Whether you have a lot of money to spare or just a little bit, you probably want to see it grow. If your debt is paid off or at least under control, your savings account is steadily growing and your budget is in good standing, it’s time to invest your money and make it multiply. At first, investing can be overwhelming, but there’s a ton of advice out there for beginner investors.
1. Don’t wait! Start now.
You’re never too young to start investing. The longer you invest your money, the more you’ll make. Even $25 a month is worth it. When you start investing at an early age, compounding rates of return practically guarantee that you’ll end up with more money than a person who starts later in life.
2. Get inspired by the pros.
If you want to copy a person’s success, Reuters says you need to figure out how they got where they are. For example, Brad Reifler didn’t wake up one day and find out he was successful. Instead, he worked hard as an entrepreneur and made his own fate. Read success stories or find a mentor to help guide you.
3. Invest in the familiar.
When you start buying stock for the first time, pick things you’re familiar with. Do you head to Starbucks every morning? Do you vacation in Disney World ever year? Put your money into your interests. This isn’t an ideal long-term strategy, but it is a great way to get started. Take a look at the products you own and the stores you frequent to help guide you when it comes to choosing stocks.
4. Diversify via mutual funds.
If you don’t have enough money to create a diversified portfolio yourself, putting your money into a mutual fund is a good option. Think of it as a collection of investments. You can put as much money as you want into the collection and then the mutual fund manager decides where to invest it.
5. Try to go it alone!
If you’ve been keeping up with the stock market and you’ve read your share of information about investments, you may want to try a DIY approach. Ask your bank if they have a discount broker. You’ll be able to open an account and trade on your own. Just keep in mind that when you use a discount broker, there’s nobody to tell you what or when to buy or sell. On the plus side, though, you put all of your trust in yourself and you don’t have to rely on another person’s advice.