Investing in companies on the stock market can be a great way to increase your income. Investment also build wealth for your retirement. If you want to learn more about stocks and where you can buy them, please read our What is a Stock and What is the Stock Market articles.
Many people invest in stocks due to their liquidity and the low barrier to entry. To purchase a property you often need a large amount of money for the deposit. With stocks you can start investing for very low sums of money.
Historically, stocks have performed very well compared to keeping your money in the bank or through property investing.
Thanks to the internet, it is now possible to purchase shares from around the world right from your mobile phone. There is also far less paperwork when it comes to purchasing shares compared to buying a property. If you would like to learn how to purchase stocks, please read our How to invest in Stocks article.
Stocks are also very liquid, which means you can buy and sell them easily in a short amount of time. If you want to sell a property you would need to speak to a real estate agent, list your property, have inspections and negotiate the sale before a settlement period which takes months.
With stocks you can often place an order within minutes.
While stocks are easy to purchase and can deliver great returns, it is important to remember that owning stocks can be more risky compared to holding your money in the bank or with investing in real estate.
If it is your first time investing, we recommend that you only invest your spare cash in large “blue-chip” stocks as they are seen as less risky. Remember: only invest what you can afford to lose.