Posts tagged ‘investing money’

How to get started with investing for beginners

In your journey to financial success and wealth accumulation, you will eventually come to realize that saving money alone is not enough. To take your money to the next level, you need to start investing. Investing is simply the act of putting your money into a business or asset for some time, in hopes of getting a bigger return in the future. While it is similar to keeping your money in a savings account, there are two major differences: the returns with investments are potentially bigger, but there is also risk involved, where you can make significantly more money than in a savings account, but could potentially lose money. With a savings account, while the returns may be smaller, your money is guaranteed and there is no risk of losing it.

If you want to take the next step towards financial independence and want to start investing, here are a few things to consider and keep in mind:

Decide on your goal from investing: is it to make more money? is it to diversify your sources of income? or is simply take you to the next step towards better wealth accumulation.

How much to invest : as a beginner, best to start with a smaller amount, until you feel more comfortable and have better understanding of how things work

Where to invest : another consideration is which bank or discount brokerage to use. There are various websites and tools online that compare various discount brokerages, and while transaction fees should be a priority to consider, there may be other factors to play when deciding on where to do your investments (and maybe trading)

What to invest in: last but not least, you need to consider the type of investments you will be purchasing. While stocks (also known as equities) are probably the first thing that comes to mind, there are other assets to think about such as REITs, ETFs, commodities, FOREX, Crypto, bonds, mutual funds and more.

It is safe to say, no billionaire – and most millionaires – would have reached their level of financial success, without some form of investment. Investment doesn’t have to be about stocks or mutual funds, and may include buying land, investing in a business, real estate etc. But as a beginner, and to get your feet wet, best to start with a small amount that you are comfortable with and one that you wouldn’t mind lose some or most, and buying into one or two stocks and mutual funds.