Let’s be honest here, everyone wants to make money.
Well fuck me, look who’s the revolutionary blogger sweeping the internet with their life changing perspectives. Thank- YOU Captain Obvious.
The share market or the stocks market if you’re not from Australia is a way of making more money with your savings than just leaving it in the bank. Of course, people will say that the economic climate isn’t great and it’s dangerous, and I’ll be honest it is.
Then why invest?
For me, I found work and felt financially secure enough to start putting some savings into companies. Well actually, I felt the desire to make use of what I’ve earnt and besides, I wanted to spice things up a bit. That and 5 grand aside. I realised how many opportunities the share market can provide. After days worth of research (or due diligence) and reading up on some commentary about the economy, I’ve managed to build a simple portfolio. Of course this was after withdrawing from the shambles that was my initial foray into the unforgiving world of mining small caps. The only reason I did was because I listened to an Uber driver’s advice and after spotting the signs I followed through with his advice. Needless to say that was the most expensive journey I have ever took. Ever.
Not all signs point you in the right direction.
More to the point, investing is a serious commitment and while there is plenty of stocks that can be bought and portfolios that can be “set and forget”. For it to be successful, it needs to be monitored and strategies put in place for good and bad outcomes, most of which come from company announcements. Being aware of the economics surrounding your stocks is also very important. That is why if you have an interest in the economy and the world around us, it is possible to capitlize on learning a bit more and set yourself up for a better financial future.
The issue with that is, essentially you are placing a bet on the knowledge you acquire and the resources you have drawn upon. It’s an educated guess based on research and analysis but in the end no-one knows 100% what will happen next. Just need to find good commentators and trust in your due diligence.
The up-side to all this is the typical financial mumbo-jumbo; that is, with worldwide interest rates being record low you will find much greater returns investing. Dividends alone can give you the same amount or more than the interest give by banks each year, allowing whatever you make from price movements being profit. With enough people taking this route the economy will recover and share prices will rise further sharing the profit.
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