Stocks | How To Know Which To Buy And When To Invest? [Investing Strategy 101]

How To Know Which Stocks To Buy And When To Invest - Investing Strategy 101

Disclosure: Fresh Life Advice may receive commissions for affiliate links included in this stocks article. However, we only include links to products that we believe in and utilize ourselves. These recommendations are not given out lightly.

The Main Rules of Fresh Life Advice Stock Investing Strategy

Of all the articles published in this blog’s archives, you can really boil down my incoherent ramblings into a few fundamentals that anyone can use to become a wealthy investor:

  1. Save more than you spend. Live below your means to be able to invest as much money as possible and as early as possible.
  2. Choose passively managed index funds or ETF’s (i.e. NYSEARCA: VTI or MUTF: VTSAX) with the lowest expense ratios (less than 0.15%) in lieu of picking individual stocks, mutual funds with high fees, or actively managed hedge funds.
  3. No short-term active trading. Yes, I’m even talking about the GameStop Stock Frenzy.
  4. Buy and hold for as long as possible, preferably forever. The longer you remain invested, the less “rigged” the market is.
  5. Pick a portfolio allocation and stick to it. Asset allocation trumps stock-picking and a constant search for alpha.

With all that being said, sometimes I will occasionally indulge my animalistic instincts and make speculative plays. In these cases, I am essentially betting on a certain equity (stock) to outperform the market.

But it’s important to realize individual stock investing should not be the majority of your portfolio. We are talking less than 20% of your net worth. Think of it as fun money. If you theoretically lost it all, you would not be devastated.

I know, even losing more than a penny, can be devastating to one’s fragile ego.

INVESTING IN INDIVIDUAL STOCKS

Investing in individual stocks and equities can be overwhelming. There are so many options to choose from. How do you know which will perform well?

The truth is… No one knows.

No one can confidently predict the future without knowing. That’s why investing in low cost index funds is such a trusted solution.

In general, the index funds track the overall market performance. Since indexes like the Standard & Poor’s 500 (S&P 500) are composed of 500 large public stocks, they can capture the stocks that do incredibly well. However, they also contain stocks that possibly underperform or file for bankruptcy.

The world usually references the S&P 500 or the Dow Jones Industrial Average as two major indexes that capture the stock market. They are two different indexes, but both are composed of some of the major companies that drive the market.

Time To Invest - S And P 500 Index History Chart
Source: Fed Prime Rate

Although there is no way to tell what the future holds, studying the general market structure and where we are in the current market cycle can help provide a framework for better decision making and future market expectations.

The chart below shows the historical performance of the S&P 500 Index throughout the U.S. Bull and Bear Markets from 1926 all the way up to 2019. It’s imperative to remember past performance is no guarantee of future results. Nevertheless, looking at the history of the market’s expansions and recessions does help to gain a ‘Fresh Life Advice’ perspective on the benefits of investing for the long haul.

Time To Invest - History of U.S. Bear and Bull Markets Since 1926
Source: First Trust Advisors L.P., Bloomberg. Returns from 1926 – 2019.

On the other hand, the Dow Jones Industrial Average (DJIA) is comprised of 30 large public companies. In the financial industry, the DJIA is used as a benchmark for the largest stock market in the world.Time To Invest - Dow Jones Industrial Average History

What can you observe from looking at the charts above?

Have a child look at this, and even they will be able to tell you the line goes up over time.

Investing, otherwise known as buying and holding, is not the same as gambling. If you invest in the market long enough, your investment will increase! Great news for investors!

Due to the former factors, the rate of return for index funds is much more stable than for individual stocks. In other words, the increases and decreases may not be as significant as other equities. This is also what’s known in the finance world as lower volatility.

Stocks are a risky investment vehicle – don’t get me wrong. But index funds are so diversified that it’s nearly impossible for you to lose your entire investment since the fund is unlikely to crash 100% when so many different companies are held in the fund portfolio.

However, as we’ve seen in the past (Covid-19 Correction of March 2020, Financial Crisis of 2008-2009, Dot-Com Bubble of 2000, etc.), investing in individual companies that do go bankrupt can lead to you lose all of your equity in that respective company.

Just remember:

“The markets can stay irrational longer than we can stay solvent…”

– John Maynard Keynes, Economist

Essentially, just because you made the right fundamental investment doesn’t mean the market will treat you fairly. It’s an “Eat-or-be-eaten” world. And the market can easily strip you of all your hard-earned money if you aren’t careful with your risk.

I’m a firm believer that you should never invest in anything that causes you to lose sleep. Dale Carnegie mentions in his famous best-selling book How to Stop Worrying and Start Living.

Without further ado, the two main approaches to use for investing in individual stocks are fundamental analysis and technical analysis.

FUNDAMENTAL ANALYSIS

Fundamental analysis measures stocks by looking at their intrinsic value. For this theory, companies are worth the net present value of their cash flows. Long-term investors study everything from the overall economy and industry conditions to the financial strength and management of individual companies. Earnings, expenses, assets, and liabilities all come under scrutiny by fundamental analysts.

Let’s run through 3 main aspects of fundamentals to check before investing in a stock.

1. Quarterly Earnings

Quarterly earnings are arguably the most important quality of a good stock.

If the company is consistently making money, you will be consistently making money too!

People always like to advise “Let your winners win”. I interpret this as the classic buy and never sell model that Warren Buffett’s mentor, Benjamin Graham, preaches in his book The Intelligent Investor. The underlying basis of this novel is fundamental analysis.

Companies that flaunt consistent earnings beat will see a steady increase in price. This is a major indication that the company is doing something right.

Here is an example of what Apple’s quarterly earnings looks like.

2. Company Leadership

Many investment gurus also claim that past performance does not indicate future results. There is no denying this, but instincts tell us this isn’t painting the whole picture.

Warren Buffett bought more than $1 billion of Coca-Cola (KO) shares in 1988, an amount equivalent to 6.2% of the company, making it the largest position in his portfolio at the time. It remains one of Berkshire Hathaway’s biggest holdings today. Coca-Cola’s iconic name and global reach created a moat around its core soft drink product, so Buffett did not have to worry a competitor would come and take away its market share.

There was a profound perspective Warren touted: no matter who was the CEO of Coca-Cola, the company would still thrive due to the economic powerhouse it had become.

For 99% of the other companies, leadership matters. If a company doesn’t have a strong C-Suite or Board of Directors, the company’s profits may suffer too.

3. PE Ratio

Price-to-Earnings (P/E) Ratio: A ratio used for valuing companies and to find out whether they are overvalued or undervalued.

When To Invest Price To Earnings Ratio Formula

A high Price-Earnings ratio indicates that investors are expecting higher growth of company’s earnings in the future compared to companies with a lower Price-Earnings ratio.

A low Price-Earnings ratio may indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends.

When a company has no earnings or is posting losses, in both cases P/E will be expressed as “N/A.” Though it is possible to calculate a negative P/E, this is not the common convention.

In general, if you see this P/E ratio higher than 30, the stock is likely overvalued unless there is significant future growth planned.

Jeremy J. Siegel’s The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New is a great resource for all kinds of investors interested in fundamental analysis.

Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. He discusses extensively on the economy and financial markets.

PE Ratio in Action

In his novel, Siegel argues that P/E ratio matters. He compares all kinds of stocks. For example, he asks you if you’d rather invest in Standard Oil of NJ or IBM from 1950 to 2003. What do you think?

Initial instinct tells you IBM because of the technological revolution. As a result, IBM did well because investors expected it to do well.

The basic principle of return states that the long-term return on a stock depends not on the actual growth of its earnings but on how those earnings compare to what investors expected.

The results? Standard Oil of NJ beat out IBM by a narrow margin of a 14.42% return vs a 13.83% return.

Although the difference seems small, when you look at equal initial investments of $1,000 in each company, the outcome is astounding!

After 53 years, the small investment in the oil giant yields $1,260,000 while IBM yields $961,000. That’s 24% less…

Investing Leaving Money on the Table

Who really would want to leave that $299,000 difference on the table? No one.

Siegel also strongly advises reinvesting dividends, just like I do in my monthly income reports. Reinvesting dividends is the critical factor giving the edge to most winning stocks in the long run.

Siegel has stated that IPOs typically disappoint. In fact, he analyzed 9,000 IPOs between 1968 and 2003 and concluded that they consistently underperformed a small-cap index in nearly 4 out 5 cases. That’s a whopping 80%! Others disagree, especially with some of the hottest tech IPO’s that debuted between 2003 and present day.

If you were curious, Siegel has found the best performing stock from 1925 to 2003. Not many would have guessed it, but Phillip Morris, now known as Altria Group (NYSE: MO), dominated.

  1. Phillip Morris (NYSE: MO)
  2. Abbott Labs (NYSE: ABT)
  3. Bristol Myers Squibb (NYSE: BMY)
  4. Tootsie Rolls (NYSE: TR)

I’m sure no one would have expected Tootsie Rolls to be on that list, but chocolate candies were popular during this time!

The top 20 average is 15.26%, versus 10.85% for the S&P 500.

Average PE ratio of these companies is 19.04 versus S&P 500 PE ratio of 17.35.

Note that the average dividend yield is 3.40%, so they return cash to shareholders.

Siegel says if you look at every stock traded from 1925, the best performing stock is Phillip Morris. If you look at the best performing stock since 1950, it is Philip Morris. What is best stock since 1957? You guessed it – Philip Morris.

If you put $1,000 in the S&P 500 in 1957, it would be $124,522 by the end of 2004.

If you had put that same $1,000 in Philip Morris, it would be worth $4.6 million.

Philip Morris has even paid $125 billion to litigants for cigarette liability… And they still have outperformed the rest of the market.

History shows that, on average, just two stocks from the global market-cap top 10 list remain on the list a decade later. The two survivors almost always include the number-one stock.

But the number-one stock has never been top dog a decade later, ultimately underperforming and moving lower in the list. The second surviving stock has 50/50 odds of beating the market. If this history repeats, 9 of the top 10 market-cap stocks will underperform the market over the next 10 years, and just one has a 50% chance of underperforming.

Fundamental Analysis Summary

  • Companies are worth the net present value of their cash flows
  • Buy and hold companies priced below their intrinsic value
  • Markets are 90% rational, 10% psychological
  • Long-term investors

TECHNICAL ANALYSIS

Technical analysis uses visual patterns on a chart created by price to determine where the market is moving. For technical analysis, traders attempt to identify opportunities by looking at statistical trends, such as movements in a stock’s price and volume. Traders theorize there is no need to pay attention to the fundamentals since they are assumed to be factored into the price already. Technical analysts do not attempt to measure a security’s intrinsic value. Instead, they use stock charts to identify patterns and trends that suggest what a stock will do in the future.

1. RSI Indicator

Relative Strength Index (RSI): A momentum oscillator that is able to measure the velocity and magnitude of stock price changes.

The relative strength index (RSI) conveys a stock’s momentum, where RSI is calculated as the ratio of positive price changes to negative price changes.

RSI analysis compares the current RSI against different conditions.

  • An RSI value of 70 indicates the stock is Overbought. Recommended Action: Hold or Sell.
  • An RSI value of 50 indicates the stock is Neutral. Recommended Action: Hold.
  • An RSI value of 30 indicates the stock is Oversold. Recommended Action: Buy.

When determining whether to buy a stock, you should go through many steps. Some steps are implicit, but all are necessary in the process.

When checking the RSI of a stock, ensure the indicator somewhere between 25 and 45 before pulling the trigger on the ‘Buy’ button.

2. MACD Indicator

Moving Average Convergence-Divergence (MACD): Difference between short-term and long-term exponential moving averages, as plotted against a center line that represents where the two averages equal each other.

The best-known volume indicator is the moving average convergence-divergence (MACD) indicator.

  • A positive MACD value shows that the short-term average is above the long-term average and the market should move upward. Recommended Action: Hold or Sell.
  • A negative MACD value shows that the short-term average is below the long-term average and that the market is moving downward. Recommended Action: Buy.

When the MACD is plotted on a chart, and its line crosses the centerline, it shows when the moving averages that make it up cross over.

The MACD indicator is the most popular tool in technical analysis because it gives traders the ability to quickly and easily identify the short-term trend direction. This helps traders to ensure that they are trading in the direction of momentum.

3. ADX Indicator

Average Directional Index (ADX): Uses positive and negative directional indicators to determine how strong an uptrend or downtrend is on a scale of 0 to 100.

  • Values below 25 indicate a weak trend.
  • Values over 25 indicate a strong trend.

The ADX indicator can be used to dictate if a security is trending or not. This deduction helps traders choose between a trend-following system or a non-trend-following system. The ADX indicator is an average of expanding price range values.

The Aroon indicator is a very similar tool to analyze trends. The ADX is composed of a total of 3 lines, while the Aroon indicator is composed of 2.

The Aroon indicator plots the lengths of time since the highest and lowest trading prices were reached, using that data to ascertain the nature and strength of the trend or the onset of a new trend.

Technical Analysis Summary

  • Companies are worth what other investors perceive their as their worth
  • Buy and sell companies based on movement in stock prices
  • Markets are 10% rational, 90% psychological
  • Traders

If you want to learn more about technical analysis, a great place to start is Technical Analysis for Dummies. Don’t be too offended by the title. The book really does a great job of taking a complex subject and educating using terms that an average investor can easily digest.

ARE STOCK ANALYSIS METHODS OUTDATED?

We can look at popular stock like Amazon.com, Inc. (NASDAQ: AMZN) and wonder “Is fundamental analysis broken?

Time To Invest - Amazon PE Ratio 5 Year History
Source: YCharts

Here, we see the PE ratio of Amazon reached insane levels of near 500 in 2016. Yes, shareholders were paying more than 500 times the earnings…

Time To Invest Amazon Stock Price 5 Year History
Source: Google Finance

Yet, when we look at the stock price graph above, the stock continued to soar despite overvaluation.

Some of the most popular tech stocks are from the FAAMG acronym, which stands for:

  • Facebook (NASDAQ: FB)
  • Amazon (NASDAQ: AMZN)
  • Apple (NASDAQ: AAPL)
  • Microsoft (NASDAQ: MSFT)
  • Google (NASDAQ: GOOGL / NASDAQ: GOOG)

As of April 01, 2021, the market capitalization of these companies summed up to $848.14B + $1.58T + $2.06T + $1.82T + $1.44T = $7.75 trillion.

Each of the stocks in the FAAMG class is in the top 10, by market cap, of the S&P 500 index. Although the five stocks are only 1% of the 500 companies in the index, they make up 13% of the market value weighting in the S&P 500.

Since the S&P 500 has widely been accepted as representation of the US economy, a collective upward (or downward) movement in the stock performance of FAAMG will most likely lead to a similar movement in the index and the market.

Some experts are predicting another tech bubble and market crash like the one in 2000.

However, some analysts have noted that there is a major difference this time. Nowadays, there is plenty room for the current tech class to grow as areas of cloud computing, social media, e-commerce, artificial intelligence (AI), machine learning, and big data are still being explored and developed.

Only time will tell.

It feels like everyone is day trading or hitting the jackpot. Remind yourself to stay on your own investing course. Boring and slow often is the way to wealth.

USING FUNDAMENTAL AND TECHNICAL ANALYSIS TOGETHER

The Efficient Market Hypothesis argues that asset prices reflect all available information, so you cannot reliably use fundamental analysis (expert stock selection) or technical analysis (market timing) alone to outperform the overall market.

Top Stock Investing Strategies

Should you buy what’s been working? Pour money into your losers? Pick new stocks altogether?

Yes, buying individual stocks offers the potential for greater gains but it also opens you up to all sorts of psychological pitfalls that don’t necessarily apply when owning the entire stock market.

The problem for many investors these days is they only believe in their stocks when they’re rising. If you don’t believe in those same stocks when they’re falling, you have no business owning them over the long haul.

You don’t have to meticulously study the stock market day in and day out like some hedge funds or financial analysts, but if you keep an occasional watchful eye, you will be able to tell when the stock market is hot or cooling off.

Buy low, sell high. You’re well aware of this trite advice, but it’s easier said than done. When you’re experiencing 30% – 50% drops of your entire net worth within months, and even in the short span of days, are you really going to have the discipline to refrain from panic selling?

FREE STOCK ANALYSIS TOOLS

One of the best free tools used to track the state of the market is the Fear and Greed Index.

  • Use this to your advantage to buy when others are fearful.
  • Hold (or sell) and enjoy watching your gains skyrocket when most investors are greedy.

Other free tools I frequently use to compare stocks include the following:

This is, by all means, not the most comprehensive method of buying stocks. However, I can guarantee you’ll have an edge over the average Joe.

One of the biggest reasons why I believe my portfolio has outperformed the S&P is pure luck because I never sell. I’ve never sold a stock.

And I don’t plan to until I actually need the money. You ask – when will that be, FLA?

Once I’ve left my corporate 9-5 job, I will live off the dividends of my stocks to financially support my ideal retirement.

WIN OR LOSE

Don’t forget that for every stock buy, there is someone on the other side of the deal that is selling their shares. That’s mainly where you see the buy / ask price. The broker is looking for a seller that agrees to the asking price.

The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The spread is the difference between these two prices. The smaller the spread, the greater the liquidity is of the given security.

For every stock transaction, there will be a winner and loser. Which side will you be on?

Disclosure: Fresh Life Advice is an opinion-based website. I am not a financial advisor, and the opinions on this site should not be considered financial advice.

Personal Capital: The Ultimate Tool to track your Net Worth, Budget and more.

What is your investing strategy? When do you know it’s the right time to buy or sell a stock? Let me know in the comments below.

March Side Income Report | 2021

March 2021 Side Income

Welcome to the 2021 March Side Income Report.

I’ve been blogging A LOT these past 2 months… April Fools!

Stay tuned for more this year though.

Let’s start this post with the obligatory caveat:

FLA’s side hustle income reports are not for the purpose of bragging. This side income amount of money is by no means impressive. The sole purpose of this series is to inspire you to create diversified income streams in order to help you achieve your financial goals faster.

I began this tumultuous F.I.R.E. (Financial Independence – Retire Early) journey almost immediately after graduating from college and shortly realizing it is never ideal to work for someone other than yourself.

After withdrawing from the corporate world, I plan to fully indulge in my mission of helping 10 million people with their own path to financial freedom. I’ve discovered a wonderful community of people with shared mindsets. So I’m currently on a journey to see if we can turn FLA into a little business that supports the mission.

The reason I’ve decided to publish these income reports is because I want you to be a part of the journey.

After aggressively saving 70%+ of my annual income year after year, I’m approximately 25% of the way to retirement with 10 years to go. I’m aware that side hustles may never fully support one’s expenses, but I’m willing to try.

At the very minimum of making $1/month (what one may consider failure), I am ecstatic as I realize this can be considered supplemental income that will be able to be reinvested into this blog to enhance your reading experience on FLA.

Through my arduous journey, I’ve learned to focus on the future value of money. One dollar to you may look like a standard George Washington-faced bill, but to me, I see its potential.  Accounting for 3% inflation, investing that dollar could return 5 times its original value in 25 years. Yes, that’s like putting $1 into an ATM and having it return a $5 bill back to you. How amazing is compound interest?! Hypothetically, you can increase that principal amount, and you’ve got yourself some unbelievable returns.

My hope with these income reports is ultimately to present some transparency for you. By showing it doesn’t take much effort to earn and save, I may motivate you to chase one of your biggest dreams. Dreams may originally sound outlandish, but they all need to start somewhere, right? Without further ado, here is FLA’s March 2021 Side Income Report.

 

MARCH SIDE INCOME REPORT

The best way to make money is to have various streams of revenue. The best way to protect yourself in the course of ill-fated events stripping you of some of your main sources of income is to diversify.

We have all heard the pragmatic advice of “Don’t put all of your eggs in one basket.” Well, put this theory into practice. The following is my best attempt to develop additional sources of income. Below are the six ways I attempted to make money from my side hustles in the month of March.

 

 

Stocks are my absolute favorite money-making assets. Your money can make money for you with the click of a ‘buy’ button! Sure, there are ups and downs in the stock market, but if you look historically at the S&P 500 Index or the Dow Jones Industrial Average, your investment generally grows over the long term. Remember, investing and gambling are not the same thing.

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

-Warren Buffett, American Investor/Business Tycoon/Philanthropist/Chairman and CEO of Berkshire Hathaway

Investors and analysts may contend that conducting research on which stock to buy may be active work, but it is a generally held credence that dividends are passive income.

What are dividends?

Simply, they are distribution of some of a company’s earnings to a class of its shareholders. In this case, you are the shareholder. Yes, I know it’s hard to believe, but the company you invest in will reward you with bonus money!

Let’s take a look at the aftermath of the stocks that paid out dividends this month:

March Side Income 2021 Stock Dividends

Which stocks have I invested in? I have a few individual stock picks, but the finance community knows this is often a loser’s game. I mainly hold VTI, the Vanguard Total Stock Market Index Fund, which allows you to be diversified and capture 3,525 different stocks with a minimal expense ratio, or annual fee, of 0.03%. Index funds will often take you to the promised land in the long run.

Typically, you have 2 choices with dividends. You can either accept the dividend as cold hard cash or you can choose to reinvest the money back into the same stock automatically. It’s as simple as clicking the ‘yes’ button when prompted with the question on whether or not to re-invest dividends.

I strongly recommend you to reinvest your dividends and capital gains. Why? Well, look at this way: you didn’t have the earned dividend money to begin with. Do you really need it at this moment? Why not let your additional money grow even more? Open up an investment account and enjoy the magic of compounding interest by increasing your principal investment.

March Side Income – Stock Dividends / Interest Total: $206.66

 

In my free time, I participate in paid surveys. It’s one of my other sources of income. The surveys are mindless and allow you to temporarily escape from life’s struggles and reality. Oftentimes, you have a chance to play your part in society and provide meaningful feedback on hot topics that may be decided by top companies and government officials.

The 3 survey programs I use daily are:

  1. Prolific
  2. Pinecone Research
  3. YouGov

I strongly recommend any of these three survey websites because of the higher payouts. Our time on this planet is valuable. Always consider how much time you are trading for money.

Prolific

Prolific seems to have the highest quantity of surveys available. Each survey also previews an hourly rate to the user. This significantly helps in determining if the survey is worth your time. I’ve seen them range from $3/hour all the way up to $30/hour, but on average are $8/hour.

Pinecone Research

Pinecone Research surveys always reward you with $3 for every survey. Since each survey is typically around 10 minutes long, the site has a pretty standard hourly rate of $12/hour. However, the frequency of surveys is much less than Prolific.

YouGov

Finally, YouGov’s typical survey lasts for 10 minutes and will pay out $1.50, translating to an hourly rate of $6/hr. Even though it is the lowest payout, it still helps to have supplemental income. Again, always consider the balance between time and money.

YouGov is an eclectic group of the media, nonprofits and companies that congregate to find out what the world thinks. YouGov happens to be one of the most-quoted data sources in the US and across the world.

Prolific, Pinecone Research, and YouGov offer all kinds of rewards, but I normally recommend cash payout via PayPal. The transfer is usually instantaneous. Prolific does pay out in GBP, but the money is translated to USD when conducting a bank transfer in PayPal.

In fact, Prolific does not have a minimum payout, Pinecone’s minimum payout is $5, and YouGov’s minimum cash payout is $50, albeit YouGov offers the option of a $15 Amazon gift card.

March 2021 Side Income Survey Earnings

March 2021 Side Income Pinecone Research Cash Out

March 2021 Side Income Prolific Cash OutMarch 2021 Side Income Prolific Cash Out Transfer

 

March Side Income – Surveys Total: $177.58

 

An additional passive income stream is selling your old goods or unused consumer products. Simply list your items with competitive pricing on Amazon and/or eBay, sit back, and let the buyers make you offers.

I often notice friends, family, and even co-workers constantly looking to throw out items that are still in perfectly good condition; it drives me nuts! Why not let someone bid on the product? Worst case will be that it doesn’t sell, and then you can throw out the item. No harm, no foul.

At the very least, donate your stuff. I typically enjoy donating old apparel to the Salvation Army and other charities. It always feels good to know your treasured clothing is not going to waste.

This month, there was one stranger to bite on an item of my personal inventory I was looking to discard. After fees and small shipping costs, I usually still walk away with a hefty profit.

March 2021 Side Income Seller Earnings

March 2021 Side Income eBay March 25

March Side Income – Selling Total: $23.00

 

As a blogger, I would like to keep the user experience as clean as possible. Therefore, I have chosen to keep all Google AdSense ads from my website. I am an avid reader of many other blogs, and I can truthfully admit it retracts from the reading experience. I am very proud of this decision and will continue with this route.

March Side Income – Google AdSense Revenue: $0

 

I published my first eBook titled How I Launched, Marketed, and Promoted a High-Traffic Blog in Under 15 Days last year. I only promoted the book as part of the launch, but several people found their way to the sales page. Again, this is a learning process to convert the views into actual sales. As Robert Kiyosaki alludes to in his book Rich Dad, Poor Dad, it’s all about being a best-selling author, not a best-writing author. There is a subtle yet significant difference.

March Side Income – eBook Blog Startup Manual Sales: $0

 

Who would’ve ever thought that spending money would actually earn you money? Well, with cash-back credit cards, now it’s certainly possible. With my Capital One Venture Card, I can now make this dream a reality.

Depending on the card you have, you’ll score 1-2 miles with every dollar you spend. Capital One Miles can be used in a variety of ways and are generally worth between half a cent and one cent apiece.

Earn 50,000 bonus miles (equivalent to $500) once you spend $3,000 on purchases within the first 3 months from account opening.

This month I was able to keep my spending down due to the ongoing Covid-19 pandemic that limits the amount of time spent outside the house, thus limiting the amount of opportunities to throw away those hard-earned paychecks.

March 2021 Side Income Capital One Cash Back Earnings

After looking at my monthly expense report, I saw that I earned 3,646 miles, which is equivalent to $36.46.

March Side Income – Capital One Credit Card Cash-Back Rewards – $36.46

 

Well, that’s it for this month’s side income report! Hope you all had a great start to 2021.

In 2020, I was able to max out my Roth IRA and 401k – I highly recommend you do the same in 2021 if you have the option! In January, I immediately transferred the maximum $6,000 limit from my taxable brokerage account to the tax-deferred Roth IRA for the 2021 year, with most of it invested during a small market pullback at the beginning of March. The sooner, the better since time in the market often beats timing the market.

Thank you for taking the time to read through my latest March income report and thank you for contributing if you have previously purchased something through one of my affiliate links!

If you wish to support this site, but don’t have a need for any of FLA’s affiliate products, you could simply do your regular Amazon shopping through any of the links on this site that lead to Amazon.com. You won’t pay any extra and FLA will receive a small commission. Thanks so much if you do so!

That’s a wrap for this income report and this year! I am looking forward to earning more money on the side in the future. Stay hustlin’, my friends!

Total March Side Income: $443.70

 

How was your March 2021 side hustling? Let me know in the comments below.

 

Editorial Note – Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post.

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