10 Ways the Stock Market Changed My Life
The stock market has changed the lives of many ordinary people by transforming them into multimillionaires. Although this may seem like something that only happens in the movies, it’s more likely than you think. Over the past 100 years, many average people have gotten involved in the stock market and have been able to live lives of luxury as a result. If you want to join these individuals, here are 10 ways that the stock market can change your life just like it has changed theirs!
1) I Learned How to Make Smart Decisions
When you’re betting money on something, it’s important to understand why you’re betting that way and not some other way. It also helps to have an idea of what makes your investments more or less risky. For example, investing in technology stocks in 2018 is a much riskier bet than investing in utility stocks, because tech companies are new, untested ventures while utility companies are established with plenty of data behind them.
2) I learned What it Means to be in Debt
Debt can be a very positive thing—it’s basically how you invest in your future. Of course, it can be scary, too. The stock market is a great example of debt: if you choose to invest in stocks, bonds or funds, you are essentially loaning money to companies (and governments) so they can grow and prosper.
3) I learned How to Trust my Instincts
I remember very well when I learned to trust my gut instincts. Back in college, I took a class that really sparked my interest in stocks. I listened to my professor and he suggested I start small with a few shares of stock, just as practice. So one weekend, armed with a little extra cash from some part-time work and confidence from a good teacher’s recommendation, I walked into my local brokerage office with an envelope full of cash and bought some shares of Mcdonald’s.
4) I learned How Money can Affect Relationships
When I first moved out on my own, one of my biggest fears was how it would affect my relationship with my mother. Would I feel too independent? Would she feel like I was too grown? Well, I needn’t have worried. The biggest thing I learned is that money affects our relationships in complex ways. Money can be a tool for helping your family to bond or become estranged depending on how it’s handled—and also how they handle it!
5) I Learned That Rich People Aren’t Always Nice
The wealthy aren’t afraid to get into heated arguments with one another, nor are they afraid to let their anger show when a deal falls through. I learned that rich people (especially when they’re losing money) can be very mean.
6) I Learned How Hard It Is to Take Risks
Everyone has different risk tolerances—that’s why there are so many individual investor types. But everyone also has to learn how to take calculated risks in order to succeed in life, and investing is no exception. Learning how to deal with your emotions and make smart choices when you don’t have a lot of money on the line can prepare you for other risky situations down your road. Taking calculated risks that lead to big wins can help build confidence—and even bigger successes.
7) I Learned Not Everyone Shares My Values
The idea that you can make a lot of money in stocks is exciting, but it’s important to remember what’s truly important. If your pursuit of wealth means you won’t spend time with your kids or spouse, you should rethink your strategy. The rewards from building strong relationships are greater than any moneymaking opportunities.
8) I Learned to Stop Trying to Please Everyone
The stock market is a zero-sum game, meaning for every person who makes money, someone else loses money. So when you’re pursuing your financial goals, it’s important to put yourself first and let go of concern for what other people think. Chances are if you’re spending all your time trying to please everyone around you, you won’t be able to devote enough time and energy into making smart decisions with your finances.
9) I Learned Money Doesn’t Solve Everything
I learned money doesn’t solve everything. Before I had any real income to my name, it didn’t bother me that so many people around me weren’t taking care of themselves. But once I had my own income, I quickly realized that my paycheck wasn’t going to make all of my problems go away — and it definitely wasn’t going to buy me happiness.
10)I Learned That a Good Financial Plan Needs Capitalization and Cash Flow
In order to succeed, a business needs capitalization and cash flow, in short – money. What I didn’t know is that I should have been paying attention to both of these factors when I was growing up! Had I known how important it is to start saving young and how much more effective tax-free investment vehicles are, like 401(k)s or IRAs, I would have chosen a career path with better earning potential right out of college.