Knowing what to do with your money and how
to invest it is often the most difficult and confusing aspect of managing your
personal finances. When we think of investments it’s natural to think of ISA’s,
stocks and bonds and even cryptocurrencies such as Bitcoin – Iconomi
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Many people are wary of investments due to a fear of the unknown, after all the
seemingly cutthroat world of investments can lead to you losing money – or your
entire life savings if you were initially bold enough. Who do you buy from? Who
can you trust?
However, successful investors will tell you
that investing doesn’t have to be a stressful or frightening concept if done
correctly, it’s actually an enjoyable as well as a potentially rewarding
experience.
So, if you’re stepping into the investment
arena for the first time, what investment principals should you be made aware
of? Read on for a straightforward investments guide.
Start investing as soon as possible
Don’t be fooled into thinking that stocks
and shares are just for older men in suits. The sooner you start investing, the
sooner your earnings will multiply, which in turn means you’ll have to invest
less to reach those investment goals. So, start today.
Speak with a financial advisor
It’s common
sense to seek out professional advice before you invest
your hard-earned money into anything. Avoid jumping straight into a potential
investment simply because you’ve received a good tip. Reach out to a financial
advisor first and don’t spend a penny unless you’re completely sure it’s the
right thing to do.
Save money first
A simple concept, but a wholly accurate
one. You cannot invest money you don’t have, therefore saving as much as you
can, will certainly go a long way. Consider ways of trimming your monthly budget and focus on
building your funds before you take them to the markets. It’s also important to
ensure you have enough money to pay your bills each month and the capacity to
pay for your other financial responsibilities. Don’t leave yourself short or
overstretch your paycheck.
Learn as much as you can
Market trading is complicated, even the
terminology is puzzling, to say the least. However, the more you learn, the
better your decisions will be. Learn as much as you can about creating your own
portfolio, market behaviours and patterns, jargon as well as stocks and
bonds. The more you learn, the more
you’ll enjoy your investment experiences.
Keep it simple
When investing, it’s important to keep
within the realms of your understanding. Friends, family and colleagues may be
trying to tempt you away from what you know but straying away from what you
know could cost you – literally. Keeping your initial investments simple will
always serve you better than risking it all on something you know very little
about.
Keep yourself informed
Keep tabs on your investments, read
relevant news articles and keep yourself informed of any emerging market trends
and the state of the global economy.
