Many don’t know where to start investing. Others don’t realize that investing is not as scary as it sounds. We know, we know, you’re probably even tired of hearing from rich peeps who go on and on about how investing is “the best thing to do for your finances.” So, here are 6 tips for you to start investing if you don’t know how to.
If not “now”, when?
The biggest barrier to investing money as a beginner is getting started. Don’t wait, there is no such thing as a perfect time to get in. You need to start now and keep adding to it. Yes, investing has uncertainties and a whole lot of risks. Come to terms with the fact that your investment will lose money, even if it does, it’s not your fault! But just as there are days of loss, there will be days of gain as well. You just keep at it!
Set goals to score them
Why are you investing? If you can answer that question, then the first step to your investment strategy is set. Put a plan in place, have a blueprint of your short, medium and long-term goals, give them each a time frame. For example, a short-term goal could be a vacation to Paris next year, while a medium-term goal might be a down payment on a house in three to five years. This will help you understand and plan on how to invest with a time frame attached to each goal.
Be fearless in your pursuit of investment
Don’t let the media scare you, they don’t look at investing the way you do. The media’s goal is to bump up views and the sensational headline is their strategy to get there. But you, on the other hand, your goal is to grow your money over time (yes, over time). So don’t freak out if you see headlines declaring the next “Stock Market Armageddon.” Keep a level head and see how you can make decisions that will work in your favor.
How much risk can you tolerate?
Don’t bite off more than you can chew. Take as much investment risk as your investment goal requires and your stomach can bear it. Don’t take on more risks with your investments just because you think you can afford it, even if you can afford it doesn’t mean you should.
Need help? Just ask
You know where you stand in terms of your knowledge about investments. Our best advice for beginners is, if you’re not an expert, ask for help! Talk to a financial advisor, they will help you navigate any uncertainty you have. Come on, you can do it! Advisors are not only for the wealthy.
Automate your investments
When you’ve set up investments, ensure to automate as much of your investing process as you can. Set up automatic savings deposits and other contributions that go to your retirement account. You can even automate monthly investments. The lesser work you have to put in, the lesser overwhelming it will be!
