Investing is a good thing. Even in times like these, you should be investing with an eye on the future. It’s simply a smart money move. However, there are reasons to be wary of investing apps. They may make long term investing seem quite boring and short term trading quite fun.
As CNBC notes, one such investing app that has caught the eye of financial experts and the public is Robinhood. The app allows almost anyone to start investing. In fact, the company claims that almost half of its users had never invested before using the app. The issue with apps like Robinhood is that they make investing seem like a game. There are notifications about individual stock performance. There’s confetti when a trade is made. Though the app doesn’t make users trade stocks, it seems to encourage it by making it entertaining.
As we’ve said time and time again, investing is a long game. Even the most seasoned wall street experts can’t build real wealth by trying to beat the market day in and day out. If you’re constantly making trades, nothing has time to grow.
While apps like Robinhood are great for getting people to try the market, it’s important to recognize that the future should always be in mind when investing. This is especially true if you’re young. Find your financial footing first. Pay down debt, stock up your emergency funds and start to max out your 401(k). Then, if you want, try an app that might encourage a bit of investing risk.