Thank you to Carl James for sponsoring this post and contributing his insights.
Today we are shifting gears a little bit and doing a fun financial post, since it's been a hot sec' since I've done one of those! Recently, E and I have been all about getting our finances in order. We started looking into life insurance policies, and have been consistently maxing out our IRA's for the last few years. We have a stacked emergency fund and are ready to start investing!
But seriously, I feel BEYOND overwhelmed by the stock market & know I can't be the only one! Snapchat recently went public (meaning people like you and I can buy “shares” of it on the stock market), but I had no idea how to get started with it all and seem to have missed the boat on it a little. I decided to enlist a guest poster to break down this stock market for us confused millennials today:
The Stock Market – What Is It And Should I Try It ?
I know when I used to think of the stock market it was all suits yelling at one another in a chaotic room, with complicated calculations scrolling across screens and papers everywhere. Basically, the picture perfect scene of high stress… and I’m sure for some people it probably still is.
However in recent years the stock market has come on a long way. Today, it's more accessible to the average person than ever. For those who do their homework, the possibility still exists to earn you a small fortune without much work or time spent at all! So here’s what you probably didn’t know about the stock market…
What even is the stock market?
The stock market or stock exchange is where you buy and sell a little bit of a company, with the aim of selling it for more than you bought it. However like any business that company's success will go up and down which is where you have to be clever about when you buy and sell because your profit will being going up and down too.
A stock exchange acts as a marketplace for companies and individuals to buy and sell their stock to people who want to have a share of their company. Companies that list their shares on the stock exchange do so for a variety of reasons but usually for extra money for things such as:
- Starting a business
- Opening a new office/ Shop
- Buy more product
- Product research
- Staff
- Expansion
How to trade on the stock market
Trading on the stock exchange used to be seen as only for big businessmen in suits but nowadays it really is accessible to everyone and more and more people are giving it a go, there are many platforms such as CMC Markets that allow you to trade using your mobile phone or tablet, and to be honest do most of the work for you !
Why trade on the stock market
Trading in this way allows you to do as much or as little of it as you like around your existing job and daily life. However, it's important to keep up to date with what’s going on around the world to give you the best chance at figuring out which stocks will do well (in other words, when it's time to buy or sell). People tend to find the stock market more appealing than putting their money in a savings account since the returns are better. A typical US savings account will earn you .01-.03 percent interest a month, and you'll rarely see a traditional savings account with an interest rate higher than 1.05% today. Historically, people who trade on the stock market see an average 7% return of their investing money. That's a big difference!
Thanks for the simplified info!! It’s very helpful 🙂
this is seriously so useful! I swear my younger brother (who is 16…) knows more about the stock exchange than I do haha def something we need to learn about more! x
This is such a helpful post! Thanks for sharing your insight! I found this so useful as I have been thinking of investing!
This is totally helpful! I have no clue about the stock market – my husband is the financially savvy one in the family.
Wow! I am so glad you wrote this post. I knew very little about the stock market but had been told I should consider it. Thank you for the info. It’s helpful have! Is there a minimum amount that people invest? I’m sure people aren’t going in with $5 to spend. haha.
My dad has gotten very good with stocks, i try to understand sometimes when we talk about it but, I still get lost. It is definitely something I want to learn from him!
You make it sound so simple! You break it down so well!
This is such a great post for us millenials! I don’t have any background with the stock market, but this post made me feel a little better about it!
Super great insight. My family is super involved in the stock market and investing. I’m sure I’ll learn all of this more at some point, too!
http://adoredbyalex.com
I have been really curious about the stock market, but it was something that I struggled to understand. This post made things much more clear 🙂 Off to do more research now!
XO, SS || Seersucker Sass
Thank you so much for this! I had no idea about how to invest in the stock market.
xo // http://www.thematerialgirl.co
This is so not the kind of article I am used to read, but I loved it! Seriously so interesting
This is so helpful! I know absolutely nothing about stocks, but I’ve really wanted to start learning how to invest
I love that the stock market is something that anyone can do and trade in!
This was super helpful to read! I have employee stock options through my company and it has been so beneficial. My husband manages our finances and he tries to teach me, but this post did a great job of making it sound simple.