Entering the stock market can feel overwhelming but if you are looking for a way
to grow your money, it is a better option than sticking it in a bank account. Saving
is still an important long- and short-term strategy but investing is a great way to
supplement your financial future.
If you put all your money into a savings account, you are going to earn very low
interest. Whereas if you take that money and put it in a stock/mutual fund, you're
going to see a return that is higher.
The good news is that you don't need to have a lot of money to start with, you can
start with as little as $50. People think you have to have thousands of dollars saved
up to invest but you really don't. The way you do it is to start small, keep adding so
that you build it up over time.
As with anything that involves the stock market, there is always risk, the key is not
to make emotioinal decisions and ride it out for the long haul. In the long run, most
people do well in the market. It's when you jump in and oiut when you hurt yourself.
When you are ready to start investing, the first step is to educate yourself. Sites like
Investopedia.com, Motif Investing or SigFig, break it down and put everything into
layman's terms. It isn't even neccessary to meet with a financial adviser in the
beginning.
Check up on your stocks about every six months. Then you can see how they are doing.
If you are able and wan tot invest more money, you can. The most important thing
when you are considering investing is not to be intimidated. Even if you know very
little about the stock market, you can still make a profit especially if you educate
yourself along the way and keep investing.
