Wondering how to start investing right now? Like most new things, it is hard to get started when you are not sure where to begin. This simple guide to investing will give you a boost. The world of investing is not as scary (or as difficult) as it might seem.
What ‘they’ don’t want you to know is that there is a lot that you can do on your own without having to pay heft fess to a personal advisor. Not to say a personal advisor is not worth the investment in many cases, BUT, when you are just getting starting, your funds might be limited to what you can explore. Having at least a few tips and tricks under your belt will help you feel more comfortable to start investing today. If your goal is to create savings and build wealth on that savings, investing is a great way to do that.
There are many investing book out there, along with podcasts and blogs, that can help you further your knowledge along the way. But these 4 areas discussed below will help you right now.
You know those people that walk through life with seemingly no stress at all? Ever wonder what their secret is? Their secret is having multiple residual income streams, where their money makes money for them. Imagine the peace you will feel when your money does all the hard work for you? A little time and investment upfront will go a long way to creating a new future for yourself.
Start building your wealth today. Do not focus on your income. Your income is not the same as your net worth. Focus on building your wealth, and building your net worth. This is the long game, and the returns you desire will soon be within reach.
What is investing?
You can put your money behind virtually anything you might expect to increase value. The value of each is determined by supply and demand, so, the increase in demand and decrease in supply, the higher the price. The fact is, investing is easy. Put money on something and you’ve just investing. The tricky part is knowing what to invest in. But, don’t let the risk scare you away. Putting thought behind your investments is required, period. Which makes it a lot easier than most people realize.
Your goal in investing will be to maximize your returns and minimizing risk. And there are proven strategies that make investing a little less stressful than it’s hyped up to be.
Why You Should Start Investing Today
The biggest factor in investing that helps build wealth is TIME. By starting today, and not tomorrow, and not in 3 months or a year from now, you have already given yourself a leg up. Let’s talk about compounding interest. Compounding interest is an unbelievable force that will make you wish you started investing 5 years ago. As your interest earned over time continues to increase, you begin making money on your interest, compounding your results over time. This is why you need to start investing right now!
Whether you have $10 or $10,000 — the biggest mistake is to wait. Get started and see your money grow.
There are so many excuses to why people delay their start to investing. You think you don’t have enough money to get started, you worry about losing money, or that you do not have enough knowledge to get started…By making these excuses you are literally saying ‘no’ to more money that could be in your pocket right now.
If you are serious about building wealth and about building your future, you need to start investing today.
Start Investing Now in 4 Easy Steps
1. Invest in tax-advantaged accounts
One of the biggest drains on your money will always be TAXES. So you will want to strategize ways to minimize taxes on your investments. Two types of tax-advantaged accounts are 401Ks and IRAs.
2. Determine your 401K and IRA Investment
The IRA and 401K in general are used for retirement savings and are not investments themselves. But what you will need to do is choose which investments will feed money into these accounts.
A 401K plan is usually only offered through employment and are typically associated with high fees. It is recommended to find a portfolio that represents the level of risk you are willing to take.
If investing in a Traditional IRA or Roth IRA, you may want to put your investments into a target date retirement fund, which will naturally adjust between bonds and stocks investment allocations so that you will not have to do much as you near retirement. As you learn more about investing, you may change this strategy, but you might want to stick with this to start off.
3. Save, save, and save some more!
One of the most difficult tasks to give to any one human is to SAVE money, and as much as possible. Let’s be honest, when we have money, we want to spend it. It is why we work as hard as we do. We don’t work hard to not enjoy things in life. BUT, in order to enjoy things both now and in the future, you need to think of the long game here and start planning. Building wealth over focusing on your current income will change your life.
One tip that works wonders is instead of having your investment money go into a savings account first, let that money go directly into your investment account. If you let your money go into your savings account, you are much more likely to spend it within that year.
4. Track your Money
One huge asset you can add to your investing future is a way to track your money. I recommend a free investment app like Mint (mint.com).
A tool like this will help you on your way to tracking your financial status and help you feel confident on your way to building your wealth.