The common misconception about stocks is that they are only money-making options that can be considered by the rich. Owning stocks is like a status symbol; if you can show a stock certificate to your friends, it means you’re well on your way to the big leagues. But getting rich isn’t that easy, and acquiring stocks isn’t impossible for working class people at all. Here are some brutally-debugged myths about stocks that might interest millionaire wannabes and encourage ambitious workmen:
Myth #1: Stocks are ONLY for the Rich
Stocks can be purchased according to a certain number of shares, and the earnings from your shares can be used to purchase more shares, and so forth. In short, you don’t need millions to start investing in stocks; you simply have to save enough money to purchase a minimum amount of shares to acquire a stock certificate. In that case, even minimum-wage workmen can save up for a minimum amount of shares in two years. Just make sure to invest your money on a company that has proven itself capable of making your money earn more money. The safest bets are the utility companies.
Myth #2: Stocks Will Lead You to Riches
The amount you earn will depend on the amount of money you invest and the competency of the company you’ve invested in. After saving up enough money, your next priority is to look for a good company to invest in that can boast a track record of stock values constantly on the rise. A secondary consideration is the interest rate the company offers for your stocks. Some new companies may lure you with high interest rates for your prospective investments, but it is safer to invest your money in a company that has proven itself lucrative and capable of helping you earn with your shares, even though their interest rates are lower.
Myth #3: The Money You Invest in Stocks Will Never be Seen Again
True, if you invested in a bogus company. But stocks retain their value in terms of the number of shares, even if the monetary value of the stocks momentarily dwindles. All you have to do is wait for the stock value to rise (and it will always do so, unless the company wants to go bankrupt on purpose) and then you’re back on track. If you’re really afraid to lose money on investing, maybe it’s better not to purchase stocks and simply store your savings in a bank (where it will earn 0.05% interest annually as compared to 6-10% interest offered in stock deals). Besides, there is a “stop button” feature in most stock programs that allow you to sell off your stocks before the values go down again, preventing you from incurring more losses.
Even workmen have the right to dream big and try to reach the topmost section of the societal pyramid, so there’s nothing wrong with trying to invest in stocks even with your meagre savings. What is important is you are conscious on how you can get rich, no matter what occupation, age, and educational attainment you have. All it takes is a little patience and money sense, and you will get to the road of riches in no time.