Why invest?

People usually has misconceptions about investing in stocks. Most of us rather put our hard earned savings into our bank accounts and let it grow through the bank's interest rates. That is when we already knew that those interest rates can hardly get us anywhere ranging from 5-10 years later with a few thousands in bank. A fixed deposit, yields you a maximum of 1.5% guaranteed returns on a good year and can be as low as 0.45% in a normal year. That means for every $1000 you leave in the bank for a year. you only get $4.50 in return.

In contrary, being able to identify a stock that pays good dividends every quarter will prolly get you around 10% return per year! That is $100 for every $1000 you invest. There are some stocks that pays up to 30%! and it all depends on your own observation and the economy. However, you will also be exposed to the up and down valuation of the stock price, but nonetheless if you are able to pick a stock with good fundamentals and at a bargain rate. Your $1000 may turn into $2000 within a year!