Savings vs. Investment: Is stock trading worth it?
The path to becoming rich is all tied down to what your financial objectives are. Whether it is to earn a certain amount of money in one year or to be able to engage yourself in stock trading or forex trading for future financial perks, that’s completely up to you.
Savings vs. Investment
Savings pertain to the amount of money left after deducting your expenses. Investment, on the other hand, is an asset or an item that is purchased with the hope that it will generate income or will appreciate in the future. With that in mind, it is important to save for your emergency fund and invest for your future.
Your emergency fund is the money set aside for future financial dilemmas. It should at least cover three to six months worth of expenses.
Remember, getting rich is a state of mind and so does saving. Your savings should be highly liquid. It should be readily available whenever you need them. Of course, you only get to use your savings at times of crisis and not for personal reasons.
Will you get rich if you work hard enough?
Most people would have the idea that working harder will make you rich, it will. However, it’s not enough. You have to make your money work for you as well. Investing will beat inflation and will provide you with a comfortable retirement.
How do you plan to achieve this goal? Start early!
A lot of people, whether they are students, young professionals, or business managers of small or large corporations, are slowly engaging themselves in stock trading.
Why do people invest in stocks? It’s because stock trading can help anyone reach their long-term goals faster!
As long as you are familiar with the fundamental and technical analysis of stocks, and if you can tolerate price volatility, you’re good to go! Of course, all of these are jargons that can scare people who are not that knowledgeable about stock trading, but that shouldn't stop you. Remember, if you want to be rich, you have to have willpower – this goes to show that you have to devote time to learn these terminologies.
Stock trading involves risk – we can never escape risk. Keep in mind that those who take risks have a higher chance of achieving their financial goal. Of course, before you delve into the actual stock market, you need practice.
How do you practice stock trading if you do not have any money to invest in the first place?
Investagrams is a simulation website where you can practice trading stocks using the information available in the actual stock market.
There is no such thing as a “get rich quick” scheme. Even those who are considered experts in stock trading lose money. Remember, investing requires time, discipline, and knowledge.