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Investment Tips for Beginners


What do you need to know about investing?


Last week, we wrote about how you can make your money work for you. This week we’re going to expand upon one of those possibilities – investing!

We know that investing can sound overwhelming and complicated. We’re going to help break it down to seem more achievable for those who don’t know much about it or don’t know where to get started. So – what should you do or know before you start investing?




Before you can even get to the investment part of things, you need to take a look at your personal situation, finances, and goals. The point of investing is to make money, but if you do it irresponsibly it may do more harm than good.

First, think about what exactly you want to get out of investing. Are you trying to earn money now, or earn the most you can for the future? Is this going to be a source of usable income or is it going towards a retirement plan or other savings account? Create a list of goals you’re trying to achieve financially. This can help you decide if you’re looking for short, mid, or long-term investments.

Next, look at your finances and your personal circumstances to determine how ready you are for investment. How much money can you budget out for investing from each paycheck? Are you in a good position to be able to handle an investment that falls through? When are you expecting to get your profit from investing? What kind of investments do you want to make that are beneficial to you? Ask yourself these questions and any others that arise to figure out how ready you are for investing.




Do some research. Look into getting a guide to investing, watch videos with tutorials and advice, or contact a professional. Take notes of terminology, questions you have, and other important things to know about investment so that you’re thoroughly prepared and knowledgeable before you dive in.

Some things you may want to start with looking into are the different types of investments you can make, what words like “stocks,” “bonds,” “dollar cost averaging,” “capital appreciation,” and “risk tolerance” mean (these are just a few ideas – there are plenty of words to familiarize yourself with! Make a list of definitions to keep yourself on top of verbiage in the investment world), and if you want to enlist the help of a broker or brokerage for your investments.

Talk to professional investors or investment bankers. They’ll have the experience and knowledge to help you answer any questions or explain processes that you don’t understand. You might also want to talk to the people around you – family, friends, coworkers – to learn about their investment experiences to see what advice they might have to offer you.


Get Started


It’s important to start investing as soon as possible – yes, that means the younger, the better! This is largely in part due to compounding: the process where earnings like capital gains or interest are reinvested to generate more profit over time, meaning the initial principal invested and the principal’s earnings will both start bringing in financial returns. The earlier you start investing and bringing in earnings, the more earnings you can expect years down the line.

Another thing to remember is that you should diversify your investment portfolio. Professionals recommend seven to ten investments at a time, because variety tends to be more beneficial than just two or three investments. However, that doesn’t mean you should invest in anything or everything. Start with things that are familiar to you, that interest you, or that you directly benefit from.

Low risk is better for beginners! Avoid stocks with notorious risk like high percentage chance of loss or underperformance.  



The fastest way to get to know investing is to get out there and do it. Start with these tips, then get going! The more you plan for and research your investments, the more likely you are to experience success. Experience in general is going to guide you to where you want to go, so open that investment account and start your plan of action of garnering returns!



Monday, June 11, 2018
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