Investing Extra Income: How Clinicians can Invest in Their Futures Today
As healthcare workers, many of us have increased our working hours because of the pandemic. With another stimulus payment potentially on the horizon, be mindful of where your extra income goes. Investing extra income can be vital in producing long-term wealth.
Mobile investment apps have made it easier than ever to invest even small amounts of money, all from your smartphone. Arming yourself with the right information is essential in choosing an investment app that fits your lifestyle and comfort level.
With the market expected to rally in 2021, now is the perfect time to begin your investment portfolio.
Overview of Fintech
Fintech is the technology used to provide financial services for large corporations to individual consumers, including cryptocurrency and mobile payment applications. Companies that use the internet, mobile devices, and software programs to facilitate financial transactions participate in the Fintech industry.
The Fintech industry also includes a variety of investing apps that help you manage and invest money. These apps are generally easy to use and take away some of the challenges of investing as a beginner.
If you’re new to investing and have little time to learn the ropes, consider investing extra income through a finance app.
Why You Should Be Investing Extra Income
You work hard for every dollar you earn and perhaps rely on most of your paycheck for bills and daily expenses. To part with a few hundred or even a thousand dollars to get your investment account started may seem impossible.
Mobile investing services have low costs, with some even having no minimums to get started. You can now invest small amounts of money anytime, with low trading fees (often free). There’s no better time to capitalize on what experts expect to be a surging market this year.
After a long shift or a particularly stressful day on the floor, looking over your investments shouldn’t be a headache. By utilizing the options available and putting your portfolio in your pocket, you can seamlessly manage your assets quickly and stress-free.
Which App is Best for Me?
Consider sticking with a well-known and proven investment app. When choosing an investment platform, one thing to keep in mind is whether it’s insured by the Securities Investor Protection Corporation (SIPC). In the same way bank accounts are insured by the FDIC, money left in investment accounts should also be insured. If you don’t see evidence of this insurance on a specific app, steer clear of it.
M1 Finance uses a “pie investing” strategy, which allows you to pick a mix of stock and ETFs. This makes it possible for you to choose a plan that works for your goals, whether that be long-term investing or something different. Their “Robo” advisors can help select stocks that fit your preferences, allowing for a quick and straightforward experience.
Apps like Acorns and Stash allow you to get your investment account started with only a few cents. By simply linking your debit or credit card account, either app will round your purchases up to the nearest dollar and invest the change. You can set the general areas where you’d like to invest your change, and just like that, it’s invested! This is a simple option that can be great if you’re pressed for time.
If you’re looking to get a bit more involved in your investing and are seeking more control over where your money is going, consider apps like:
- Robinhood (although its reputation is receiving criticism at the time of writing this)
- Ally Invest
- ZacksTrade
- Sofi
These are well-established options in the mobile investing world, and each boasts little to no fees. In fact, ZacksTrade is the most “expensive” of the above when it comes to fees-per-trade, with a single trade costing you only one cent!
The other platforms we mentioned offer a wide variety of perks, including no account minimums, small initial deposit requirements, and a plethora of literature and resources to help guide both new and seasoned investors.
There are many options to choose from when picking an investment platform, so research wisely with your goals in mind. Your unique circumstances will play a large role in making the best investment decision for your future.
Parting Advice for Investing Extra Income
Investments of any kind carry an inherent risk. There are no guarantees that your investment will prove successful or that you won’t lose any money. Arming yourself with as much knowledge as you can is critical before choosing stocks to invest in on your own. It’s okay to opt for services that use “robo-advisors” like M1 Financial and Acorns to avoid having to make these decisions by yourself.
No matter what method you choose to invest, always only invest what you are comfortable with and never sacrifice your mental health over your portfolio. Set your investment strategy, select your services, and enjoy peace of mind from knowing you are investing for your long-term financial future.
