15 Tips to Start Your Investing Journey in 2019

Whilst some investments can be risky, there are safer, less risky options and following are a few tips to steer you in the right direction and start you on your investing journey.

* Don’t forget to always do your home-work before putting your money into any investment.

1. Get started. 

The best way to get ahead with investing is just to start. You can’t accumulate funds if you don’t set any aside. The longer you wait to start investing for your retirement or your livelihood, the harder it will be to catch up.

2. Don’t invest in what you don’t know.

Whether it is a person, assets or a financial decision, don’t invest in anything before you know something about it. Be in the know when it comes to investing your hard-earned money. As you look into your retirement options, try starting in a field you are familiar with and expanding from there. 

3. What’s true for one is not true for all.

When it comes to investing, there is no surefire way to make millions in minutes. If your friend happened to hit it big on an idea, that doesn’t mean that lightning will strike twice. Be smart, and watch the market; economic bubbling could set you back if you decide to jump on the most popular investment. A good example of this is bitcoin; after it peaked, the price plummeted. And if you don’t have a buyer for your investment, you’ll be stuck with it.

4. No one can ‘sell’ you the secret. 

Between no-fail business models and pyramid schemes, it is hard to get rich by listening to a self-proclaimed expert. If it sounds too good to be true, it probably is. Try not to buy into anything without researching it first, especially if it’s something brand new.

5. Keep an eye on your investments.

When you do select your investments, be sure to keep an eye on them. While you could buy up stocks or other assets and let them accumulate funds, there’s no guarantee that any investment will continuously grow. You do not want a poor investment weighing you down. Know when to change your tactics and move your money where it will benefit you most.

6. Diversify your portfolio.

As you explore your investment options, the best way to secure your funds is by spreading them around among more than one option. You probably heard the expression “don’t put all your eggs in one basket”. Having all your funds focused on one asset can be detrimental should the investment fail.

7. Have a game plan.

Don’t just pick a few investments at random and hope they work. Try planning out your investments by using personal knowledge and research. Have a goal for the future and how much you want to earn by a certain point.

8. Invest for the long term.

Factor in what you need to do to reach your goal, and compound that with diverse investing. Don’t get attached to investments – be ready to let them go for the greater goal, especially if they aren’t working for your account.

Additionally, keep abreast of tax advantages, rising and falling markets and what kind of account you want to have. Select an asset that will grow over time and let it build up money for you. Be sure the ROI is worth it.

9. Set short-term goals.

You are ultimately playing the long game, but setting up a system with little rewards can be beneficial, too. Build up small amounts of cash to start so you can make bigger investments for the future.

10. Balance your debt.

While student loan debt is a looming issue that weighs many down, it shouldn’t cripple your future. Balance loan repayment with retirement savings. While it’s important to pay off your debt – and you’ll want to do it fast – you also want to have something that can grow. Avoid building up more debt; think beyond the now and into the future.

11. Explore budgeting options.

Apps and calculators can help you balance your debt and show you how much you can save. Having a tool that can keep all your financials in one spot can alert you to your spending habits so you can redirect your focus.

12. Test different investing styles.

Sometimes the only way to learn a new market is by experiencing it. It is OK to dip your toe into different investments. Start small, do the research and see if it’s right for you.

13. Explore investing tools.

Providing easy access, online tools and finance apps can give you a taste of investing. Test out digital investing, especially if you want to be hands-on with your personal finances.

14. Save; don’t charge.

Rather than grabbing big-ticket items, remember that a little saving goes a long way. While this may not apply to home or car purchases, where a good down payment will keep you from accumulating more unwanted debt, choosing saving goals over instant gratification will fit into your bigger picture as you put money aside for retirement. Also, your account won’t take a big hit from an upfront purchase.

15. Perform your due diligence.

The best way to handle future investments is to perform your due diligence. Research, explore and create a plan. Every individual’s experience is different, so form a retirement plan that works for your life and financial situation.

 

Have any tips or questions? Comment below 🙂

 

Source: Forbes, Millennial Investing: Top 15 Tips Heading Into 2019. 

 

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