Embarking on an investment journey may not be easy, so to help you get started, here are the best investment tricks for beginners you can use to get started.
Being a beginner in any field comes with great challenges, but it also brings new opportunities and knowledge. While going through the challenges, you should always keep in mind why you started in the first place. When it comes to investing, you start on this path to grow your money.
Why You Should Start Investing
Some people never even start investing. They settle with what they earn, and some are actually happy not having to worry about an investment portfolio or making more money. That is not a judgment, not everyone can put their energy and money into investments. But before you decide if this is your case as well, let’s talk about why you should invest money and not let opportunities slip away.
If you have a good financial situation, you save money for emergencies. And you might feel comfortable staying at this level, but that does not mean that you should settle. Think about it this way: even though you can feel satisfied with your current situation, how do you feel about your financial future? Uncertainty is always part of life and you should not count only on your savings account.
Investing does not only make you more money in the long term, but it also provides you with a financial safety net. It will guarantee you a future with less worry, more resources to live your desired lifestyle, and enough stability for your family and loved ones. If this sparked your interest, let’s focus on the best investment tricks that can help you make your first investment and serve as a solid foundation for long-term financial success.
Best Investment Tricks for Beginners
Analyze your finances before investing your money
Whether you are a first-time investor or just a beginner with a few investments in your portfolio, you should always analyze your finances before investing. It’s very tempting to fall into the trap of investing blindly with hopes of a high return on investment. This can, unfortunately, bring you into an undesired situation where you might get into debt to cover the money you just invested. So be very mindful of how you use each dollar.
Learn the basics and do your research
Investing has risks, like everything that we do in life. While risks are worth taking and every mistake helps you learn more about what you can improve along the way, you should be cautious in order to diminish unpleasant impacts. You can do that by learning the basics of investing and do your research about each opportunity before putting your money in it.
Consider taking an investment course
Learning is a never-ending process, no matter what field we’re talking about. Investments are no different. So while you can find a lot of online resources out there that help you on your investment journey, taking an online course can help you learn more faster. You can take an online course, like this one from Udemy.
Start investing as early as you can
If you are 20 years old and you think you should wait to become older before you start investing, guess what? You don’t have to because that is a preconception. The earlier you start investing the more you will see your portfolio grow and have a more secure financial future. You can start with a minimum amount and a retirement plan. You’ll have plenty of opportunities to add more investments to your portfolio in time.
Use a Robo-Advisor
Robo-Advisors are one of the best investment tricks for beginners. Even if you don’t have any knowledge about investments, a Robo-Advisor like Stash, for example, can help you get started. Probably one of the best features for beginners this app can offer is that you can invest as little as $1. This way you can test the investment waters without taking huge risks.
Get help from a financial advisor
If you’re a beginner you know how hard it is to manage all the ups and downs of investing, while learning how to navigate your finances. A financial advisor can help you learn how to understand your financial situation and what are the best and safest investment opportunities for you.
If you want to go solo, use investment apps
Since we now live in a digital world, it’s safe to say we are never alone in any idea we want to pursue. Investment apps are a great perk of this digital world. They help you keep your finances in one place, invest in a variety of investment options and keep you up to date with your portfolio’s progress. Learn the difference between stock trading apps and robo-advisors.
Dedicate a percentage of your income to investments
One of the best investment tricks for beginners is to keep a steady monthly amount out of your income for future investments. Save money each month and it will help you have a constant amount that you can dedicate to your investments. That way you grow your portfolio each month and build a more secure financial future for you and your family.
If you keep going and you learn from each setback and challenge, you’ll go from being a beginner to a knowledgeable investor sooner than you initially thought. And to help you on your investment journey, here is a list we’ve made of the best micro-investing apps.
Here’s the thing: the sooner you start the better and starting can include contributing to your company’s 401K or similar plan, through a Roth account, or a taxable brokerage account. Start small, if you need, but get started nonetheless.