The New Investor: Why the Stock Market?

Week 1 of the 52 week series: The Stock Market Unpacked

Photo courtesy 3dman_eu via Pixabay

There has always been a part of me that felt that I deserved better in this lifetime than living paycheck to paycheck. I fully resonate with the people who get to enjoy the finer things in life, and living my dream should be as simple as setting goals and sticking to them, right?

So why am I nearing 40 years old and still in the same boat, when my goal to gain wealth has been an intention for most of my life? I know that choosing to have children was a huge investment in itself, but I refuse to give up on my dream. I believe fully that money can come into my life a lot easier than it has in the past. I don’t want to work every day until retirement and then live off of a small pension.

I want to be smarter about things now, so that I can enjoy the finer things in life before I am old enough that I don’t care anymore.

After a separation and a year of living off of a single income with children, I decided I had enough. Obviously, I needed to do more research into money management because my bank account was telling me I was not as good at saving money as I thought I was.

The first thing I learned was the importance of passive income: Income that did not require your time, your energy or your resources, to continue to grow. The key is to set it up…then let it grow on its own. This made sense to me; the more passive income you have, the more time you have, and the more energy you can devote to increasing your passive income! Once the ball is rolling, your finances should keep increasing exponentially. Sounds like a perfect plan to me.

So what are some of the most effective ways to gain Passive Income?

Real Estate has proven to be one of the highest return investments, but you need a hefty down payment and enough credit available to carry a mortgage. Also, if you want a healthy return you generally have to purchase a house that needs renovations, and then put in time and more money, to increase the value. I didn’t have money, time or available credit. A single income was not even close to being able to convince the bank to invest in me.

Mutual Funds are a safe investment, so I purchased some of these as well dabbling in the Stock Market because then all ground was covered. This is my slow-growth plan but, to be honest, they are a little boring to watch, and I wanted to learn at the same time as have my money grow.

Investing in someone else’s business is also a great way for your capital to grow, but again, I did not have enough money to make an investment that was worth anyone’s effort. Private business investments were not for me, so maybe Public ones were?

After some research, I decided that this was my path. I chose the Stock Market because I wanted to learn, and I wanted to have fun. I think the key with stocks is not to invest a ton of money until you learn more about the ins and outs of the Market unless you are working with a professional. Like any business, there will be a general pattern to which ones succeed, and which ones don’t.

I have already made one big mistake resulting from naivety, so it should only get better from here, right?

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Week 2 topics: Brokers, Online Trading and Markets

Photo Courtesy of pixel2013 via Pixabay