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Warning: These 4 Steps Will Make You a Confident Investor

Warning: These 4 Steps Will Make You a Confident Investor

It’s a whole new investing ball game folks.

Even just a few years ago, your odds of being able to start investing with as little as $100 were as good as a pig not rolling in mud after a storm.

Sure, people have been writing about investing with $100 for years.

But the knowledge needed to pull it off properly was crazy. And the emotional and practical obstacles to getting started were scary.

Not anymore.

If you’ve always wanted to hit the start (or restart) button on investing, here’s how you can do it with $100.

Is This You?

Let’s be honest.

Most folks believe the investing myths that abound everywhere you turn. I’m talking myths like:

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  1. Getting started with investing isn’t necessary if you eventually make enough money
  2. Investing with small amounts has no benefits
  3. You need thousands of dollars (or more) before the investment company gatekeepers will let you in
  4. People who don’t know a stock from a bond or how “The Market” works should stay away
  5. You should pay off all your debt – regardless of the terms and interest rate – before investing
  6. The best returns for a solopreneur or small business owner are always reinvesting in your business

There could actually be some truth to these myths in certain scenarios. I should know since I worked in the investment industry for a decade. But people who these myths apply to probably don’t look and act like you and me.

Every day, a new barrier to investing with small amounts is being invisibly broken down. So, if you’re determined to have your purchasing power grow faster than taxes and inflation constantly devour it, you should be investing now.

Know the Breakdown

Many people get stuck with investing because they feel they need to know the perfect investment before starting.

Here’s a secret everyone should know:

There is no such thing as a “perfect” investment. There are only suitable or appropriate investments, some of which you might already know about.

You could get tips from Warren Buffett all day long or even incredible education in less than two pages, but the fundamental process can be the same for everyone.

Here’s the breakdown to get you moving, educated, and joining a new generation of confident investors.

1. Answer Some Initial Considerations

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You don’t need to know every investing definition, process, and principle before starting.

But you do need to know your investing goals up front. Beyond ensuring your purchasing power is keeping up with the hidden bite of taxes and inflation, do you need money to pay for higher education, retirement, a future wedding, a new car, or that vacation you richly deserve? Answering this question will determine the account structure you need to pursue these big goals.

You should also consider how much to invest initially and periodically, especially if you have debt or are self-employed. Do this based on more than just financial analysis though. The health, emotional, and mental angles are essential too.

2. Choose an Investment Account Type

You could open a limited partnership, futures, or foreign currency account (among others). However, the newly empowered investor probably will find them too complex, too expensive, and too risky.

Instead, base your selection on the answer to this core question:

Do you want to invest with a focus on retirement, higher education, or something else?

If retirement, pick among retirement options like an Individual Retirement Account (U.S.), Tax-Free Savings Account (Canada), or Individual Savings Account (U.K.). If higher education, choose among options like a 529 College Savings Plan (U.S.), Registered Education Savings Plan (Canada), or Junior Individual Savings Account (U.K.). If retirement or higher education doesn’t suit your needs, the plain vanilla account is a great option.

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3. Select an Appropriate Investment

Remember there are no perfect investments for you, only suitable or appropriate ones. And among all the investment types under the sun, picking one between stocks, fixed-income (i.e. bonds), mutual funds or Exchange Traded FundsReal Estate Investment Trusts (REIT), and commodities will generally be appropriate for most people.

Just make sure you first understand core investing principles like risk tolerancediversificationliquidityrate of return, and keeping costs low before making a choice.

Filters and screening tools can be your best friend here, so use them liberally.

4. Picking an Investment Company

It starts getting easier now because your choices of account structure and investment type aren’t offered by all investment companies.

Separate from each investment company’s online functionality, support methods, and pricing model, the core decision point will be how little money the company requires to open an account and invest in specific securities.

Consider signing up for automated periodic investments to further decrease the minimum balance amounts required if otherwise too high. Just about every country has investment companies with no minimum balance amounts for certain investments or minimum amounts as low as $100.

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Tools at The Motley FoolFindTheBestFinancial Highway (Canada), and Money.co.uk (U.K.) can be really helpful.

Boom! You’re Investing

After the account is opened and you’ve placed your first trade, you’re rocking and rolling as an investor. Your investment balance might be small-time, but you should feel big-time confidence that your money can now grow to pay for your future needs.

Plus, it feels awesome to fight back against the ever-present grip of taxes and inflation.

When you act on these steps, your mind and spirit will thank you for liberating your time, money, and talent. Your pocketbook and bank account will thank you too.

So what’s it going to be folks? Commit to getting started (or restarted) with investing and let us know when it’s happening in the comments!

Featured photo credit:  time is money via Shutterstock

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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!

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    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.

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        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

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              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.

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                  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!

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