Advertising
Advertising

Investing Tips For Beginners

Investing Tips For Beginners

Those who don’t know anything about investing tend to fall into one of two categories: people who think it’s incredibly easy to get involved, and people who think it’s impossible to understand the first thing about investing.

Though you do have a lot to learn if you want to be successful when investing your money, it isn’t impossible to increase your net worth through the stock market. But it’s also not a get-rich-quick scheme, either. Before you dive into the stock exchange, there are a few things you should do and understand first.

Advertising

Set a purpose

Okay, so obviously your purpose for wanting to invest in the stock market is to make money. But why do you want to make more? How much are you willing to invest? How long are you willing to wait until your investment pays off? Like I said, you won’t start making money overnight, so it’s in your best interest to think long-term. Are you looking to pay off school loans or your mortgage? Are you trying to save for retirement? Or do you want to ensure you have some money saved up at the end of each year?

Once you set a goal, do some research regarding the length of time and the amount of money you’ll need to invest in order to reach that goal. Be realistic, and you’ll end up being much more successful.

Advertising

Know the risks

Investing your money in the stock market is definitely a risky venture, especially if you haven’t done the proper research. Even if you have done the research, there’s always going to be the possibility that you could lose everything due to factors beyond your control. You have to be okay with that. In other words, don’t put out more money than you can afford. Investing too much money leads you to make decisions based on emotions rather than logic, and will almost certainly lead to ruin. As long as you are comfortable with the possibility of losing the money you’ve invested, you’ll be able to make sound decisions that will benefit you in the long run.

Understand the basics

Earnings per share, return on equity, fundamental and technical analysis. If that sounds like a foreign language to you, do not put your money into the market just yet. Don’t just hire a broker and hand them your money while asking them to work their magic, either. You should have a full understanding of exactly how your money is being invested. Otherwise, you run the risk of being played by a broker with an ulterior motive. Understand the different types of investment accounts available for your goals, so you can have a good idea of how to make your money work best for you.

Advertising

Diversify

The most important piece of advice I can give you when investing your money is to never put all your eggs into one basket. Creating a diverse portfolio ensures that, even if one of your investments fails, you’ll almost certainly never lose all of your money. Diversifying your funds also allows you to set different goals for your investments. An investment in an ETF is much different than a gold IRA investment account in terms of the amount of time and money needed to be successful.

Use your own money

I previously discussed the importance of only investing money which you can afford to lose. Along with this, you should never invest money that you’ve borrowed from a bank or other service. Leveraging, or borrowing money to be invested, will ultimately destroy your profit margin once you take into consideration factors such as interest and brokerage fees. Not only that, but if you invest money that’s been loaned to you and the market crashes, you’ll still owe that money, with interest, to the entity you borrowed it from. If you want to experience true monetary gain through the stock market, use your own money, and only your own money.

Advertising

Featured photo credit: Grow Your Money / Chris Potter via farm9.staticflickr.com

More by this author

20 Little Signs You’ve Found The One 8 Signs of a Man Who Will Never Ever Stop Loving You 8 Things To Remember When Dating Someone With A Guarded Heart 14 Signs You’re Not Drinking Enough Water Which Type of Visa Do You Need to Travel Abroad?

Trending in Money

130 Fun Things You Can Do This Summer Without Spending Much 235 Real Ways to Actually Make Money Online 3How to Make Money with a Blog (According to 23 Successful Bloggers) 4This List of 50 Low-cost Hobbies Will Excite You 530 Fun Things To Do With Your Friends Without Spending Much

Read Next

Advertising
Advertising

Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

Video Summary

1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

    Advertising

    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

        Advertising

        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

            Advertising

              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

                  Advertising

                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

                      Read Next