As a stay-at-home mom, I don’t have a lot of additional income for savings or even items we don’t necessarily need but want. With three young kids, it’s cost-prohibitive to put our family in daycare in our city. Yet, we’d love to have enough savings for a rainy day and a few family vacations. This is why I started investing in penny stocks. They don’t require a lot of money but can generate a bit of a side income for us.
I actually decided to take the Timothy Sykes millionaire challenge to see how I can improve our financial outlook while staying at home with my kids. With penny stocks, I was able to invest some of our income without worrying about losing more money than we can afford.
My spouse and I agreed on a set amount to invest every month, and we worked our budget around that amount. At first, it was very difficult to invest because we were used to living paycheck to paycheck. We didn’t think we had any extra to spare.
But, we made adjustments, I cut more coupons and my husband was able to get more hours at work. Now, we have a monthly investment amount we can work with each month.
And, my husband trusts my choices. Of course, penny stocks are not a way to get rich quick–they are not lotto tickets.
We are in it for the long haul.
Learn as You Go
Since penny stocks are affordable, we have had some space to learn as we have continued to buy and trade. I have to admit, I was quite overwhelmed at first. But, paralysis will prevent you from pulling the trigger on the first trade.
The first time I bought a penny stock, I was nervous. But, I realized that my emotions were unfounded. You will see straightforward prices when you place your first order.
I was asked how many shares and whether I wanted the market price, stop-loss or limit-order. I chose market price to buy then and there. Even though I was inexperienced, I knew I had to dive in to learn more.
Plus, I only spent what I could afford to lose.
Works Well for a Tight Budget
In our household, nothing goes to waste. Our children share clothes, wear hand-me-downs and we even shop at thrift stores.
We try to conserve as much energy as possible. Furthermore, I cook large, inexpensive meals with a lot of vegetables and beans for leftovers and to cut down on our grocery bill.
So, penny stocks made a lot of sense to me since we are on a tight budget.
You Must Sell Quickly
The point is you shouldn’t get greedy. Some people want a 1,000 percent return–and, that may or may not happen. If you can make a 20-or-30 percent return in a week–then, you should sell quickly. Where else can you get that type of return?
My husband is lucky if he gets a 3 percent raise in a five-year time frame. So, you have to check the prices every day. Since I’m at home, it doesn’t take me more than a few minutes to look at penny stock prices. Then, I can go back to caring for my kids.
I started investing in penny stocks seven months ago. Since then, we have been able to increase our rainy-day savings funds by 30 percent. We couldn’t have done that on my husband’s income alone. So, I will continue investing as our next goal is a week-long family vacation.