What if you could turn tiny amounts of money and grow them into massive gains? Would you be willing to invest $5 per day if it lead to total financial freedom? If so, you’re going to love today’s article on “Beer Money Investing.”
This is a simple strategy where you maximize the power of compound interest, turning your spare change into a small fortune.
I’ll explain how beer money investing works, and show my own personal system for it.
What Is Beer Money Investing?
What would happen if you lifted weights for 20 minutes a day? You’d start building visible muscle with two months. And you’d look athletically fit by the end of your first year.
That’s because your tiny investment of 20 minutes per day compounded, leading to bigger and better physical gains.
There’s a simple formula which works for anything (be it health, wealth, or mastering a new skill):
Small consistent actions + Time = BIG RESULTS.
This principle is what the entire beer money investing strategy is built around.
I’ll explain.
Beer money I works like this: You set aside $5 per day (every day) and put this money into a high yield savings account, or use it to buy revenue producing assets.
In either case, you’re money starts working for you, creating passive income as it generates interest.
Here’s some basic math:
Saving $5 per day adds up to $1,825 in one year.
Put that money into something like a CIT high yield savings account and you’re making 2.25% annual interest.
That’s $41 per year.
Might not sound like much, but now imagine that you save $5 per day, every day, for 10 years.
That 2.25% interest rate now pays you $516 per year. Even better, you’ve earned over $4,600 in interest during your 10 years of investing!
And that’s just from parking your money in an FDIC insured savings account. About the safest investment you can make.
How To Accelerate Your Returns
Maybe you want more money in a shorter amount of time. That’s completely doable.
All you need to do is save more, or invest in higher risk assets.
Personally, I recommend dividend producing Exchange Trade Funds (ETFs). These pay you a small quarterly return just for owning them.
Here’s my recent payment from owning 220 shares of the Vanguard High Dividend Yield ETF.
$162.54 just for holding shares of this asset. Pretty good!
If you’re curious about investing like this, here are a few funds I recommend:
- VYM – The Vanguard ETF I mentioned. They offer consistent payments from a trusted company, plus the management fees are incredibly low.
- SPHD – This ETF pays monthly dividends. Perfect for growing your holdings as fast as possible.
- NOBL – An incredibly safe fund made up of companies which consistently raise their dividend payments.
If you’re using the beer money investing method, I suggest buying your ETF shares through the Robinhood App. There’s no commission fee, plus you’ll get a free stock when you sign up through this referral link.
Speaking of investment platforms here are some other options I recommend.
Best Tools For Beer Money Investing
So, you understand the beer money system and want to follow it. But, you aren’t sure how to get started or what investment tools to use.
Well, don’t worry.
Here are some of the best resources for getting started.
- Best Book For Learning More – The Automatic Millionaire.
This is an easy read detailing the exact steps necessary for building up a 7-figure retirement account. All off tiny daily savings.
- Best Savings Account – CIT.
How would you like a safe, stable investment offering a guaranteed 2.25% return?
With a CIT high yield savings account you’ll get all this. Deposit $100 a month and enjoy a top tier interest rate of over 2%.
This is an excellent low-risk opportunity for growing your wealth.
Click here for more information.
- Best Investment Platform – Robinhood.
Robinhood is a game changer. They offer commission free trades, saving you a small fortune in fees.
I love this app and use it constantly, investing extra income into high dividend ETFs.
Bonus: Sign up through this link and you’ll get a free stock.
Anyway, those are my suggestions. Now that you have the tools and the information, it’s time to get started.
See you later, future millionaire.
