The Top Benefits of Investing in the Stock Market You should Know about

StocksThe following article is a guest post.

With the financial systems around the world undergoing major reforms, with banks offering little value on savings accounts, with governments implementing strange policies and risky social security schemes – with a complex, integrated, and global monetary structure in place, it may be hard to decide on the best way to make your money grow. Simply saving money is no longer an option; inflation will eat away whatever interest you get paid. The only way to ensure that your money grows – at a steady rate and with profitable returns – is to invest. But how do you go about it? Following are some of the top benefits of investing in the stock market and why you should seriously consider it.

Stocks – what are they?
A stock, in essence, is a share in a company. This means that if you own a stock, you own a certain share of a company – you, and all others who own that stock, own the company. It entitles you to the profit that company makes. To put it in its simplest terms, a person who buys a stock owns a percentage of a company, has people working for him or her, and will receive a certain amount of money every now and then.

Why choose stocks?
There are many different investment opportunities – so why own stocks? What makes a stock better than the other options out there? Historically speaking, stocks give much better returns in the long run than any other investment vehicle out there. Statistically speaking, they are more lucrative over time. However, there are also other benefits:

Liquidity. Stocks can be bought or sold at will; meaning that, unlike real estate or other business ventures, you can turn your stocks into money very quickly.

Cost-effective. The buying and selling of stocks is done through a broker, who charges a very minimal fee. Technology has made the world of brokerages very competitive and has substantially lowered fees and commissions.

Investing or trading. You can also trade stocks if you choose not to hold them for a long time and receive the dividends. You can buy low and sell high and profit with price fluctuations.

The main goal of a company is to make money – that is, simply speaking, the reason for its existence; to provide jobs, to bring great products and services to the market, and to earn money for its staff and stock holders. By owning stocks, you own part of a company – by owning stocks, you have people working for you. You have a corporation whose aim is to have your investment grow. And if you’d like to find out how you can maximise your stock market investments, speak with an expert from CMC Markets today.

Five Easy Tips for Saving Money

Saving Money With PIggy Bank

There are a lot of reasons why you might want to put some money aside. It could be for a vacation, a new car, or some re-modelling for the house. Here are a handful of tips for how to save money, so hopefully you’ll watch that rainy-day fund grow.

Save on your energy suppliers
Knowing where to shave money off your bills is something everyone needs to learn how to do and switching energy suppliers is a great way to start. Don’t be afraid to switch when you spot a better deal elsewhere. Even if you don’t really want to move, you should still shop around towards the end of your contract; if you find a better rate, you have a bargaining tool to approach your current provider.

Have a target
You should always have a target in mind for whatever amount you need to save, and that will depend on what you’re saving for. If it’s something small like a birthday party for the kids, then you can set a weekly target so that by the end of the month you’ll have your spare cash.

Or it could be a much larger target, like a deposit for a new home. In this instance, using online tools like mortgage calculators will be able to help you figure out how much your monthly payments would be, and so how much of a deposit percentage you need to save.

Learn how to shop
Learning new ways to shop online will help you in your money saving quest. Look for sites that sell things in bulk so that you can get a higher discount, look for new registered customer offers, and always consider sites like eBay for those big ticket items. Buying things which are second hand doesn’t mean they’re in bad condition, and it can often be the best way to bag a bargain and pocket the extra cash.

Stick to your budgets
From shopping lists to monthly outgoings, you should create consistent limitations on your spending. When you create your monthly budget, set aside your savings goal first, and build the rest of your budget around that. Doing it in this way means that you’re guaranteed to hit your target every month, but also that you can compensate for things like day trips with the kids. Instead of going to a costly theme park, go for a picnic that you can put together yourself.

Give up an unhealthy habit
Have you ever given up something for a short amount of time? Well, giving up something on a more permanent basis can help keep your wallet a little fuller. Whether it’s smoking or too much chocolate, pocket the savings you make from it, and it should give you a sizeable saving at the end of the month, as well as a healthier lifestyle.

Hopefully you will find these top five tips useful – please share your own tips in the comments section!

This is a collaborative post.