When investing in the stock market, you need money. You don’t have to be wealthy to invest in the stock market and you can start investing in the stock market with $10 dollars. Some of my stock that I like the most cost under 30 dollars so anyone can invest in the stock market with today’s app where there is no fee to buy or sell. The question is how much of your saving do you invest in stocks? This answer is tricky to answer but before I start, I am not an stock market expert or a financial expert and in this post these are just my opinions about saving money and the stock market, please do your own research before buying any stock or taking any money out.
How much of your saving do you invest in stocks?
This is a 2 part answer. Yes we should have a saving account so we can save money and have money when something happens and we need money to fix it. We need an emergency saving just in cases something happens. Please keep in mind that money in a saving account will grow very slow if any and it’s really not passive income. The rates you get in a saving accounts is not all that good and that money is not growing. Investing the stock market, over time will grow money and you can lose money as well if you don’t do the right research my the stocks that you buy.
So here’s what I do?
I do save money in a saving accounts just for if things break down and I need that money to fix it. After saving for about 1 year, I tend to take some money out like 400 to 500 dollars and invest in the stock market. That way I still have money just incase something happens and I am investing some of that money. Keep in mind that I buy dividend paying stocks so I get paid for just having the stock. We need to make our money make us money while we sleep and having all that money in a saving account will not do that. remember we are building passive income and we need a second income stream rather than a job.
So I know it’s hard to sometimes to take money out of your saving but that money will be invested. When you get paid dividends. instead of using you savings and pull money out, you can use dividends to buy the things you need. With a bank, the rates you get is based on how much money you have in the bank. With stocks, it’s based on the amount of shares that you have. Keep in mind that we are building another stream of income so we will not see the results now but you will in the future. We have to make our money work for us and make saving money will not day that.
So what I do is take some of the money out of my saving and invest in the stock market. My goal in the stock market is to build another stream of income to pay bills so I don’t have. Passive income is my goal at the end of the day.
