term investments.
Some people invest in the stock market and act as if it is a short term investment, and this is fair from the truth.
In our opinion, the mindset you must have for stock investments should be a long term investment with a mindset of holding for 10 years or longer... think of it as investing in decades...
Your short term investments are your cash flow producing investments, businesses, personal income sources, side projects, etc.
In my opinion you should use these short term investments and other forms of cashflow to live your everyday life and the lifestyle you want to live.
In addition to funding your lifestyle with your short term investments, you should be using them to add to your long term investments with the cashflow that you have left over at the end of each month.
If you do a formula similar to this you won't need to look at your stocks as short term investments, which will stop you from over trading your portfolio and eating up profits.
Long story short... don't take money out of stocks to satisfy your short term goals, as stocks are long term investments...
If you need more cash flow for your short term goals or lifestyle then find a way to increase your cash flow by taking on more side work, finding another hustle etc...
If you get in the mindset of investing in the stock market for decades, you will be very happy with the returns...
If you day trade your profits away and hurt your positions by doing so, in 10 years you won't have the returns you should have...
The choice is yours 🙂