Remember that class on finance in high school that everyone had to take? It went over investing and how to save for retirement? Yeah me neither…
Investing can be intimidating, especially for those of us who were never taught how important it is (me ??). There are so many different stocks and ETFs to choose from and how can you be sure that you are making the right decision? You also don’t want to risk losing your hard-earned dollars on a shaky pick. These factors can demoralize a beginner and a first-time investor might give up before even starting. We are here to tell you why you should fall for investing!
Fall for Investing – Invest in what you ❤
Stockpile makes it easy to invest in the companies that you love and have a relationship with. If you are a beauty buff and part of your salary goes towards buying the hottest lip kit or contouring palette, you can buy Sephora or Ulta stock. If every Saturday you head to Costco to buy in bulk (and get those free food samples) you can buy fractional shares of Costco stock. It is a unique and special part of Stockpile to be able to invest in the companies you care about, because in a way you are investing in yourself.
I also trick myself into thinking I’m shopping by “shopping for stock” on my Stockpile account. I add a stock to my Wish List and after my deposit comes in for the month, I go stock shopping instead of shoe shopping. It makes me feel like I’m splurging and indulging, but really I am spending money on my future.
The power of compounding
Albert Einstein called compound interest “the greatest mathematical discovery of all time.” Once you start to see the magic of compounding, you will start to fall for investing even more. Despite spending my whole career in finance and being Series 7 licensed, I was extremely slow in getting my financial life together. The magic of compounding was never explained to me by my parents, so it took me awhile to think I could afford to own my piece of the stock market. Compounding magic has taken hold, and I will never look back!
Let me break it down for you like this: An investment of $10,000 in Apple made in 1980 would have grown to almost $3 million by 2017. This translates to an annual return of 16.75%, including the reinvestment of all dividends from the stock. Apple is one of the most successful companies from the last 20 years, but even if you start with a little bit at a time, compounding will take hold.
And the earlier you get started, the more time you have for your investments to grow. We recently launched our auto-deposit feature which turns investing on auto-pilot. (Learn how to set it up here.) Now is the perfect time to start falling for investing at Stockpile!