Well i took a leap into the stock market with the help of Mr. Pancakes. He’s been dabbling for several years and definitely trust him to be my stock broker and adviser…after all…the money i am using is also his money…heehee so he would not “madoff” with my money. That was a bad joke…i know.
But seriously the reason i decided to leap into the stock market was because Bank of America was ridiculous with their interest rates. We had a substantial amount of money in our savings and all we received in interest was between $0.01-.32cents. At this rate…we were NEVER going to make money the way we wanted to.
Additionally, Bank of America is ridiculous because they were charging me to transfer my own money into other accounts. They were charging me more money than they were giving me in interest. Which then HIT me…the banks are getting over on me!!!! And i decided to do something different about that. I decided to take my financial power back by closing ALL (2) my savings account and just have one checking account. And then it hit me that i need to begin thinking about other methods of saving.
Saving just to save for something that is coming up is a good idea in a money market account however, when it comes to saving long term and or retirement….it’s important to have a higher rate of returns. When you think about it, the banks charge their customers between 9-30% on credit cards and other loans however, when it comes to customers saving accounts….you get barely .10cents on a savings on $5000. It’s super pathetic when you think about it.
Now of course money markets and other savings options BUT in the long run…the stock market made the most sense in terms of my returns. Saving on the stock market is not for the faint of heart however, for me it made the most sense. As it’s true for most things…don’t do anything you are not passionate and or educated about, especially when it comes to the stock market.
There are too many times when we don’t think ahead into our future and or about our finances. And we live life just to live. But we are blessed to live a very long life and in order to have the lives we want…we need more money and want to do this without working into our late sixties and seventies. And one of the best ways to do this is invest our money…and essentially invest in our future.
Here are a few things to consider prior to leaping into the stock market. Mind you, i am not a professional stock broker and I am far from being knowledgeable but these are the few items i came up with while going through my own experience.
1. Choose a stock that you are passionate about (essentially choose a company/product that you use on a regular basis.)
2. Be well versed in the company you chose…educate yourself like you would when you are buying something big and expensive.
3. Don’t be afraid to lose money because you will gain money too…just think 1 cent interest is so much better than losing $10 and then possibly gaining $25.
4. Think long term…this is not a short term investment. You are investing in your future…unfortunately we will not be young forever.
5. It’s okay to not leap if you are not ready. And it’s also okay to leap out when you leap in there.
Whatever you decide…the message of my post is we shouldn’t be naive about our finances and the state of our money. No one is going to make us rich and wealthy but ourselves so be kind to yourself and take care of your money.