Here are Safer Alternatives if You’re Too Obsessed with the Stock Market
We’re big on investing. It’s an important way to grow your money and set yourself up for retirement someday.
But is it dangerous to be too obsessed with the stock market?
You bet it is. Our financial advice columnist, Dear Penny, recently heard from a reader whose husband stopped funding his 401(k) so he can bet on the stock market, instead.
Is it OK that he’s stopped contributing to his 401(k) so he can trade stocks? the reader asked. How do I ask him what he’s actually investing in? I’m worried that he’s gambling money that we need for our retirement.
That’s not the way to go. Here are five safer ways to invest and grow your money.
1. Just Steadily Invest Like a Normal Person
Instead of betting all your money on the stock market, just steadily invest in it. Take the long view. The stock market is unpredictable, which means that sometimes stock prices go up, and sometimes they go down — but over time, they tend to go up.
If you haven’t started investing and have some money to spare, you can start small. Investing doesn’t require you throwing thousands of dollars at full shares of stocks. In fact, you can get started with as little as $1.*
We like Stash, because it lets you choose from hundreds of stocks and funds to build your own investment portfolio. But it makes it simple by breaking them down into categories based on your personal goals. Want to invest conservatively right now? Totally get it! Want to dip in with moderate or aggressive risk? Do what you feel.
Plus, with Stash, you’re able to invest in fractions of shares, which means you can invest in funds you wouldn’t normally be able to afford.
If you sign up now (it takes two minutes), Stash will give you $5 after you add $5 to your invest account. Subscription plans start at $1 a month.**
2. Grow Your Money Faster — Without Risking Any of It
Save some of your money in a safer place than the stock market — but where you’ll still earn money on it.
Here’s the deal: If you’re not using Aspiration’s debit card, you’re missing out on extra cash. And who doesn’t want extra cash right now?
Yep. When you sign up for a debit card called Aspiration, you could get up to 5% back when you swipe at certain stores — plus they give you up to 50 times the normal national interest rate on your savings balance.
It’s perfect for earning extra cash for things that are already on your shopping list. You were going to buy these things anyway — why not get this extra money in the process?
This card used to have a huge waiting list, but now you can sign up for free.
Just enter your email address here and link your bank account to see how much extra cash you can get with your free Aspiration account. And don’t worry. Your money is FDIC insured and under a military-grade encryption. That’s nerd talk for “this is totally safe.”
3. Ask This Website to Help Pay Your Credit Card Bill This Month
No, like… the whole bill. All of it.
While you’re stressing out over your debt, your credit card company is getting rich off those insane interest rates. But a website called Fiona could help you pay off that bill as soon as tomorrow.
Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.
If your credit score is at least 620, Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 2.49% and terms from 6 to 144 months.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.
4. See if You Can Knock Up To $500/Year* Off Your Car Insurance in 2 Minutes
When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.
If it’s been more than six months since your last car insurance quote, you should look again.
And if you look through a website called Pretected, you could save yourself up to $500 a year.
It takes just two minutes to answer some questions, and Pretected’s smart matching technology will show you the insurance companies that are the best fit for you. And don’t worry — Pretected uses advanced data security and encryption technology, so all your details are safe.
The website is free to use and can even save you up to an additional 20% if you add another vehicle to your policy. That’s a decent chunk of money to put back in your pocket!
Millions of Americans have already used Pretected’s smart matching technology to find affordable car insurance. See how much money you could save with a new policy.
*average expenditure $88/mo
5. Add $225 to Your Wallet Just for Watching the News
Here’s a safe way to earn a little cash on the side.
We’re living in historic times, and we’re all constantly refreshing for the latest news updates. You probably know more than one news-junkie who fancies themselves an expert in respiratory illness or a political mastermind.
And research companies want to pay you to keep watching. You could add up to $225 a month to your pocket by signing up for a free account with InboxDollars. They’ll present you with short news clips to choose from every day, then ask you a few questions about them.
You just have to answer honestly, and InboxDollars will continue to pay you every month. This might sound too good to be true, but it’s already paid its users more than $56 million.
It takes about one minute to sign up, and start getting paid to watch the news.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He tries not to be obsessed with the stock market.
*For Securities priced over $1,000, purchase of fractional shares starts at $0.05.
**You’ll also bear the standard fees and expenses reflected in the pricing of the ETFs in your account, plus fees for various ancillary services charged by Stash and the custodian.
The Aspiration Spend & Save Accounts are cash management accounts offered through Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a bank.