Advertising
Advertising

10 Investment Tips For Beginners

10 Investment Tips For Beginners

If you are thinking about getting into investment, you are likely unsure of how to start and what you should be investing in. The world of investment can be very intimidating for the first-timer. In fact, it can often be confusing for those who are experienced. The following are 10 tips that will help you get started in the world of investment.

1. Set Investment Goals

Now it is time to decide what you want to get out of investing. Obviously, your ultimate goal is to make money, but everyone’s needs are different. Things to consider include income, capital appreciation, and safety of capital. Also, consider your age, your personal circumstances, and your financial position.

Advertising

2. Invest Early

The earlier you start investing, the better. For one thing, the sooner you start, the less money you will need every year to achieve your investing goals. Your earnings will compound over time, so don’t be afraid to start investing, even if you are a college student- or better yet, in your last year of high school.

3. Make Investments Automatic

Set aside a certain amount of money to be automatically invested each month. You can set up automatic investment plans through various brokerage service firms and automated investment services like Wealthfront. By doing this, you will avoid stalling and consistently invest.

Advertising

4. Look at Your Finances

Before you can begin investing, you need to look at how much money you have to invest. Be realistic about it. Make sure that you leave yourself with enough money to pay for your regular monthly bills, loan payments, etc. You don’t need a lot of money to get started with investing- but there are risks. You don’t want to leave yourself short of paying other important bills.

5. Learn About Investing

Once you have your finances in order, it is time to start learning about investing. Study basic terminology, so you know how to make coherent decisions. Learn about stocks, bonds, mutual funds and certificates of deposits (CD’s). Don’t forget about other details that include diversification, portfolio optimization and market efficiency.

Advertising

6. Set Up Retirement Accounts

There are many tax advantages to having retirement accounts. In some cases, initial investments are tax-deductible, such as IRA’s and 401 K’s. Others require you to pay taxes up front, but not when you withdraw funds during retirement; these include Roth IRA’s (Individual Retirement Arrangement). Also, make sure to find out if your employer matches personal retirement contributions.

7. Be Wary of Commissions

Professionals will try to talk you into buying investments that give them high commissions. Don’t do this without some serious research. Some so-called professionals are well known for selling products that pay them big commissions, but don’t pay much to their buyers.

Advertising

8. Diversify Your Investments

The market fluctuates constantly, and things always go up and down. To avoid losing too much money when stocks go down, make sure you have a diversified portfolio. That way, you will have some stocks that are rising, even when others are falling. Another option is to invest in overseas markets since they are notably different from the ones in the United States.

9. Study Your Portfolio

It is important that you always study your portfolio. What is right for your portfolio today, may not be the best for it tomorrow. It is important to know what you have, and where you might need to make changes in the future. When the economic climate shifts, be prepared to make investment changes as well.

10. Keep Informed

It is a good idea to always study the markets. Read up on the things you have invested in, and look for resources that keep up with market trends, as well as the global economy.

Featured photo credit: Anthony DELANOIX via unsplash.com

More by this author

Jane Hurst

Writer, editor

Stay Productive On The Go – The Top 20 Tools For Digital Nomads 10 Great Books to Help You Find the Meaning of Life 30 Makeup Hacks That Will Change Every Girl’s Life 15 Best Brainstorming And Mind-Mapping Tech Tools For Every Creative Mind The Best 8 Project Management Apps

Trending in Career Advice

1 Clueless On Your Career? Sabbatical vs. Career Break 2 9 Tips for Starting a New Job and Succeeding in Your Career 3 10 Essential Career Change Questions To Ask Yourself This Year 4 10 Job Search Tools Every Jobseekers Need To Know About 5 If You Have This Key Behavior, You’ll Be More Successful Than 90% Of People

Read Next

Advertising
Advertising
Advertising

Published on September 8, 2019

The Lifehack Show Episode 7: Following Your Calling

The Lifehack Show Episode 7: Following Your Calling

In this episode, Joseph Wilner, licensed clinical psychotherapist and certified life-coach, talks about finding and fulfilling your calling in life. Joseph blends his passion of music, and following his dreams of being a drummer, with his expertise in psychology to help people live a more intentional and meaningful life.

Joseph believes everyone has a calling, or several callings, where their passions and strengths can merge to create a successful life of contribution and significance.

 

    Joseph Wilner

    Episode 7: Following Your Calling

    Also available on Apple Podcasts and YouTube.

    Featured photo credit: Vlad Bagacian via unsplash.com

    Read Next