10 Key Tips To Jumpstart Your Investing Endeavours!
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Are you thinking about investing but are not sure how to get started? Not to fear, as this post will provide 10 key tips for you to make a great start and get the most out of your investment!
1) Get an education: When starting off investing, it is important and your best interest to get an education before making investments. What’s more is that this education doesn’t have to be formal university/college style education but can easily be done virtually anywhere at anytime!
This education can involve methods such as reading the books of well renowned investors such as books and autobiographies of Warren Buffet, George Soros and Jesse Lauriston Livermore, researching the investment methods of these aforementioned entrepreneurs, researching basic investment terms (i.e. ROI Return on Investment, Stocks, Bonds, Penny Stocks, Compounded Interest such terms with definitions are easily accessible through online dictionaries and/or Wikipedia) and their definitions, watching investment video tips on YouTube or even free online courses which are plentiful (so look around!!) are just some of the many ways to get a great informal education which will greatly prepare you in beginning your investments by endowing you with general knowledge about investment sector.
2) Don’t put all your eggs in one basket: When making your first investments it is important to remember the rule “not to put all your eggs in one basket” or put simply do not rely on one flow of income through investments.
So to avoid “putting all your eggs in one basket” diversify your investments so you can avoid losing all your money if one source of investment fails and to make maximum return through a variety of cash generating investment sources.
Look around and you will be sure find a variety of potentially profitable areas to invest from different company stocks, to the various real estate sectors, the gold markets, business startups, Gold, Oil and many more potentially lucrative niches you can invest your money in!
3) Get Thorough Advice: When investing so you can make the right decisions, find the right niches to invest your money in which generate maximum return!
Especially when starting up advice from an experienced and successful investment mentor will be of great help for having a successful beginning to your investment career.
What’s more is the more experienced and successful your mentor is, the greater are your chances of success as you will be able to use same the advice, methodology and strategies of your successful investment mentor to attain maximum return yourself when investing!
4) Research! Before jumping in and making investment it is important to know the investment, market/s, niches, various companies to invest in, the reputation of these companies, (if you’re investing in real estate) the best housing markets to invest in and all other statistics integral to making successful investments.
This way, you will know or at least be able to determine your best first course and area for investment thereby increasing your chances of making the right/wise investments and getting maximum return! Such research can be done via the Internet, from the tips of your mobile devices some like iPhones, which feature “Stocks” section, and by general observations by getting out there and observing for yourself the best investment niches in your area!
5) Focus on The Long Term! When investing in stocks you will notice that stocks tend to fluctuate. One day they are up and the next day they are down in value. What do you do then? Many people will sell there stocks when their value peaks and there is common notion that investing in stocks is gambling as the market is unpredictable.
With that being said selling your stock right away reduces your chances of making maximum return. Instead prevent your investments from being an insecure gamble by holding onto your stock/s for a while, waiting and then at the right moment sell those stocks when they’ve increased your values (as stocks go down but they will also go up!) so that you can get maximum long term return instead of minimum short term value when investing!
6) Have a sum of money set away for Investments only: So you can make the best out investing and get maximum return without being distracted from or by other financial needs it is in your best interest to budget! So have an amount of money that you allocate for investing and investing alone such as $2000 allocated exclusively for investments monthly/yearly. That way you will be better able to balance other financial expenses and your investments without having to compromise or worry about either!
7) Start Small: When making investments it is in your best interest for long-term gain to start with small investments. By investing a modest amount like $2000 monthly/yearly will not only prevent you from being financially crippled by possible financial losses be it from investing or another financial concern but it will allow you to slowly but surely get the hang as well as learn the art of investments which will bode well for your long term success as an investor!
Hence, starting small allows you to reduce risks while investing so you can overtime learn from wins as well as mistakes in order to be a better hence more successful investor with experience!
8) But Dream Big!! At the same time you are in the investment field to boost your finances and be rich not just so don’t think that investing modestly is going to prevent you from being rich! Rather modest investments will allow you to build wealth over time through returns with minimized risk while gaining crucial knowledge about investing first hand so you can invest greater amounts meaning greater return in the long run!
9) Find The Right Companies/Niches! Before investing it is wise to sit down and consider your plan of action. In particular, find reputable companies, which can offer the best long-term gain and will stay profitable in the near future. Companies like Apple, which are very profitable and well established, are most likely to generate a great return in the long run if you invest in the likes of these companies. Furthermore, consider companies with stock prices that are within your budget range and are (i.e. with a monthly or yearly investment budget of $2000 dollars select the companies offering stocks with prices affordable for this budget that all your investment money isn’t spent) relatively affordable so you can keep investing without running out of investment money right away.
10) Don’t Wait, Start Young Start Now! In order to gain maximum long-term investment return now is the time to start! If you are young, don’t wait until you graduate or become financially stable just go for it. Rough out any money you have and budget some of it towards investments. If you cut down on excess shopping, partying, food, entertainment or other pastimes you will most certainly have a rather significant chunk of saved money much of which you can use for investments.
If you’re a working professional no need to worry start investing now while you still have time as it will pay off in the long run. Carefully budget your money, save and cut down on unnecessary expenses so you have money to invest. The rewards of investing now instead of waiting for another date are plentiful. Plus an early start means more time to learn, grow and invest money for larger long-term returns!
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11) Stick To Your Guns! You’re ready to invest and when you’re investing always remember and follow the rule of “Sticking To Your Guns” or in other words being yourself and trusting your instincts. With proper investment education, research and knowledge on reputable investment niches you will be able to trust yourself better and be confident in your ability as an investor.
This means you don’t have to follow the masses in investing and can come out on top by following what you learned over popular opinion. As renowned Investor Warren Buffet said you should “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” which means trust your own intuition and knowledge rather than following the crowd.
Indeed Mr. Buffet’s piece saying is exemplified by his status as one of the most successful Investors. So by following the words of Mr. Buffet, set your own investment strategy instead of blindly following others, gain proper and constant knowledge so you too can become a successful investor over time.
Since your mind is your greatest asset exercise your brainpower, strive for knowledge, be yourself, develop your own investment style, learn from your mistakes and be confident to set yourself on the path for maximum long-term investment success!