“If you don’t find a way to make money while you sleep, you will work until you die.”– Warren Buffet
The phrase said by Warren Buffett rightly fits everyone looking to earn substantial money over time. One day you would have enough bank balance, and you would be saying, “Wow! I must invest this in something”. This is where the stock market comes to your rescue.
You may have heard of the Cons more than the Pros, but you still find the stock market lucrative enough to invest.
Despite many available ways to invest and gain profits, the Stock Market wins the race because of its popularity and long-term factors. Having said this, let’s not ignore the risk it has. However, suppose you know how to manage the risks, you can benefit from investing in the stock market and secure your financial position.
Since you are here, we know you are looking for benefits to be doubly sure of your Stock Market investments. Today, we will walk you through top 3 reasons why you must invest in the stock market game. But first things first! Let’s understand in simple terms what exactly is Stock Market.
Stock Market is a collection of exchanges and markets where buying, selling, and issuance of shares of publicly held companies take place regularly. These financial activities are carried under a set of regulations. To understand stocks, you can call it ‘Liquid Asset,’ which means it can easily be converted into cash.
To Increase Your Money
Someone has rightly said that collecting your earnings in the savings account will not help you much in the long run. Additionally, money sitting in cash will slowly lose its value. If you are someone with bigger goals, investing it rightly can multiply your money. Let’s understand this point in detail.
As measured by the S&P 500, the stock market has an average 10% annual return on investments. This is despite the rapid change and volatility. Further, as per the savvy investors, the stock market provides the highest potential returns. Hence, investing in the stock market for an increase in your wealth is a smart idea. Bottom line! Through regular investment, you can turn your small amount into an immense value.
Invest Because Historically they have Grown
Over the last 100 years, stock values have grown. We don’t deny the pullbacks, periods of bad performances, and nasty crashes. But the overall picture shows a march towards a steady rise. Ups and downs in the market will always be there. Hence, if you buy for 30–50 years, you might gain better.
You Don’t Have to Be a Genius
When you have funds to invest, you probably also think about buying a property, starting a small business, or buying gold. Buying a property is always a huge investment, which you might or might not be ready for! With the gold prices these days, it is difficult to purchase a good amount of gold for investment purposes. With stocks, there is no minimum number you need to invest in, you can start small and grow steadily. The best thing about stocks is that you can start quickly by registering online with a trade broker, a few documentations, and buying a few stocks.
An experienced investor may have some advantage, but you don’t have to worry. Further, if you compare starting a business even if it is a small one, investing in a stock market is not only less risky but can give you profit even in the initial years.
