Investing in the stock market is a smart way to create wealth. There is a misconception that the stock market is reserved for high-wage earners, including millionaires and billionaires. Nothing could be further from the truth. While it is true that most of these same individuals do, indeed, invest in the stock market, one need not be a high-wage earner to invest. In fact, “average Joes” are becoming millionaires daily investing in stocks. They understand the principle of compound interest that helps them multiply their investment dollars.
Building wealth in the stock market is about adding small, regular investments into a financial portfolio. If you don’t yet have a financial portfolio, I strongly encourage you to set one up. Include an emergency fund, stocks, and other financial securities. You can’t afford not to!
Creating wealth is easier than you may think if you take it one step at a time. You can begin building wealth immediately by investing just $5 a day. Take a look at your current spending habits, and I can almost guarantee you can come up with $5 you’re spending on non-essentials that can be diverted to building wealth. A few examples might be Starbucks, nails, lashes, weaves, designer bags, clothes, eating out, etc. While there is nothing wrong with these purchases, they should not be prioritized over your financial future.
If we only view money as a means to an end, then money has no value except to pay our bills and, perhaps, spend on non-essentials. We must condition the mind to view money as a means of exchanging value where we’re not working for money, but money is working for us. Investing in the stock market is a means of compounding our money by helping accumulate wealth over time. Once we’ve made the mental shift, we’re on our way to financial freedom.
If you’re just beginning your journey to financial freedom with limited finances, there are 3 key principles you’ll need to apply:
You’re never too young or old to invest in the stock market. Your age might determine your investment strategy, but both outcomes can be just as rewarding. If you’re new to stock market investments, you can start by using Exchange Traded Funds (ETFs) to generate income. An ETF is a basket of stocks that you can buy and sell on the stock exchange. You get access to hundreds, even thousands of income-generating assets in a single purchase. ETFs trade like individual stocks. To learn more about pursuing income using ETFs, click this link entitled 3 Reasons to Pursue Income Using ETFs to watch my video.
My challenge is that you will commit to investing $5 a day and begin creating wealth. There are several brokerage platforms that will allow you to invest in individual stocks and ETFs by purchasing partial shares of these securities beginning with $5.
Be sure to do your research and consult with a skilled professional before making financial decisions.
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