Why You Should Buy Stocks and Invest in the Markets

Why you should Buy Stocks and Invest in the Markets? Plain and simple, buying stocks is the easiest way to create wealth. Investing is relatively simple and the rewards are great. By Investing in the Markets it will open up the world to you offering you more money to do what you want. Money gives you opportunities so investing will allow you to explore your opportunities whether they are retiring in a beach house in Mexico, paying for child’s education, or just for traveling the globe. Realistically, unless you have a top-notch salary, investing in the Stock Market is the only true way to reach financial independence.

Benefits of Investing and Power of Compounding

Lets put it real simple to show you the benefits of investing. Say you put $2,000 of your savings into the stock market and invest within the S&P 500. Well the S&P’s historical average is 10% and would make your 2,000 worth $34,898.80 after 30 years. Now do you see the gain from investing? On the contrary if you put that same amount of money into a savings account your $2,000 would only be worth $3,622.72 30 years later. Quite a difference huh? This number will shock you even more. If you invest $1,000 a year in the S&P 500 after 45 years it will have grown to over one million dollars. Overall you only added $46,000 over the time but compound interest and solid investments did the job for you. Below is a graph that shows the power of investing and why you should put your money in the Stock Market rather than a CD or Bond. Historically overtime CD’s and Government Bonds have averaged around 5%. The Stock Market has averaged 10% over the same period and if you learned how to trade yourself or followed Stocks on Wall Street you could easily achieve 15%-20%.

Growing At

Shocking what a few percentage points can do and why it pays off to take some risk. Remember you are a long-term investor so you’ll go through the bull markets and bear ones but overall your money stays put and grows exponentially.

Time Value of Money

Lets say your parents start you investing when your 15 years old with a simple $100 dollar bill. Look how that simple bill will grow:

Growing At

As you can see the reason you buy stocks and invest in the markets is to grow your money so you can retire safely. Buying stocks is the fastest way to grow your money but it comes with assuming lots of risk so be careful.