🚀 Earning vs. Investing: The Smart Path to Growing Your Portfolio
👋 Hi finance enthusiasts and fellow investors!
Welcome back to my weekly investment newsletter! Today, we're diving into the rarely discussed topic of making money vs. investing. Let's break it down with a simple example.
If you're just starting out and have a small investment portfolio, say $5,000, it's easy to get caught up in the idea of maximizing returns. But even if you manage to double your return from 50% to 100% per year, that's only an extra $2,500. Sure, that's nice, but think about the time and effort you'd have to put in—and don't forget the risk. Calculate your hourly rate and you will realize that this is not the best use of your time.
Instead, focus initially on increasing your active income and saving more. This strategy can get you ahead faster than chasing a few extra percentage points. Work a little longer, take on a second job, and save more. The money you earn and save now can be invested to build a larger portfolio later.
The most important realization for this week: focus your energy on earning more and saving diligently. This will create a solid foundation for smart investments in the future.
Let's get active and build our wealth step by step!
Wishing you all a fantastic weekend and a secure financial future!
Cheers!
Stefan
Co-Founder of CryptoExplorer & InvestmentExplorer