- Taylor Price moved in with her mom so she could save and invest more money.
- Its strategies include averaging dollar costs, diversifying and planning ahead.
- It also maximizes its Roth IRA so that it can have a fund dedicated to retirement.
- Read more articles from Personal Finance Insider.
Today Taylor Price has follows over 1 million users on TikTok and uses his platform to educate General Z on all matters of personal finance. But Price wasn’t always an expert on money, nor did she expect to end up on the field.
In college, Price dreamed of becoming a neurosurgeon, but due to complications from spinal fusion surgery she underwent in high school, her sleep was compromised. She could not pursue a career that would require her to stand or bend for hours.
Price changed her career path and moved into business management with a focus on finance. But even that didn’t seem right. After learning about endless financial concepts for companies, she realized she knew nothing about her own finances.
Then she started teaching herself about money through books, blogs and YouTube videos. She would then try out concepts and strategies and share her experience on her blog. This habit eventually led her to found the current company, Touch Intuit, a website focused on General Z.’s financial literacy.
Although she now makes a very comfortable income – sometimes according to documents reviewed by Insider it is $ 33,000 a month – Price decided to return to her mom so she could save as much money as possible and continue to use her knowledge to invest. Below he shares the key investment strategies he uses to build wealth.
It uses the dollar price average method
Price benefits dollar cost average method to invest, contributing a steady amount of their income to a diversified portfolio each month. It is not trying to time the market.
Invest the same amount weekly, biweekly or monthly, regardless of what is happening in the market, reduces the risks associated with market volatility. If the market declines, you get more stock for your money, and if the market grows, the stocks you already own increase in value.
This method also reduces the stress associated with trying to guess or speculate about market behavior and prevents you from putting a lump sum of money on the market when it is too high. This may interest you : U.S. has administered 187 million doses of COVID-19 vaccines, CDC says.
Diversify your portfolio
Price is investing in building long-term wealth. She maintains a diverse portfolio it includes exchange traded funds (ETFs),, index funds, shares and bonds, and even cryptocurrencies. Being young means she is able to take a little more risk than someone who may be closer to retirement.
Her favorite ETFs are from ARK investment management. The asset management company is run by one of its idols, Cathie Wood. Wood, a rare female CEO, was an inspiration to Price because she is a successful woman in a field that is still predominantly male.
In addition, Price is investing in mirrored ETFs S&P 500 index because they are diverse. Some of her choices are SPY, and Vanguard funds such as LET i VTI.
It also maximizes it annual allowable contribution to her Roth IRA. This allows her to take advantage of the tax breaks associated with this account while saving money for retirement.
She creates a plan before making an investment decision
Every time Price wants to make an investment decision or add to its portfolio, she creates a plan before taking action. This helps her avoid quick or emotional decisions. She is aware of addiction, anxiety and other emotions associated with regular trading. User interface that can be found on some trading applications integrates colored icons and flashing icons, making the process look like a game.
“One of the strategies I’ve implemented is to write it all down and have an action plan when it comes to my investment portfolio,” Price told Insider. “Having an action plan, the green, red ones we see in trading apps and market instability don’t affect me as emotionally as someone who may not have a plan and just hopes for the best. To see also : IRS Extends More 2021 Tax Deadlines, But Estimated Payments Still Due April 15, 2021. I know when I’m buying and when I’m going out.”
