What is Investment Subscription?

Making regular investments of smaller sums of money is one of the best ways to achieve an ambitious financial goal without feeling daunted by the task ahead it can also help you keep on track so you can reach your goal faster people tend not to invest in financial markets citing the issue of cash flow but these issues don’t tend to prevent people from enjoying subscriptions like internet service, gym memberships, and smartphone plans.

The simple explanation is that subscription services come with constant gratification when you subscribe to a service you can enjoy it right away. Investing is a bit different it’s a long-term game in which you might not enjoy the fruits of your labor for years or even decades making it hard to consistently shell out money to buy into the stock market.in this episode, we’ll explain the four benefits of treating investing like a subscription.

How To Start Investing In A Subscription Service.

1. Resist Overspending 

when you treat investing like a subscription service you’ll be paying yourself first meaning you won’t have as much extra money sitting around in your checking account tempting you to overspend after each paycheck hits you’ll begin to think of your investment contributions like a bill you have to pay to yourself rather than something optional you do only when you have extra money left over

2. investing becomes automatic

 Humans are creatures of habit when you treat investing like a subscription you’ll be creating a habit of investing once that habit is set it becomes almost effortless to maintain.

3. consistently build wealth over time 

successful investing is a long-term process by treating your investments like a subscription you’ll consistently build wealth over time setting the stage for a strong financial foundation in the future treating investments like a subscription works so well that many employees adopt this model with automatic retirement contribution plans where your contributions are deducted from your paycheck and put to work in the market automatically.

4. Dollar Cost Averaging 

Automatic investments of the same amount of money at regular intervals is another great way to implement the dollar cost averaging strategy and in many ways simply replicate what your workplace super contributions are doing but with the added benefit of the money being accessible for personal goals house deposit holidays education expenses unlike super, which is locked away until retirement. 

Since you’ll be less likely to make a purchase when prices are high and more likely to do so when they’re low, you’ll save money in the long run on the average cost of investing in various assets by adopting this technique. The most compelling argument for using dollar cost averaging is that it helps investors avoid the pitfalls of investing based on their emotions, such as greed or fear. This is especially important during times of market volatility when investors are more likely to succumb to the temptation to sell low and buy high or to become overexposed to certain asset classes during times of market prosperity.

How to start an investment like a subscription service 

As with any other rewarding process setting up a subscription to building wealth on Wall Street will take a little preparation here are the steps

“Code”

1. Decide how much to invest monthly and start investing now.

First, you need to decide how much money you’ll be putting into the stock market on an initial and monthly basis when determining how much money to invest there are a few factors to keep in mind to assess your financial situation so you know how much money you make and you probably have a rough idea how much you spend on bills but how much money do you need for food gas and entertainment each month if you don’t already have a budget that answers this question it’s time to create one consider taking advantage of employer-sponsored retirement plans employer-sponsored retirement plans are great for several reasons first and foremost the funds for these plans are taken from your paycheck before taxes reducing your income tax burden consider automatic transfers it’s also a good idea to consider setting up automatic weekly bi-weekly or monthly transfers from your checking account into your investing account to get the subscription model rolling.

keep your monthly contributions manageable It’s important to make sizable investments on a regular basis in order to take advantage of the power of the stock market but you don’t want to set unreasonable expectations of yourself.

2. Choose an investing strategy.

once you’ve got some money set aside to begin investing it’s time to decide which investment strategy you’ll follow investment strategies are important because they give you a set of guardrails for your investing decisions and help you avoid emotional investing mistakes that can lead to losses

3. Decide what to invest in once you’ve set 

your strategy the next step to setting up your investing subscription is deciding what kind of securities to invest in before diving into the stock market it’s important to decide your ideal asset allocation the mix of asset classes you want to hold.

4 Do Your Research 

Next, you’ll want to do your research and find investment opportunities that fall in line with the investing strategy you’ve chosen the most successful investment decisions are well thought out and well researched if you’re investing in stock take the time to look into what the company does the size of the addressable market it caters to its profitability historic performance over the past five year period whether it pays dividends and whether the current share price represents a fair valuation if you’re investing in ETFs pay attention to historic performance expense ratio the assets the ETF invests in and the investing strategy the fund follows no matter what asset class you decide to invest in the more research you do before investing the stronger your chances of your investments being profitable.

5. Reward yourself 

one of the hardest parts of sticking to an investment plan is the lack of instant gratification when you pay for a subscription you’re instantly rewarded with access to the service it’s important to reward yourself for continuing to pay for investing subscription as well but how do you do that simply keeping track of your investments may provide the instant gratification you’re looking for think about it do you remember when you started saving how exciting it was to watch the balance in your savings account grow you weren’t using that money right then but there’s a sense of satisfaction in watching your wealth build take a moment on a monthly basis to comb through your investment most often you’ll find that your money has been working hard for you and growing each month which is rewarding to see if you’re already taking advantage of a plan like this you’re one step ahead.

one of the best changes you can make in this situation is to adjust how you look at investing, in general, don’t think of it as something that will benefit you only in the long run look at investing like a subscription to a wealth-building service that comes with the instant benefit.

That’s it for this episode please give your feedback in the comment section below

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