How Can Investing Lead to Financial Success?

After wanting to be apart of the stock market for the majority of my life I decided to answer the question, How can investing lead to financial success? And the true answer is investing, whether you do it to become rich, have extra spending money, or just for fun, investing can lead you, with safe investing, to success. Investing is risky and that’s why many people do not feel comfortable to invest, but if you never give it a shot you don’t have a chance to make money.  

Source:http://workfromhomereport.net

However, there are ways to invest with low risk factor and this led to one of my major questions of, What investments have the highest returns and how likely are the returns to happen? Bonds and large corporations are a great way to invest safely. This will have slow and low returns but it allows you to have a little extra spending money in your pocket. Why are these low risk? because there is a very low chance these companies are going to fail. Bonds and big corporations have credibility and have a very slim chance they will ever go under. By taking out shares in these type of investments you do have a sort of comfort in investing but you won’t have huge returns. The type of investments that will have large returns are the companies who could fail, many startups and small companies can become huge or just fail are the companies who stock prices can just grow and grow and make you money.. or lose your money.

Another major question that I had to answer to reach a conclusion was, When is the right time to invest? And really there is no clear answer. You need to invest when a stock is low and you know it is going to rise. This is hard to tell depending on which stocks you're investing in, however in this day and age with the stock market growing every single day most stocks are bound to grow. Growing stocks lead to more money in your pocket this is why I would argue to invest in a risky or start up business because if they are going to grow they are going to grow big time!

This also gets me to the question, What type of people are investing? Many people are investing and many people are investing different ways. Type A investors are investing just for some extra pocket change, they don’t spend a lot of time investing, and they really have no formal background in investing. Type B investors invest more money and are looking for some large gains, however they rely on professional investors for help. Type B investors know what they want to see and will spend time getting it. Type C investors are full time investors, they spend majority of their lives investing and know the stock market very well. So the answer is everyone is investing, but they all invest differently and expect different results.

My final sub question I answered was, What is the key it investing? The answer is don’t wait. Yes saving is important but interests rates are too low and you won’t capitalize on your wealth. To capitalize on your wealth you have to invest! If it is too nerve racking to invest just invest in stable stocks like big corporations or bonds. If you never give the market a shot you will never capitalize on your wealth.

To wrap up, when I asked the question, How can investing lead to financial success? I found very interesting answers. To become successful you need to invest and not wait, savings don’t grow, you have to hit a stock at a right time, which means you need to make sure your stocks will grow. Risk is reward. I also found you don’t have to spend everyday investing to be successful you can be an amature investor and still make money, and finally the riskier the stock the biggest growth or decline you’ll see.