How to start investing
Sure, you want to invest, but don’t know what to do?!!
Here are 5 ways to get you started.
1. First, determine what it is you WANT.
I’m serious. Is it to make millions? Is it to pay for your children's education? What are your short-term goals, long-term goals, etc.? Where do you want to be financially in one year, five years, or ten years? To help you with this complete the SMART goals exercise.
2. How much risk are you willing to take?
Are you willing to make sacrifices, and handle a little bit of stress with uncertain moments not knowing if your investments will flop? A good rule of thumb is not to invest more than you can afford to lose. Remember, you have to eat. Find out your risk tolerance here and proceed from there.
3. Based on your risk tolerance, what might be a suitable strategy for you to achieve your investing goals? Which investment option do you think will work best for you? Do you need to look at something with slightly increased risks in order to receive a higher return? Still don’t know? Move on. But come back to your strategy after #4.
4. Get educated. Buy some books, take an online course, or talk to someone. Get interested and find out more options and information on what you could potentially invest in to be able to achieve the life of your dreams. People - not everything has to be stocks. (check out "Invest…in what?” post)
5. Just get started. Just pick one thing and do it. Now. Today. No later than tomorrow. Once you’ve put your smart goals together, analyzed your risk, educated yourself, and selected a strategy it's time to just do it. What’s the saying? There is no better moment to start than the present. Have some faith in yourself and your dreams and just get started.