Yes, investing in stocks is a good way to make extra money. You can be an employee and an investor at the same time. Here are some reasons why you should consider investing in the stock market.
24/5 independent working
Even if you are on holiday, you can make your money work for you. The stock market remains open from 9:15 AM to 3:30 PM- Monday to Friday, whether you are working or not. Also, there is no need to watch a stock 24/7 it operates by itself however the company’s news should be watched to get regular updates and ideas of future progress.
The power of compounding
Stocks have consistently outperformed most other investment options like FD, savings, bonds, golds, etc in the long term. The power of compounding- is the secret of creating wealth. The longer you remain invested, the more your compounding wealth will be there, and even if the sums a small right now they can add up in the future.
Beating inflation
Investing in stocks can help you beat inflation by providing returns that outweigh inflation rates over time. Here is an inflation example: Person A has $10.000 and wants to save all for retirement. Due to a 2% inflation, the worth of $10.000 is only at $9800 the next year, and so on. The Fed prints money so the worth per Dollar declines year by year. For a full explanation of inflation click here.
A stock market is a place for everyone
The stock market is for everyone not just for the rich and smart. You don’t have to be a math whiz, rich, or another Warren Buffett to get started with investing in the stock market. You start by doing your research so you’ll know what’s going on at the businesses you’re thinking about investing in—and be sure to stick with stocks that make sense for your portfolio. It depends on you how much you want to risk when investing. If you don’t want to take high risks you can stick with risk-free companies like Apple or Alphabet (Google) and make a remarkable sum of money in the long run.
In general, millionaires are usually more risk-friendly investors and take advantage of the risk-reward ratio which can pay off big time. Click here to check out some of the more risky stock investing ideas.
Diversification of incomes
A good strategy for maintaining income is to diversify the ways you generate it. For example, if you have a full-time job and occasionally do handy work on weekends, you might also rent out an extra room to a college student or invest in some dividend stocks. If one source of income dries up, you’ll still have others that can help carry you through until things improve. This can help fight dependency from your 9-5 work and can cause fewer working hours in the long run.
Besides stock investments, it’s also possible to invest in cryptocurrencies which are more risky but on the other hand, can pay off big time.