Time is on your side when it comes to investing. The earlier you start the better. As the Chinese proverb goes “The best time to plant a tree was 20 years ago. The second best time is now.” I believe that everyone, particularly young adults, should be investing in the stock market. Allow me to explain why.
If you find yourself asking, “What is the stock market?” then you should definitely do some more research first, but in brief the stock market is simply a place where businesses go to raise money, and investors go to earn money. Investors use cash to buy part-ownership of businesses, and then businesses use that cash to expand operations. The idea is that by expanding the operations of a business, the business becomes more valuable, and therefore investors earn a return on their money.
Apple, maker of the iPhone, was originally just Steve Jobs in a garage with an idea. An idea by itself isn’t worth a whole lot, but with the combination of both cash investment and time, Apple has grown to be the single most valuable company in existence valued at over $1 trillion dollars.
Written out a trillion looks like this: $1,000,000,000,000.
The point here is that the stock market presents an opportunity for individuals to grow their wealth and the earlier you start the longer you have to grow that wealth. I’m not saying investing is an easy task nor am I saying that growing wealth is something you can expect to do quickly. Investing is risky and requires lots of patience. If you are reckless or impatient you could end up losing all of your money.
If you want to know more about how to get started in the stock market then be sure to check out Part 2 of our Beginners Guide.
If you find yourself asking, “What is the stock market?” then you should definitely do some more research first, but in brief the stock market is simply a place where businesses go to raise money, and investors go to earn money. Investors use cash to buy part-ownership of businesses, and then businesses use that cash to expand operations. The idea is that by expanding the operations of a business, the business becomes more valuable, and therefore investors earn a return on their money.
Apple, maker of the iPhone, was originally just Steve Jobs in a garage with an idea. An idea by itself isn’t worth a whole lot, but with the combination of both cash investment and time, Apple has grown to be the single most valuable company in existence valued at over $1 trillion dollars.
Written out a trillion looks like this: $1,000,000,000,000.
If you want to know more about how to get started in the stock market then be sure to check out Part 2 of our Beginners Guide.
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