This is actually a common thinking. I bet several of you reading right now don’t have a low cost brokerage where you actively invest in stocks. Mainly because,
- You don’t understand the stock market
- You think you will lose all of your money
- You would rather save all of your money because, you are just comfortable doing that
- You feel it’s too much effort to constantly monitor your money in the form of stock
Honestly, those were my same concerns. This way of thinking was partially my fault because, I had no guidance and chose not to research and seek out guidance. I was going off of peoples opinions and those who were also fearful of the stock market. I didn’t get a second opinion, because I thought I will lose a lot of money. My assumption was the best way to build wealth is just to save.
I would still say my assumption was not completely incorrect, best way to have more money is to save – I got this right! However, growth doesn’t come with just saving! Best way to build your wealth is to invest.
In the beginning of my 20’s, if I learned and invested aggressively, I would have been retiring with millions at 65. Okay scratch that thought because, what you should be doing in your 20’s is investing in yourself by exploring and gaining that skill set that will be your asset to bring in more income. However, what people fail to do is think about investment at all!
Today, 19 year olds are investing like no tomorrow. So I think, you should start now as well. At least for your retirment, you should be saving and investing. Investing does not have to be hard. Open a Questrade account and within that open a Retirement account. Put in money every month or a lump sum prior to your tax year and create a ETF portfolio.
You just have to buy ETF’s that track the S&P500 or Vanguard like QQQ or QQQJ or Vanguard. These are good ones, and I hold them. But you should also do your own research.
The real question you should ask me right now is why? Saving your income should be the same with less risk. The answer is, when you buy ETF’s every month, quarterly, or yearly, when ever you can, your money is growing in compound. If you leave your money just stagnant in your bank then it loses value due to inflation!