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I’m Saving Money, So Why Invest?

I feel like I’ve mastered the concept of saving money. Like Suze Orman recommends in The Money Class, I live beneath my means and any money that I don’t spend by the end of the month, I put it into a savings account and pretend like it doesn’t exist unless a financial emergency arises. Saving is one way to build wealth, slowly, but I’m quite comfortable with that. When I think about other ways to make my money work for me, I always get terrified when I hear these two phrases: STOCKS and WALL STREET!

Every now and then I do read about stocks and Wall Street and I gain a slightly better understanding of how investing works. Most recently, I read a helpful article on About.com that explains the difference between saving and investing. It explains that saving is a passive way to earn money and investing is a proactive way to earn money. I understood this because putting money into a savings account will allow you to make money but at very low interest rates. When you invest, you have some ownership in the company and can sell your stock to make a nice profit if the company is performing well financially. Unfortunately, investing comes with the risk of losing money, which is what terrifies me. I do know that if you carefully study the stock market, you can learn how to skillfully grow your money.

There’s nothing like watching your money grow without having to clock in and out of work!


Crystal J. Says: How the stock market works : a beginner's guide to investment
Amazon Says: People are constantly being affected by the fluctuations in the global economy and by financial uncertainty - with major impacts on their savings, portfolios and pensions. So more...
Amazon Says: People are constantly being affected by the fluctuations in the global economy and by financial uncertainty - with major impacts on their savings, portfolios and pensions. Some might see recessions as the very worst time to invest in the stock market, but many of the world's most successful investors insist that a market downturn is the very moment when people should be investing.  Fully updated for this fourth edition, How the Stock Market Works tells investors what is being traded and how, who does what and to whom, and how to evaluate both the shares and the proponents' claims about them. Covering crucial issues such as the practical consequences of being a shareholder, this book provides a wealth of information on the stock market and how to use it one's advantage. less...
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Crystal J. Says: Getting started in stock investing and trading
Amazon Says: An up-to-date guide to the complex world of equitiesGetting Started in Stock Investing and Trading walks investors and traders through the essential information they need to k more...
Amazon Says: An up-to-date guide to the complex world of equitiesGetting Started in Stock Investing and Trading walks investors and traders through the essential information they need to know before they decide what kind of participant they want to be in equities. The book is filled with the key strategies and tools and offers a comprehensive guide for those entering this marketplace. The author does not argue that one method is better or more appropriate than another. Rather, he reveals the various methods and lets investors decide for themselves. The book covers investment risks, value investing, market strategies, trading methods such as day and swing trading, technical indicators, and diversifying your portfolio, and * Offers a thorough overview of strategies and tools that investors need to profit from the volatile equities markets * Provides examples, charts, and timely additions that reflect recent changes in the equities marketsOther titles by Thomsett: Getting Started in Bonds and eight editions of Getting Started in Options. This book is another title in The Getting Started series, which makes complex issues easy to understand. less...
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