Yes, we’re here to share a boring article about investing tips. But we think it’s worth the three minute read!
These days, you can hardly open your browser without being confronted by a headline about making $1 million in a year or quitting your day job to travel the world. It all seems too good to be true. All our lives we’ve been taught that the keys to success are dedication and hard work, but now we’re seeing people increase their wealth with savvy investments and other passive income streams.
So the question becomes, how do they do it? And how can those with little knowledge of investing start off on their journey? To help you take that first step, we’ve compiled our favorite investing tips. While we can’t guarantee you’ll be rolling in the dough by following these investing tips, we do think they can make meaningful improvements to your financial situation!
- Become financially secure.
It might seem like a no-brainer, but it’s important to be honest about whether your current salary and expenses provide enough leftover income for you to invest. You should be ahead of all of your monthly bills and have several months’ worth of income saved in an emergency fund before the thought of investing crosses your mind. Once you’ve done that, you can begin to figure out your long-term financial goals and how much extra cash flow you can contribute to investments. In the meantime though, keep reading to learn about options for investing smaller amounts of money.
- Set financial goals.
You’ll be in a better place to decide what type of investments are right for you once you’ve determined your long-term financial goals. What is your motivation for investing? Are you trying to save for a second house, retirement, or higher education? Determining these long-term goals will help you figure out which investment options best suit your needs, and it will help you come up with a reasonable timeline for achieving your goals.
- Pay off any high-interest debts.
Investing can seem attractive when you’re trying to get ahead of your debts, but it’s still a risk best taken when you’re financially stable. High-interest debt can be extremely costly, so take a look at your current debt load and make a concerted effort to attack the debts with the highest interest rates.
- Take advantage of employee retirement options
There are several types of retirement plans, such as a 401(K) and an individual retirement account (IRA), but we’ll spare you the details for now. The first thing to know is, don’t pass up your employer’s matching program. In short, employers often contribute funds to match a percentage of what you are contributing to your retirement account, so taking advantage of these offerings at your job is a great way to build financial security. And you can leave most of the legwork to the professional investors who manage your account.
- Start small.
Investing can seem intimidating to those of us who are unfamiliar with it, but with advances in technology, it is becoming easier and more accessible to those of us who are just starting out. You can start off small by investing an amount that you feel comfortable with; it can be as low as $5. Apps like Acorns and Stash are great for passive, first-time investors. By linking with your bank account, you can set up recurring daily, weekly, or monthly investments, and you can boost your investments by transferring more funds at any time. Stash is less hands on and provides a portfolio of exchange-traded funds for you to select from. It’s a great option for new investors or those who want guidance on where to invest their money.
See, that wasn’t so bad was it? Now it’s time to put these investing tips into practice!
The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from the website owner – Meed. Meed is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the article information relates to your unique circumstances. Meed is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.