Getting started investing your money can be scary. But, if you learn a few basics before diving in, it doesn't have to be intimidating. Years ago if you wanted to get started investing in the stock market, you would have to call a broker. You'd also be paying big bucks just to talk to a broker. Nowadays, there are discount brokers and average people who make their own living by helping people invest their money. There are also user-friendly apps that allow anyone with a wife and a bank account to start investing in stocks. The beauty of using an app is that you can do it anywhere that you have Wi-Fi connection and your phone. I'll be going over the best investing apps in this article. To find out more about each app, simply click on the individual review beside each product.
Here Are the Best Investing Apps of 2018
Stock Market Simulator
Tips for Getting Started in Investing
As a beginner investor, you may not understand how the stock market works or how to play the market correctly. But have no fear. Keep reading on. There are apps designed especially for beginner investors. The technology and jargon is easy to understand even for the most novice of investors. These apps help you to purchase stocks, compare fees, offer suggestions, analyze funds, and track your cash flow.
Perks of Investing your Money
Provides Regular Income
If you are wanting a second income, you normally need to get a second job. But, with investing, that is not always the case. A range of investments including bonds, equities, and property can all provide you with a regular supply of cash flow coming in.
Out Perform Inflation
In order for your money to grow, you will need to earn a rate of return( after taxes) that is greater than the rate of inflation. It's all rather simple. With today's low interest rate, it can be hard to find a savings account interest rate that pays above the current rate of inflation. By investing your money, you have greater potential to outperform inflation which is not always possible with a standard savings account.
By investing your money, you can delay taxation. If you buy a stock and it does go up in value, you won't need to file a return on the earnings. You will only need to report your stock gains when you sell the shares for a profit. On the other side of the coin, if you lost money on another stock purchase, you can use the loss to reduce taxes on your other stock gains.
Frequently Asked Questions About Investing Money
When my money is at stake, or I feel a threat to losing savings or property, I have a lot of questions to ask. I think most people can relate to what I am saying. I've put together a list of frequently asked questions and answers for investing your money.
Why should I invest my money?
You may feel like your money is safe in your savings account, just like people of long ago felt it was safely hidden under their bed. But there are reasons you may want to consider investing your money. To make this brief and as to the point as possible, investing wisely can make you more money.
What types of stocks should I invest in?
This is the big question everyone has. And this is why there are investing apps to help you make the wisest choices when investing in stocks. You will have safe choices and risk choices. As you may have guessed, the stocks that come with risks often have the potential to give you the biggest gains. The comforting thing is that the choice is always going to be yours.
Are bonds safer than stocks?
To give you a short answer, yes. Bonds are issued by the government. They are basically loans that you buy with the plan that you will get paid back over time with interest. There are minimal risks involved. Bonds are considered safer investments compared to stocks, but you also have the potential to make more money in a quicker time period with the stock market.
Why do stock market prices fluctuate so much?
The reason stock prices go up and down so much is because they are affected by the state of the market. Markets can have a change in suppliers, or distribution costs, including new products or services affected by the change in oil prices and market stability.
Things to Get Squared Away Before Investing
1. Have an emergency fund
Before you start putting money away in investments, you will want to make sure you have some money readily available in case of an emergency. What if you lost your job or incurred a medical expense not paid for by your insurance? It's advised to always have 3 to 6 months worth of rent/mortgage, utilities, food money, etc, put away at one time. I personally like to have at least a year's worth if possible. While going through a life-changing event, I needed to utilize my emergency fund. I am thankful that I had my own money to fall back on until I could get back on my feet.
2. Set aside time to invest
As with anything, you will need to set aside time to accomplish a goal. Your goal in investing at the most basic level, is to make money. You will need to spend some time investing each week. Find a time in your schedule during the week that works, and then sit down and analyze what is going on with your money. Making money from investing will not just happen overnight, you need to put time into it.
3. Pay off high interest debt
Before you start investing your money, it's a good idea to pay off high interest debts like a credit card. It would make no sense to gain a little in one area( investing) while losing a lot of your money in another area( credit card interest rates). Try to make a plan to pay off your credit cards and other high interest debts before you start investing.
Brief Overview of Investing Apps
I'm going to cover the top 10 most popular investment apps. This is a brief summary. I'll be covering each app in more detail in their individual reviews. Feel free to reference the table above and click on the individual reviews for more information.
This is one of the most popular investment apps for first time investors. This app will help you to make small dollar investments. This is not a big dollar profit app.
This app is an online investment tool that tracks, manages, and optimizes existing portfolios. A down side is that it only let's you get a three-year overview of your brokerage accounts.
Stock Market Simulator
With this app, you can "try before you buy." This app won't make you money, but it will help you to learn how the stock market works.
This app investigates trends and world events that could lead to investment opportunities. Motif Explorer requires a $250 minimum and charges a commission of $9.95 for a portfolio that contains 30 stocks. Not good for large investments.
Yahoo! Finance looks cool for a personalized user experience. However, it is not your best choice for big time investments.
This app focuses on the basic essentials of investing. This is a great app for beginners.
This app is going to summarize what's happening in the stock trade world. It delivers breaking news, real-time stock market quotes, stock charts with customizable timeframes, and access to full-length CNBC programs. This app saves you time from having to read news from separate sources.
This is a beginner's investment app. It gives investors instant access to auto updating stock quotes. When investors get better at investing, they can switch to BenzingaPro.
This app combines breaking financial news and real-time stock tickers for major and minor stock exchanges. You can customize your own stocks with this app.
Great app for kids to learn about investing. Kids and teens can track their stocks, create a wish list, and even place trades approved by parents.
Investing your money does not have to be an intimidating process. Take a little time to learn about the investment apps out there. They are designed to help you every step of the way. Let your money work for you and grow. It may take a little time getting started, but eventually, with wise decisions made on your part, you should start seeing money come in. I hope that this brief overview of investing apps gave you the motivation to take the plunge and get started.