If I Had Only $5000 To Invest, I Would Not Invest In The Stock Market!
When people find out that I invest regularly in the market, they often ask for my advice.
They will ask for a good stock pick in which to invest their hard earned money.
If they are just starting out the answer I give them may be somewhat surprising.
If they are beginning with a small amount of money such as $5000, I try to steer them away from the stock market.
If I had only $5000 to invest I would not be investing in the stock market.
I would be investing in myself.
For the purposes of this article let us assume that you are in your twenties, work from 40 to 60 hour per week, and only have $5000 to currently invest.
Let's say that you are willing to put this money at risk and you really want to get as high a return as possible.
You are willing to put in a little time and effort to grow this money at the end of the day.
You could make some money by investing in stocks but you could also lose some money.
Anyway, it is not likely that this would be your optimal growth path.
Investing in safer investments such as bonds or treasuries would only yield slow growth.
The path I would suggest you look into is to start your own business in your spare time.
You could possibly leverage the expertise you have developed on your job to launch your own enterprise.
Perhaps you have other skills.
Maybe you have a hobby or passion that you could develop into a thriving business.
If you start your business online, you could keep tabs on it during your break time at work.
There are many websites that you could use to conduct your business.
Many companies will let you become affiliates and sell their products from your websites.
Just write about the things you enjoy and build your business at the same time.
No, if I had just $5000 to invest I would not be investing in the stock market.
I would continue to grow my next egg.
After you build up that nest egg to around $25,000 then I recommend you commit a portion of it to the stock market.
Until then continue to build your capital base and learn more about investing in stocks.
Do not rush into investing in stocks until you have built up adequate resources.
They will ask for a good stock pick in which to invest their hard earned money.
If they are just starting out the answer I give them may be somewhat surprising.
If they are beginning with a small amount of money such as $5000, I try to steer them away from the stock market.
If I had only $5000 to invest I would not be investing in the stock market.
I would be investing in myself.
For the purposes of this article let us assume that you are in your twenties, work from 40 to 60 hour per week, and only have $5000 to currently invest.
Let's say that you are willing to put this money at risk and you really want to get as high a return as possible.
You are willing to put in a little time and effort to grow this money at the end of the day.
You could make some money by investing in stocks but you could also lose some money.
Anyway, it is not likely that this would be your optimal growth path.
Investing in safer investments such as bonds or treasuries would only yield slow growth.
The path I would suggest you look into is to start your own business in your spare time.
You could possibly leverage the expertise you have developed on your job to launch your own enterprise.
Perhaps you have other skills.
Maybe you have a hobby or passion that you could develop into a thriving business.
If you start your business online, you could keep tabs on it during your break time at work.
There are many websites that you could use to conduct your business.
Many companies will let you become affiliates and sell their products from your websites.
Just write about the things you enjoy and build your business at the same time.
No, if I had just $5000 to invest I would not be investing in the stock market.
I would continue to grow my next egg.
After you build up that nest egg to around $25,000 then I recommend you commit a portion of it to the stock market.
Until then continue to build your capital base and learn more about investing in stocks.
Do not rush into investing in stocks until you have built up adequate resources.
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