Thursday, February 18, 2016

Top 3 Reasons Why You Should Invest in the Stock Market



Gone are the days that you  need to save a lot of money to start investing.

Time to get to know why every Filipino either you are young or not so young- should get involve into our economy’s rapid growth.

I believe there is no such thing as a perfect investment yet everything is dependent on the person’s understanding, investment appetite and purpose.

Execution also plays an important part. You need to act now and progress as you learn the skills along.

Let us discuss today the top 3 reasons why considering Stock investing as one important medium to grow your funds.

1.       Cheapest
It is one of the cheapest methods of investing.

Aside from its convenience due to availability now of online accounts.

It has become more affordable by the lower income segments as most brokerage lowered down their required minimum amount to start up and open an account.

 Most online brokerage now allows you to open an account with 5 thousand minimum cash.

Some online brokerage even allow you to open trading accounts (term called for accounts used for stocks) for free given that you have a savings account with them- mostly applicable to banking institution with stock trading facility.

Once you got their requirements and your account gets activated you can start buying and selling stocks right away. Easy  and similar as online buying of stuffs that you like in E-bay or Amazon.

2.       Leverage
You can use it as a sort of ride-on to most successful companies in the Philippines.

Imagine you do not need to do the trial and error of complex business building up, maintenance and overheads- operations, machines, logistics and people to give salary on.

You can also avoid too much thoughts on taxation.

Although you still need to pay tax in buying and selling of stock shares that is automatically deducted whenever you buy or sell.

It is indeed simpler than doing business.

Once you leverage- as stock holder of the company you choose - when the company grows, your money grows with them.


3.       Grows your money over time
One of the best reasons why Stocks can help you grow your funds because it somehow multiplies your money over time.

As stock prices appreciate your money grows too.

Stocks has no limit on its possibility to take gains. It can start from as low as almost 0% to as high as 10,000% or even more. This is accompanied though with due diligence and constant study.

Once you get the right stock and ride on for the longest time then your off to your dream for financial independence.

This is the reason why the greatest stock investor of all time- Warren Buffet able to create his wealth because he is able to keep his stocks for the longest time ever. Longer than anybody else in the world. 

It is like growing a tree.

 As good companies updates with good revenues  they provide dividends (extra cash or extra shares).

The companies gives back to their investors as a sort of thanking them for entrusting their money to them which where vital for their business to expand its operations.

So you got price growth, dividends from cash and dividends from shares as possible way to grow your money through stocks investing.

Hope these 3 Reasons serves you well. To your Financial Freedom!



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