My advice to anyone who is interested in investing is to learn the ropes before putting your hard earned money at risk. Paper trading, a simulation trading, is a tool anyone can use to perfect their personalized investing strategy. There are multiple brokers and phone apps that allow you to trade with hypothetical money. Investopia also provides a free stock simulator. Do your research and perfect your strategy with these options.
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I view getting cashback as free money to invest with. Ibotta is a simple app where they give you cashback on all sorts of purchases. First you find and add offers on the app. You then make your purchases and redeem those offers by sending a picture of your receipts through the app. Ibotta then deposits cash for those purchases within your ibotta account. Ibotta always updates their offers and supported retailer so you’re bound to find offers on products you regularly purchase. They also have “any items” and “any brands” offers so there’s no reason why you shouldn’t take advantage of the free money ibotta is offering up. Don’t forget to make these purchases with a credit card that provides a good cashback program to increase the overall return!
Time is money and you’re leaving profit on the table while you learn the market. “Robo-advisor” investment services are a great option if you have available cash sitting around. The automated investment services trades exchange-traded funds (ETFs), similar to many 401K plans, while you’re learning the market.
Wealthfront is my go-to “robo-advisor.” The phone application has many different options to explore. Upon opening an account, a series of questions will develop a strategy that they believe best fits your needs. You’re also able to change the strategy by altering your “risk level” settings. The app calculates your projected net worth and assists in creating a plans for your future financial goals too. I have connected all of my checking, saving, brokerage and retirement accounts to Wealthfront to make it an easy one-stop shop on tracking my current net worth. Moving money in and out of the Wealthfront account is an easy process. Therefore, you’re able to move money from your Wealthfront brokerage account to the brokerage account you will be trading with, in time to take advantage of those “good buy” stock opportunities. It sounds too good to be true, but I haven’t ran into any issues whatsoever.
On a side note, with the current volatility of the market, Wealthfront also provides a cash account with a high APY (currently 2.29% APY).