Why should you start investing money in shares?

Keeping money on bank account is pointless. I was working the whole summer and earned about 10000€, should I keep them on the bank account or do something wise with them? Of course the latter.

If I don’t need so much money right now, I could as well use them wisely and make some more money. If you don’t have extra money at the moment, you can start to save for example 50€ per month and you’ll see the results in long term. Nowadays it’s very easy to find information about the stock markets. Sites like Kauppalehti.fi offer daily news and updates on the current financial situation of the stocks.

 money

Things you should remember when start investing on shares:

  1. If you put all the eggs in same basket, you have higher risk to lose them all. Remember to decentralize for at least 5 different companies.
  1. The bigger company, the lower risk. At least usually. There is not so high risk in big companies to bankrupt.
  1. Read news about companies that you have shares from. The more information you have about your investments, the better and safer.
  1. Buy more shares with dividends. Dividends have a big role on investing in shares and on long term dividends are important part of increase in value.
  1. Be patient. Don’t rush on making decisions about selling and buying, get as much information as you can and don’t ever panic.

You can get started very easily and ask for help from your bank or search the Internet. The sooner you start, the more you will have on your old days in the bank!

Sources:

Rylan, Philip, 2003. Essential Investment

Malkamäki, Markku & Martikainen, Teppo, 1989. Rahoitusmarkkinat

Lehtonen, 10.9.2013. http://www.summarum.fi/osakesijoittaminen-aloittelijalle-5-askelta-voittoon/ Read 11.10.2016

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3 Responses to Why should you start investing money in shares?

  1. snowgirl says:

    Those tips are very useful, if I decide to start investing my money in shares someday! 🙂

  2. Informative article and simple tips for someone who wants starts investing in shares.

  3. lindpih says:

    A very good summary about investing in shares! Definitely worth thinking about.

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