The stock market is the ultimate way to a better life. Don’t count on Social Security or some other government program to take care of you later on. While saving $1 a day is a nice concept, it means little if you don’t invest it properly. You can invest so many ways, it will make your head spin. There are many that aren’t right for you though. If you’re 10 years old then yes, you can afford to let whatever money you have grow at a few percent annually.
However, the older you are, the more risk you need to take if you need to see gains. Keep in mind that if you don’t really need big gains, then you can also take it slow. Don’t forget about inflation. If all you do with your money is keep it in a savings account, odds are, you’re losing money each year because inflation is greater than the interest gained.
Let’s talk about the penny stocks market. You want to have about a grand to get your feet wet. While many stocks, like Google, are out of your range, you still have hundreds to thousands of stocks to trade. If you’re highly involved, you could end up with $1000s within the first 12 months. But, if you like to leave things alone, you might only get 5% in a year.
Don’t have the cash? Try taking on a second job! Would you trade working a 2nd job for 1-2 months for a better rest of your life? Many do this to get the money to get going. If you want more or need a different funding source, try having a garage sale.
So you’ve got the cash, what now? Ready for knowledge? For starters, start reading all you can about how stocks work. Familiarize yourself with how stocks work. How to buy stocks, how to sell. You don’t need to invest just yet.
Do some research to find an online stock broker you can trust. Think or Swim might work as long as you have $3,500. Don’t rush. You’ve got time.
