You know you want to invest, but you don’t know where to start. There are so many questions, requirements, and things you must know that it can get overwhelming, to say the least.
What most people don’t realize is that it’s easier than ever to start investing today. With these 10 tips, you can start investing without the overwhelm or wondering where to start.
It’s easier to stay motivated to invest when you have a goal. Investing just to invest isn’t as motivating or fun. When you have a goal, such as saving for a down payment on a home, you’ll see your progress and how close you are to achieving your financial milestone.
Start investing now. Don’t wait for the ‘perfect time’ or to have the ‘perfect’ amount of money. Even if you only have a few dollars or don’t think you’re ready, every little bit counts.
Don’t invest your money until you have an emergency fund – something to carry you through should you lose your job or fall ill. Save at least 3 to 6 months of expenses and then invest. You’ll have less to lose and more motivation to take chances.
Don’t expect huge returns overnight or even in a year. Choose investments you can leave your money in for as long as 10 years for the best returns.
It’s easy to helicopter over your investments to make sure you aren’t losing money but don’t. The market naturally ebbs and flows – you’ll have good days and bad days. Let it work itself out. If you watch it too often, you’ll make emotional decisions that result in a loss.
Don’t wait until a stock is taking off to buy it. Instead, buy at ground level and enjoy the ride along with the stock. If you buy low and sell high, you’ll have capital gains. If you buy high and hope it gets higher, your chances aren’t as good.
Don’t put all your eggs in one basket. Offset risky investments (stocks) with less risky investments (bonds). If you don’t understand stocks or don’t want to take the risk, try ETFs for diversified investments.
As humans, we put ourselves last. Don’t let contributing to your investments slip by month after month. Set up automatic investments in an amount you’re comfortable with and you never have to worry about forgetting to invest again.
If you think you don’t have any money to invest, try micro-investing, aka investing spare change. Even little bits of money add up to big things over time. Don’t think you can’t invest unless you have thousands of dollars to contribute.
Even skilled investors continually learn about investing from books, videos, and podcasts. Try new things, follow new investors, and learn how you can make the most out of your money.
Don’t think you’re at a disadvantage because you’ve never invested. There’s no time like the present to start even if it means investing a few dollars. Everyone has to start somewhere and today’s the best day to try.