People often tell us that they avoid investing in the stock market because it’s too risky. Others say they just don’t have enough money to get started. Others still just don’t want to invest in something they don’t understand. To an extent, these arguments are valid. The stock market, forex trading and other investments certainly can be complex. However, when you do it right, it’s certainly not risky and you can start with as little as you like.
Today we’re going to explain exactly why you should start investing. It’s never too early to start putting money away and building up a pot. It ought to be something you consider even in your twenties and early thirties. If you think of it as an extra savings pot, it doesn’t seem so hard. First of all, we’ll put any fears you might have to bed!
- It’s simple, once you do the research
Many avoid the markets because it’s just too complicated. Well, if you dedicate a weekend to researching and learning about it, it’s not so tough. Stock markets are very simple, at their core. You buy a ‘share’ which means you now own a percentage of a company. As an owner, you’re entitled to any profit the company makes in return. There are others too like Forex trading and Mutual Bonds. If you’re interested in Forex trading, you can even set up a demo account at ACM Gold. You can invest with fake money while you gain confidence and understanding.
- Better returns than savings
In general, investing provides much better returns than a typical savings account. Remember, that’s how you want to think of investment – like savings. Investing is not a get-rich-quick scenario. You play the long game and increase money as the markets rise over time. Stock prices rise much faster than the average interest rates at your bank. If your money is secured in good, strong companies, you’ll make more than saving. This is the number one tip for beginners.
- It’s not as dangerous as you think
The world of stock brokers and Wall Street has given investment a dangerous edge. We hear horror stories of those who have lost thousands. This can happen, but it’s almost always exclusive to the world of trading. This is the dangerous game of betting on stocks. They buy when stocks are super low and sell when they’re high. Naturally, this can go wrong. If you play the safe, sensible, long term game, it’s very risk free. In general, the market always goes up. Pick a portfolio of strong, growing companies and you’ll ride the market upwards over the years.
- Retirement and college tuition
Investing is a great way to put aside money for your retirement or college tuition. These are both long term investment tactics and suit investing perfectly. Set yourself a long future target and investing will provide for you.
Remember, investing is a great idea when you play it safe and secure. Spread your investments over a number of industries and options. That way you’ll ride the market, even if one area suffers a setback. What are you waiting for? Let’s start investing!