Stock A may provide better returns over time, but if it’s also prone to wild swings, you’ll need to have patience and discipline so that you won’t be tempted to sell the stock prematurely. So, shop around and compare the different brokerages based on the tools they have available and what sort of fees and commissions they charge.īuilding Wealth Determine Your Risk Tolerance What’s more, some apps, like Robinhood, allow you to buy stocks without paying any sort of commission. There are dozens of options these days, including many online brokerages that charge very low fees. To purchase stocks, you’ll need to set yourself up with a broker. If your only remedy is to sell your stock investments, you might end up taking a loss right before the stock makes a big gain, depending on the timing of the stock markets and your emergency.Ī general rule of thumb: You should have six months’ income stashed away in an emergency fund so that you can respond to short-term financial needs without having to sell off your stocks. Build an Emergency FundĪnything from having a car break down to losing your job can leave you in unexpectedly dire financial straits. It’s just a better investment in the end. Before you consider investing, make sure you’ve paid down any and all high-interest debt. Building Wealth Pay Off High-Interest DebtĪs good as returns from the stock market can be, they’re never going to top the interest rates of your credit cards over the long run.
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