I made 6k this month doing nothing

I made 6k in the past 30 days doing nothing. I didn't work for it, and there was absolutely no effort on my part.



How did I do it you ask? Simple, investing.

Investing seems complicated at first, but it's really simple. A share is a piece of ownership in a corporation. If a company were to release 100 shares, then 1 share would be worth 1% of ownership. Now of course, companies generally release millions of shares of stock, but you get the idea. When you invest each little dollar you have goes to work for you, so you don't have to.

But investing is only for like rich people right?

Wrong. Investing is for everyone, and you don't need insider tips or fancy connections to do it. If you invest in an index fund, of the total U.S. stock market you can pretty much assume 8% a year growth of your investment.

I am lazy, so I like investing lazy. No research, no following stock patterns or fancy algoriths. My allocation works like this:

60% VTSAX - Vanguard Total Stock Market Index Fund
25% VTIAX - Vanguard Total International Stock Index Fund
10% VGSIX - Vanguard REIT Index Fund
5%  VBTLX - Vanguard Total Bond Market Index Fund

But, but, but... I don't have money to invest!!

Sure you do. To maintain any kind of fiscal responsibility you have to follow ONE rule, spend less then you earn. Simply invest the difference.

Each movie, expensive dinner, or video game you buy robs your future self of that money, plus the investment income that money would have earned you. That $5 starbucks coffee may seem cheap, but it really cost you about $50. I calculate that by assuming 8% growth for 30 years. Cut some of the fat around your budget and invest it.

Here are some very simple rules I follow for saving money