In today’s world, you’re better off working smart instead of working hard. Being smart means letting money work for you. There are two well-known sources of passive income: real estate and money markets.
Unless you have a lot of capital at your disposal, investing in real estate is not the path for you right now. That leaves you with the money/stock markets. You can invest as little as $100 in the stock market.
How to Get Started with Stock Market Investing
- Choose your Path
The first step is deciding the type of investor you want to be. You can either manage the stocks yourself or hire someone to do that for you.
If you decide to go at it alone, you’ll have to read books and articles to familiarize yourself with the subject. You may also have to take free online courses on the same. Find a mentor to guide you as you do the investing.
If you hire someone, there are two options. You can either hire a professional investor or a robo-advisor. Most brokerage firms will give you both options. A robo-advisor is more affordable because they use artificial intelligence to study the market and make investment decisions. The human advisor will charge you more because you have to compensate them for the time and experience.
- Open an Investment Account
The second step is opening an account with the brokerage firm.