For many, the thought of investing in shares is something that won’t have ever crossed their minds. Investments of this kind can seem incredibly daunting and it isn’t uncommon for people to feel as though they know nothing about shares, so wouldn’t want to waste their money. Thankfully, there are now so many different financial investment classes you can take to help you understand the basics of shares so, there is nothing stopping you.
For anyone that is curious about shares and whether they are actually worth your time and money, the team here at Financial Investing and Trading have put together a list of reasons why all families should at least consider investing in shares. Keep reading today to find out more about the benefits to this type of financial investment.
Easily grow your money
You may think it is incredibly ambitious to invest in shares with the hope of family financial security, but it is possible, especially when you know what you’re doing. Simply put, you will be investing into a company, so you become a small shareholder of this organisation.
There are two ways you can make money from shares; the company will pay a portion of its profits to you in the form of dividends and, you can also sell your share at a later date too, ideally for more than you paid for it in the first place.
Obviously, there are different factors that can affect the amount of money you get out of a share such as, which company you invest in and also how much you invest but, nevertheless, it can be a really effortless way to grow your money.
Tried and tested method of investing
Shares are one of the four main investment types, alongside cash, bonds and property. Whilst they do have an element of risk to them, they can offer you much higher returns than other options that are available.
You will be surprised just how popular investing in shares is, and more often than not, people don’t just invest shares in one company. It really is a tried and tested method which you can trust has been incredibly successful for many people over the years.
Anyone can do it
Unlike other forms of investing that can be complex or lengthy, anyone can invest in shares. Even if you aren’t confident in doing this yourself, you have the option to use a financial adviser or an investment manager who can buy the shares for you
Nowadays, you can even buy shares of companies online. Often once you have set up an account with an online broker, you can buy stocks and shares in minutes. Sometimes, online brokers even allow you to do this commission free.
Prevents you from dipping into savings
The majority of families will have a savings account linked to their normal bank account. There is no denying that it is incredibly easy to dip into these savings and take money out of them whenever you like. In fact, online banking apps make it easier than ever before to do so.
When you invest your money in shares, whilst you can sell your share to get your money back, it isn’t like popping money into a savings account. The majority of people are much less tempted by their money if it is out of their account and when invested it isn’t as easily accessible.
Investing in shares
It is clear to see why so many people take the time to get to know how shares work and then go on to invest their own money into them. There is no denying that the benefits of doing so greatly outweighs any worries that you may be having in this regard, and as long as you take the time to ensure you understand how shares work, there is no reason why you can’t reap the benefits of them too.
If you would like to find out more about how to invest in shares, visit the Financial Investing and Trading website today. We can provide you with the perfect beginners guide to investing in shares and our online courses are perfect for anyone in your situation. Learn how to provide financial security for you and your family today.