Investing your money can make you nervous. You know it is something that you should be doing but somehow you feel scared of the idea. You are not alone. Many people find investing to be confusing or risky. According to the recent survey from Ally Financial, a bank holding company located in Delaware and Detroit, 70% of Americans age 18 to 39 are aware that they need to secure their finances but have no idea where to start. 50% of the respondents said that they think that they would need to start investing but it is "not a priority for now."
The good news is, people know that investing is important. The bad news is they are scared or too intimidated, most likely uncertain to try.
Investing should not be overwhelming once you understand the basics. With these steps below, you will be able to gain clarity and knowledge in building your investment portfolio without the confusion.
1. Get Real With Your Finances
Assess your current financial situation. The truth is, before you can start investing, you need to have a certain amount of money in your bank account. If you would like to know how much exactly, it entirely depends on you. We highly recommend that you settle your licensed moneylender’s payday loan or any personal loan and build an emergency fund first before you start investing.
Make sure you identify what you are saving for. Think of your long-term investment goals. Like anything that you would like to involve yourself in, it is important that you know your end goal before you start. Investing can be very risky, so you have to prepare yourself by knowing how much you are willing to lose.
2. Do Some Research
You have to spend some time, sit down and do your research. You have to know the real definition of investing. Investing means you are purchasing something such as stocks, mutual funds, or bonds with hopes of earning money in the future. You have to know the diverse options for investing. What are the different investment opportunities out there? There are various options such as mutual funds, stocks, bonds, and real estate. You may hire a financial advisor to have the appropriate guidance before you start investing. You can also read some finance magazines to educate yourself about investing.
3. Start Investing In Stocks
While there are various investment opportunities available, get started with individual stocks. They are easy to invest in and pretty straightforward. One of the biggest misconceptions about investing in stocks, is you need a lot of money to get started. You don't. You can start with a low amount, just to test the waters. And once you get more confident in investing in stocks, you can add more money to grow your investment.
4. Invest In Mutual Funds
Mutual funds are a great option if you are a beginner in investing. There are different formats of mutual funds. Equity funds are a great way to start. In purchasing equity funds, you are investing in large stocks all at once but on a smaller scale. The financial advisors help you identify the right mix of equity funds to invest in. This type of investment involves minimal risk.
5. Exercise Patience
Once you start investing, you have to start to be patient. Investments do not grow in an instant. It takes time. And there will be fluctuations in the stock market every now and then. Keep your head up and stick to your investment. It is important to manage your expectations before you start getting into any form of investment. Just enjoy the process and keep your patience. After all, this is for your future.
Investing is one of the best and easiest ways to build your passive income streams. Especially it can be very beneficial when you approach your retirement years.
Scary as it may seem, the investment options mentioned here are not a scam. You just have to be familiar by educating yourself to make money management phenomenal.
Conclusion
Investing takes commitment and patience. Do not fall for "get-rich-quick" schemes that sell you outrageous promises. "Get-rich-quick" schemes only favor the person selling the scheme.
People who sell you these tricks only have one goal: To drain your money and resources that you should be used for investing in your future. Of course, investing is a long term commitment. When things get rough, just hold tight, and watch your investment grow. There is no such thing as easy money. Everything about investment requires hard work, determination, and patience.
Investing takes commitment and patience. Do not fall for "get-rich-quick" schemes that sell you outrageous promises. "Get-rich-quick" schemes only favor the person selling the scheme.
People who sell you these tricks only have one goal: To drain your money and resources that you should be used for investing in your future. Of course, investing is a long term commitment. When things get rough, just hold tight, and watch your investment grow. There is no such thing as easy money. Everything about investment requires hard work, determination, and patience.
