Making Sense Of Cents

Learn how to make extra money, how to save money, how to start a blog, and more.

JOIN OVER 300,000
MONTHLY READERS!
  • HOME
  • BLOG
  • Make Money
    • best online jobs
    • passive income ideas
    • paid online surveys
    • How To Make $100 A Day
    • 80 side job ideas
    • More Extra Income Ideas
  • SAVE MONEY
    • Free Amazon Gift Cards
    • 16 Alternatives To Cable TV
    • best rewards credit cards
    • How I Paid Off My $40,000 Student Loans
    • More Money Tips
  • Categories
    • Income Reports
    • How To Save Money
    • Extra Income Ideas
    • Blogging Tips
    • Career Advice
    • College
    • Pay Off Debt
    • Retirement
    • Self-Employment Tips
    • Travel
  • BLOG COURSES
    • AFFILIATE MARKETING COURSE
    • MAKING SENSE OF SPONSORED POSTS
    • HOW TO START A BLOG
  • Contact
    • About
    • Contact
    • Advertise
    • Recommendations

Why it makes sense to invest with friends

Last Updated: October 16, 2018 BY Michelle Schroeder-Gardner - 1 Comment

Disclosure: This post may contain affiliate links, meaning I get a commission if you decide to make a purchase through my links, at no cost to you. Please read my disclosure for more info.

0 shares
  • Facebook
  • Twitter
  • Reddit
  • LinkedIn
  • Email

This is a collaborative post in partnership with Voleo.

With over-the-top movies like The Wolf of Wall Street and the Big Short, it’s easy to see why many people are intimidated by investing. What most people don’t realize is that you don’t have to work in finance to be a great investor. By keeping up with industry news and doing a bit of research, stock investing can be an exciting and rewarding side hustle. If you’re thinking about trading stocks, forming an investment club with friends could be a perfect way to get your financial future off to a flying start. Here’s our take on why it makes to invest with friends.

Fast Track Your Learning

While you don’t need to be a rocket scientist to understand investing, it does take some time to learn the ins and outs of stock markets and stock selection. This is where the combined resources of a group can be incredibly useful. Individuals who share the time-consuming legwork of researching potential investments can be of great value to the group as a whole. The vast amount of information gathered and the different perspectives and insights shared within the group are bound to provide a faster learning process than doing it alone.

Support Investment Decisions With A Broader Scope Of Research

While  group investing is not a new concept, some companies are creating innovative ways to make the collaboration process easier and more efficient through investment club apps. It takes some searching to find the best investment app that works for you. Voleo allows users to research companies, stocks and ETFs, and to share any insight they gain with their peers. This type of social investing works in a similar way to a regular social network: it offers the ability to share information, but it’s focused solely on stock trading research for the investment club. In a world where we have access to more information than ever before, power in numbers can be very useful in getting timely and relevant content and research to add context to, and support, investment decision-making.

Reduce Your Investment Risk

One of the most significant benefits of participating in an investment club, whether you are new to investing or experienced, is that you are exposed to a larger amount of stock at lower personal risk. Having more money at your disposal to invest as a group means you get access to a wider range of shares, which diversifies your portfolio and lowers risk. Additionally, investments based on a broader understanding of the markets and guided by multiple perspectives lead to more rational and better informed decision-making, which also reduces investment risks. And because of the community nature of the investment club, you are also less likely to make rash decisions.

Do More With Less

There are many investment options that are just too costly for smaller investors. Individuals may find it hard to invest in large and profitable companies as single shares may cost thousands of dollars, effectively cutting out the small players. When individuals band together and pool their money, the cumulative capital opens up bigger, more profitable opportunities that wouldn’t be available to a single investor. Another advantage of investing with bigger numbers is lower transaction fees. At the end of the day, having a small slice of multiple investments, rather than individually pinning your hopes on the one or two investments you could afford on our own, puts you in a better position to benefit financially from your investment.

Gain The Knowledge Needed Before Starting An Individual Portfolio

The investing world is mysterious and daunting to many people, especially novice investors who are often hesitant to get involved for fear of losing their savings. An investment club can be an enjoyable, sociable and relatively inexpensive way to expand your financial literacy and learn how to invest successfully. When you join an investment club and start interacting with other investors, you gain access to sources of market information that can help you make better informed decisions about stock purchases when you do start to invest your own funds in a private portfolio.

Investing For A Good Cause

There are many types of investment clubs and each is formed with a specific goal or vision in mind. Some only deal with real estate or stock markets while others employ investment strategies such as swing trading. Investment clubs offer a platform for like-minded people to work together towards a unified mission, which is why it is such a great platform for individuals interested in social investing. Social Investing, also referred to as “mission investing” in the philanthropic world, means placing assets into companies that provide a societal or mission-related benefit in addition to a financial return. This “double bottom line” approach delivers positive results for people and additional funds to channel back into doing good.

Save Time By Collaborating

Time is money – it’s a valuable asset that few people seem to have enough of. By investing with friends, you can save time by assigning roles to each member. One, for example, can keep track of the money, others can research stocks, while tax and admin can be left to another member. By assigning specialized roles to individuals you can work synergistically together and streamline your efficiency to get more done in less time – a better alternative to doing all of these tasks yourself.

Conclusion

At the end of the day, there are many ways to invest. While there are pros and cons to an investment club it is a great vehicle for beginner investors to get a foot in the door, learn and grow as a team while having fun with like-minded people you trust. If you are looking for the best investment app to take advantage of the power of many and unlock your potential to achieve your wealth goals sooner, give the Voleo app a try.

By starting an investment club on the Voleo App, which is available for Android and iOS, you can get together with family, friends or colleagues to pool your money and share ideas, expand your financial literacy and make investing an enjoyable and rewarding experience.

Related Posts

  • Pros And Cons Of Tiny Houses (Is It Right For You?)Pros And Cons Of Tiny Houses (Is It Right For You?)
  • Your 2023 Financial To-Do List (15 Things To Check Off)Your 2023 Financial To-Do List (15 Things To Check Off)
  • 10 Budget Friendly Meals (Easy, Delicious, & Affordable Recipes!)10 Budget Friendly Meals (Easy, Delicious, & Affordable Recipes!)
  • 20 Best Money Saving Apps (I’ve Used Many Of These Apps!)20 Best Money Saving Apps (I’ve Used Many Of These Apps!)
  • 70+ Goal Ideas For 2023: Make This New Year The Best Yet70+ Goal Ideas For 2023: Make This New Year The Best Yet
  • Bask Bank Review: Earn Airline Miles For Saving MoneyBask Bank Review: Earn Airline Miles For Saving Money
0 shares
  • Facebook
  • Twitter
  • Reddit
  • LinkedIn
  • Email

1 Comment
Filed Under: Writers1 Tagged With: Budget

About Michelle Schroeder-Gardner

Michelle is the founder of Making Sense of Cents, a blog about personal finance and traveling. She discusses how her business has evolved in her side income series. She paid off $40,000 in student loans by the age of 24 mainly due to her freelancing side hustles. Click here to learn more about starting a blog!

Comments

  1. DNN says

    July 18, 2019 at 5:37 pm

    My best investment is believing I can succeed in entrepreneurship and building great relationships with good people like Michelle and others. 🙂

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Making Sense of Cents welcome page photo
Hello and welcome!
My name is Michelle and I'm the author/owner of Making Sense of Cents. Learning how to save money and make more money changed my life. It allowed me to pay off $40,000 in student loans, start my own business, and I now travel full-time.

As Seen On

as seen on
How To Start A Blog
making sense of affiliate marketing for bloggers
My Monthly Online Income Reports
My Student Loans Are Gone - How I Paid Off $38,000 In Student Loans
How To Prevent Financial Fraud From Happening To You
Buying a House at 20 (How I did it)
How To Make Money Blogging Picture
How To Save 50% Or More Of Your Income Picture
How I Graduated From College In 2.5 Years With 2 Degrees AND Saved $37,500
75+ Ways To Make Extra Money

 

HOME
ABOUT
CONTACT
FREE FB GROUP

PRIVACY POLICY
TERMS OF USE
DISCLAIMER / EARNINGS DISCLAIMER
Copyright © 2011 - 2023. All Rights Reserved.

© 2023 Making Sense of Cents
Design by Swoon & Co. Creative