There are two types of people in this world. The “Love to Win” or the “Hate to Lose”. While I really enjoy winning, hating to lose drives my decisions in a more powerful way. I like when I can develop a strategy and exercise control over something in order to come out on top. This is why every time I gamble and lose money, I get angry and tend to hold on to that loss a little too long. This mindset has held me back from heavily investing in the stock market, because while there is much more strategy involved in stocks than in, say, blackjack, it feels like a gamble when you give away a large sum of money only and have to be patient about getting any ROI. Watching the stock price go up and down in the short term can feel killer, but it isn’t. In fact, investing is one of the few ways anyone with some spare cash and a little patience can make big money. Get in the Game.
Start Small: You don’t have a ton of spare cash lying around? That’s ok. Start small! There are many trading platforms around, but two stand out as my favorites.
Robinhood Financial is my numero uno. Robinhood says it best- “With Robinhood, you can learn to invest in the stock market as you build out your portfolio.Discover new stocks through Collections, track your favorites with a personalized news feed, and more.”
Rarely if not no where else is there a trading platform that allows you to buy/sell stocks for free. Most platforms charge fees. Robinhood will even pay the fee to transfer your stocks from another platform over to theirs.
Right now, Robinhood is an app available on the app store or google play, but in 2018 it will be available over the web as well. I could not say more positive things about this app. sign up here to get free stocks up to a $500 value.
Stockpile is a new platform to me. You can spend as little or as much money as you want, and buy fractions of shares. There is a 99 cent fee when buying stock, but the platform allows you to own some of a stock that you may not be able to afford if you had to buy the whole thing. For instance, 1 share of Amazon (AMZ) is now trading at over $1000. You could buy $10 of Amazon through Stockpile, and own 1% of a share. Stockpile also allows your kids to make accounts under your account. They can learn to invest early and watch their money grow! If you would like us to gift you $5 of free shares to get started, contact us.
Why Invest now?
The stock market, on average, grows at 9.8% every year. Your average savings account pays 0.06% interest, with the highest topping out around 1.3%. Every year you wait to invest, you are losing out on the higher rate of growth for your money, you have more time to ride out the highs and lows of the market, you can be earning dividends and increasing your overall net worth.
Here is what your money could look like over time with a moderate savings of $100 per month in the bank, vs in the stock market: