There is a lot of debate over whether investing can be a full-time job. Some people believe that it is possible to make a living off of investing, while others think that it is impossible to generate enough income through investing alone. In this blog post, we will explore the pros and cons of investing as a full-time career and try to answer the question: can investing be your only job?
What is investing?
Before we learn if investing can be a full-time job, it's important to define 'investing' as there can be a lot of misconceptions. Investing refers to the act of allocating resources, usually money, with the expectation of generating an income or profit. T
here are a few different types of investing, but the most common are buying stocks, investing in real estate, and purchasing bonds, just to name a few.
Many people consider investing to be a form of gambling.
Is investing gambling?
However, investing is actually quite a bit different. When you gamble, you are hoping to win money by predicting the outcome of an event based on luck. With investing, you are expecting to earn a return on your investment over time.
This can be through capital appreciation or by receiving dividends and interest payments. The investment decision is made after researching fundamentals and understanding potential outcomes. There is however a connection between investing and speculation.
Speculation is a lot more similar to gambling, although it is not the same thing. Some investors might take a more speculative approach to their investments.
Gambling and full-time investing can be confused because a gambler might randomly pick a stock with absolutely no thought process. This would be gambling and is usually not seen as a full-time job by society.
If an investor spends time doing both technical and fundamental analysis, watching CEO interviews, and reading annual reports, it can be considered a full-time job.
What is considered a full-time job?
Let's take a look at the definition of a full-time job according to the Bureau of Labor Statistics. They define a full-time worker as someone who works 35 hours or more per week.
Can investing be a full-time job?
There is no easy answer to this question. On the one hand, investing can be a very lucrative career if you are successful. Many people have made a fortune investing in stocks, real estate, and other assets.
On the other hand, investing comes with risk. The stock market can be volatile, and there is always the possibility of losing money on your investments. This is true if you are investing your own money. However, there is another strategy that allows for investing to be a full-time job, even if the markets aren't in your favor.
Full-time employee at an investment firm
If you work for others, manage their money in the markets, and oversee their investments, that can be considered a job. Some of these jobs include:
- Portfolio manager
- Wealth advisor
These are just a few examples, and there are many other jobs in the investing field. Many people can consider these career paths as full-time jobs. This is because employees in this field receive a salary, just like any other job.
So, can investing be a full-time job?
Whether investing can be a full-time job or not depends on your definition of a job. If you are investing your own money and taking the risks associated with it, then it is probably not perceived as a full-time job by society.
If an individual spends a lot of time researching investments or actively trading, this can be considered a full-time job in their perspective. Other investors might be living off passive income from their investments as their portfolio grows.
They may not spend any or very little time actively investing. In this scenario, it is not considered a full-time job but can still reward a full-time income. On the contrary, if you are working for an investment firm and overseeing other people's money, then it can be considered a full-time job. It really just depends on what you are doing in the investing world.
How much do full-time investors make?
This depends on a variety of factors, including the type of investment you choose and how successful you are at picking winning investments. However, it is generally safe to say that full-time investors can make a good living if they are knowledgeable about the markets and invest wisely.
There is no fixed answer for individual investors but employees in the investing business can make a very comfortable living. Here are some of the annual salaries for professional investors:
- Portfolio manager - $95,000-$250,000
- Wealth advisor - $65,000-$150,000
- Stockbroker - $40,000-$200,000
As you can see, there is a wide range of salaries for investing professionals. The amount of money you can make investing full-time depends on your experience and expertise.
Is investing considered a job?
This is a difficult question to answer. Technically, investing is not considered a job because you are not working for someone else. However, investing can be very time-consuming and it can be your primary source of income if you are successful.
Therefore, some people consider investing to be a form of self-employment. Whether or not investing is considered a "real job" is up for debate. What is certain, however, is that it takes up a lot of time and effort if you want to be successful at it.
Can investing be your only job?
Yes, investing can be your only job if you are successful at it. However, it is important to remember that there is always risk involved in investing. You could lose all of your money if you make poor investment choices, or consistently make investment mistakes.
Therefore, it is important to diversify your investments and have other sources of income as well. If you are a successful wealth advisor or portfolio manager, it can be your only job as these professions often come with high salaries.
However, many other investing jobs do not come with such a high-income potential. If you are just earning a starting salary, investing can be your only job or you may need a side job. This depends on your lifestyle and cost of living. So, can investing be your only job? It depends on your situation.
Yes, investing can be your only job if you are successful at it. However, it is important to remember that there is always risk involved in investing.
Therefore, it is important to diversify your investments and have other sources of income as well. Other streams of passive income can include owning assets such as stocks, bonds, and real estate. These assets can generate income for you even if you are not actively investing in them.
To be a successful full-time investor, it is important to have a diversified portfolio that includes both active and passive investments. Passive income from investing allows investors to still have cash flow coming into their accounts when the markets are volatile and too can prevent selling at a loss.
The bottom line is that investing can be a very lucrative career if you are knowledgeable about the markets and invest wisely. However, it is important to remember that there is always risk involved in investing.
Therefore, it is important to diversify your investments and have other sources of income as well. Investing for instant cash-flowing income and investing purely for appreciation or arbitrage profits are different important concepts. You need to understand how to construct your portfolio effectively if you'd like investing to be your job.
Can you make a living off investing?
Yes, you can make a living off investing if you know what you are doing. Investing can be a very profitable career if you are knowledgeable about the markets and invest wisely. You can also work for a well-operating investment firm and make a living with a salary.
However, it is important to remember that there is always risk involved. It is also important to have other sources of income as well in case investing does not work out for you. Some people consider it to be a form of self-employment while others believe that investing takes up so much time and effort that it should be considered a job. No matter what you believe, investing can be a great way to make money if done correctly.
Understanding the average cost of living as an investor
To make a living off investing, you'd have to match or make more than the average cost of living which is $36,000 per year. This means that you would need to make at least $52,000 a year to live comfortably while working as an investor.
This is a difficult task, but it is not impossible. Many full-time investors make more than this amount every year. $36,000 may seem like a lot, and to make investing your only job, you would need to generate enough income through investing to cover all of your living expenses. For most people, this is not possible unless they have other sources of income or are extremely skilled investors.
It also depends on how much money you are starting with. It's important to note that although $36,000 is the average, it's possible to make a living and survive off less. If you can live a frugal lifestyle, you may be able to make investing your only job with a lower income.
Frugal living includes budgeting your money, eating out less, and canceling unnecessary subscriptions. Many full-time investors also make more than the average cost of living. It is important to remember that there is always risk involved in investing.
Advantages and disadvantages of investing as a full-time job
When deciding if investing can be your only job, it is important to weigh the benefits and disadvantages of investing full-time. The term 'full-time' indicates that you will have to allocate a lot of attention to this pursuit.
For some, this may seem like an advantage because they will get to focus on investing and nothing else. Others may feel that this is too big of a commitment and may not want to sacrifice their time. It just depends on if you are passionate about investing.
Developing self-awareness can help you decide if this is the best path for you. Here are some of the advantages and disadvantages of investing as a full-time job:
- Investing can be a very lucrative career if you are knowledgeable about the markets and invest wisely.
- You can have a lot of control over your career if you are a full-time investor
- You can make a lot of money if you are successful at investing
- Work as part of a prestigious investment firm and earn a salary
- There is always risk involved in investing and you could incur in losses
- Investing can be very time-consuming and stressful
- You may not have a lot of job security if you are a full-time investor
- You may have to work long hours if you are a full-time investor
How much money do you need to start investing?
This is a common question and there is no easy answer as it depends on your investing goals and strategies. Many experts recommend starting with at least $500-$1000 to begin seeing meaningful results.
It is important to know that even a few dollars can get someone started as an investor. Many skilled capital allocators have been able to multiply just a few dollars repeatedly until it provided them with a full-time income.
In conclusion, investing can be a lucrative full-time career if you are successful. However, it is important to remember that returns are not guaranteed and you could lose money or break even if you make poor investment choices.
Diversifying your investments is the best way to protect yourself against downturns in the market. It's possible for investing to be a full-time job through salaries or earn a full-time income through investing on your own. Many full-time investors make more than the average cost of living. If you enjoy investing, this could be a suitable career path for you.
Image source: Unsplash