Why You Should Invest in the Stock Market Best Reasons (Beginner Tips)
Because of the internet, it’s literally changed the way that we trade on the stock market and nowadays it’s so much easier to get started investing no matter how much money you have to start with.
So if you want to start investing in the stock market then definitely read this blog because today I’m going over the three reasons why you should start investing in the stock market.
Why you should trade stocks
Right now and trust me when I say this is catered to beginners because everybody’s going to be able to follow along especially if you’re a beginner now if you just found this blog I’m Pratap with honest finance and I make a lot of blogs on different topics that will give your life and your finances more value.
Now let’s start talking about why you should start investing in the stock market now when it comes to trading in the stock market it’s definitely not as intimidating as it looks on the outside because trust me when I say as soon as you start getting into it you’re gonna learn a lot of new information and hopefully you can actually start saving some money up for your future as well.
So the first reason why you should start investing right now is because of the simple fact of the internet and the smartphone because these two things have changed the entire industry and it’s so much easier to start investing nowadays.
I mean seriously it’s so much easier now to invest straight from your phone or from your computer and you don’t even have to do things the old-school way which was going through a broker which is just expensive and it takes way too much time you can literally set up a brokerage account on your phone and you can start investing in a whole bunch of reputable companies for about ten bucks and that’s all you need to get started don’t hesitate to start investing in the stock market.
Because you’re afraid of losing money or that you think it’s a scam because historically if you go all the way back to 1928 the S&P 500 is actually averaged about 10% and returns.
So that definitely proves that it’s again overtime for the stock market I mean there are going to be years where you lose money and there’s going to be years where you make a lot of money but overall as long as you’re invested for the long term historically it proves that you are going to be making money in the stock market.
The next reason to start investing in the stock market right now is because it is absolutely essential that you start saving up for your future because this money is something that can generate for you over time and it compounds over time which is a big deal compound interest is one of the coolest tools out there that you can use to leverage your money over time.
Because what’s going to happen is if you actually put in fifty thousand dollars for about three two years at 10% interest then that money can actually generate into over a million dollars which is incredible for just 32 years and then keep in mind that there’s also a lot of tax benefits as well for investing in the stock market.
Because if you actually own a stock for longer than a year that’s considered long-term capital gains if you sell it and that’s actually going to be in typically a better tax bracket than your individual tax brackets.
So definitely take advantage of that kind of stuff if you’re investing in the stock market and then if you’re investing strictly for your retirement account.
Then I would definitely pay attention to all the tax-sheltered stuff like Roth IRAs and IRAs because those are gonna save you a ton of money in taxes if you’re only focused on your retirement.
So definitely take advantage now the third reason to start investing right now is because there’s actually a lot of really great brokerages out there that don’t charge any trading fees and that’s a really big deal especially.
If you just have a little money to invest with and if you don’t know what a brokerage is just think of it kind of like the store where you can actually legally trade stocks on the stock market and that’s all brokerages are now most traditional brokerages typically charge about five to ten dollars per trade but in my opinion that’s just a waste of money especially.
If you don’t have much to invest with because obviously if you were charged ten bucks to buy 10,000 shares then that’s not really a big deal but if you’re only investing about a hundred bucks and you have to pay ten dollars to trade then that’s just an instant waste of money on your profits because you’re probably not going to make that much money anyways plus
The other thing is that when you actually decide to sell those shares you have to pay the trading fee again.
So like I said if you only have a hundred bucks in there then you’re gonna lose twenty bucks from the beginning and the end and that’s just a waste of money there’s a few brokerages that you’ve probably heard of like Robin Hood m-1 finance and we Bowl that don’t charge any trading fees and those are really good brokerages to look into but there’s also a lot more that are coming out as well.
So we’ll just have to see what the future holds for all these different brokerages the three trades business model hasn’t been around very long but it’s definitely taking the industry over especially if you don’t have much to invest with because those trading fees just cut into your profits and that’s something that you don’t want to be doing-especially.
When you’re a beginner because when you’re a beginner in the stock market you’re already worried about way too many different variables that are going to affect how you’re going to be trading so the fees are one less thing that you have to worry about and that’s what you can do now with these new brokerages right now.
I think that we will is actually one of the best brokerage apps out there because they actually cater to all different types of investors whether you’re a beginner or you’re an expert because they have a ton of different features that you can choose from and they actually have one of the best signup bonuses available out of all the other apps.
If you sign up with weebly they’ll actually give you a stock that’s valued between $8 and $1,000 which is really cool and they only require you to put a hundred bucks in your account in order to get the free stock Plus once you’ve set up your account.
You can actually refer your friends and each time they sign up you’ll get a free stock and they’ll get a free stock so it’s just a win-win that you can keep doing because it’s in Weebly best interest to get as many accounts open as they can hoping that you’re gonna stay active for the long term.
Should i continue to invest in stock market
If you are interested in the free stock bonus then definitely check out my affiliate link- Click
I may be compensated if you click through it but just keep in mind that we believe they have a lot of really good features and on top of that they have the best free share offer that I found out of all the other apps investing in the stock market is just way too easy to do nowadays and so I don’t want you guys to come up with a single excuse as to why you’re not actually doing it because it’s just too easy but just keep in mind that if you’ve got any high-interest debt at home like on credit cards or anything like that.
Then I definitely want you to pay those off first before you start investing a lot of money in the stock market because you’re never gonna win if you have high-interest debt at home I don’t think it’s a bad idea to start investing with just a little bit of money.
Because you can learn a lot from that but definitely don’t put in a lot of money if you have high interest debt at home because that’s something that’s never gonna work out on the math side because if you’re paying 18% on your credit cards but you’re only making 10% in a stock market.
Then obviously you’re just losing money here so definitely make sure that you pay off your high-interest debts first before you start investing a lot of money in the stock market.
Top 10 reasons to invest in stocks
- Increase your money
- Save for comfort
- Earn more returns
- Reaching Financial Goals
- On a pre-tax dollar basis
- Emplo. Eligible for employer matching programs
- Start and expand a business
- Support others
- Reducing taxable income
- Become part of a new venture
Reasons to invest in the stock market
- Keep pace with inflation.
- Reach your financial goals with the right mix of investments.
- Reduce investing risk with a solid asset allocation strategy.
- Reduce risk with a well-planned strategy for buying and selling stocks.
- Use dollar-cost averaging to stay in the market when stock valuations are high.
- Aren’t impacted by high-frequency trading.
- Take Time to Get Your Footing
- You Don’t Have to Be a Brainiac
- The Market Isn’t Out to Get You
- Diversify Your Investments
- Grow Your Wealth
- Outrun Inflation
- Get Started on the Cheap
- It’s Not 2006
- It’s Not 2009 Anymore, Either
- Right Now, You’re Earning Just .05% Interest on Your Savings
- It’s Good for the Long-term
- You Want to Feel Like an Adult
- Your Friend’s Startup is Finally Going Public
- Good, Solid Investments Can Really Pay Off
- You Want Your Money to Grow
- Your Underwear Drawer is Overflowing With Cash
- You Want to Impress Your Parents
- Potential Tax Shelters Without Breaking the Law
- You Want to Be Able to Say, “Hey, My Stock Went Up Today!”
- You Saw the Wolf of Wall Street
- Warren Buffet Got Rich on the Stock Market
- You Work at a Company Without a 401(K) Plan
- It’s Always Good to Diversify Your Portfolio
- It’s What Those Talking Baby Commercials Were About
- You Know Who Charles Schwab is
- You Want to Save for Retirement
- You Have Companies You Care About
- You’re a Smart Risk-taker
- Making Easy Money is Fun
- You Want Security for Your Future
Benefits of investing in stocks
Best Benefits of Investing in Stock Market
- Protection against inflation
- Great Post Tax Earnings
- Ease of Access
- Invest in smaller amounts
- Partnering in the Nation’s Prosperity
- Well-Regulated and Transparent Framework
- Value Investing
- Opportunity to invest in markets across the globe
- Partnering the Business, You Love
So that you don’t lose overall now once again I’m Pratap with honest finance and I make a lot of blogs on different topics that’ll give your life and your finances more value.
Thank you so much, everybody, I’ll see you guys in the next one, take care! Ta Da!