> For the complete documentation index, see [llms.txt](https://davids-tutorials.gitbook.io/tutorials/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://davids-tutorials.gitbook.io/tutorials/overview/financial/investing.md).

# Investing

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**Investing tip:** Learn as much as you can before putting your money into something. 
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## Stock to invest into:

One of the best ways to invest into the stock market is to dollar cost average into the S\&P500.

Dollar cost averaging: incrementally invest money periodically

Example: A person can invest $10 into a stock every month over a period of 10 years. This can be automated payments to make it easier.

S\&P500 Index funds: there is a single stock that makes it easy to invest called SPY and also VOO

Dividends: a payout that investors receive every quarter of the year depending on how much they invested. A good rule of thumb is to reinvest your dividends back into the stock so that you keep compounding your wins.

***

## One way to distribute your investments

1. gold (20% of your investments)
2. Crypto like Bitcoin (5%)
3. Cash (5%)
4. Real Estate (30%)\
   (Note: Cars are a depreciating asset)
5. Stocks (30%)\
   (Consider: commodities during inflation)
6. Leftover (10%)\
   (put it in whichever of these)

***

## FOMO (Fear of Missing Out)

Whenever encountering FOMO, remember these:

* We all miss out opportunities every day. Missing out one more won't hurt in the grand scheme.
* There will always be a new opportunity in the future so it is okay to miss.
* Don't rely on lucky wins, instead rely on replicable wins. \
  (This will allow you to be more confident and repeat your success)