Stock Buying Made Easy

Are you interested in stock buying?  Are you new to it and have no idea where to start?  Don’t worry, stock buying is not as difficult as you may have been led to believe.  You can take the hard route, or I can show you the easy route which I am going to outline below.

First, Save some Money

Before you invest anything anywhere and start stock buying, you have to have money to invest.  I’m sure you already know this.  While you don’t need to have $10,000 to start investing, you should have as much as you can get your hands on.  It is possible to invest with $5 to start, but I wouldn’t recommend it.  The only way you can do this is through buying stocks with an online broker and you’d have to pay a commission that is equal to or greater than your investment.  You don’t want your expenses to be more than 2% of your investment.

Start out by putting everything you can save in a high interest online savings account.  This way you can at least earn a little interest on your money while you save.  Try to save a little bit of money out of each paycheck.  For example, you could save $5 a week or $100 a week, depending on what you can afford.  Keep in mind that the more you save, the more you’ll be able to invest, and the more money you’ll make over time.

Second, Find a Mutual Fund to Invest in

Why am I recommending mutual funds?  Because that is how you truly make stock buying easy.  You don’t have to research stocks to buy them, you don’t have to keep track of your stocks, and you don’t even have to pay any fees if you choose no load funds.  It is a no-brainer how easy it is to use mutual funds, and they have many great benenfits.

If you are looking for a mutual fund to invest in I recommend buying stocks with Sharebuilder.  You can buy individual stocks with them or you can buy mutual funds, and they have great selection to choose from with different varying risks.  They offer very low fees and a wide selection of services.

Third, Start Stock Buying

Once you have enough money to start investing, some require a minimum amount such as $1,000, you can just start investing.  Choose your fund and invest as much money as often as you can.  You don’t have to worry about buying individual stocks because the fund manager does this for you.  It’s just that simple.

Now you can take all the money you were saving to invest each week, ie. $5 a week, $100 a week, etc. and invest it in the mutual fund.  If you want to get more involved in your stock choosing, you can start studying and learning all about investing in stocks, and then when you’re ready, put the money into stocks of your choice.

There’s no reason to put off investing because mutual funds make it so simple.  You can work your way up to more complicated stock buying and researching your own investments.  The best thing you can do now is start saving and investing!

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Get Money to Invest

Before you can ever make a dime stock buying, you ned to have money to buy the stocks.  That is going to take some discipline on your part because you will most likely have to earn the money.  Even if you are lucky enought to have several thousand dollars already saved or inherited, you still need to continue to invest more and more each month.

Start buy eliminating or reducing your unnecessary expenses.  Stop wasting money on junk food and eat out less often.  Don’t waste money on clothes you’ll never wear and always track your money so that you aren’t wasting it.

Also, look at what money you borrow.  If you need to borrow, borrow smart.  You could get a low interest credit card, log book loan, or any other loan that you may need.  Pay it on time and try to pay it off as soon as possible in order to minimize how much you end up spending.

When you are able to save regularly, you will be able to invest regularly, and that is very important.  If you can invest your money on a regular basis, at least monthly, you can get stocks at a good price and make more money.  After all, that is what you want to do, right?

Finally, if you’ve saved all you can and can save no more but you want to invest more, you might want to get another source of income.  You can get a second part time job or you can start your own business on the side.  All you have to do is find a way to make more money and do it faithfully.

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