As a newbie in the world of investing, you may feel overwhelmed by the various basis and tools available on the internet to help you kick-start your investment journey in the most informed way. Fortunately, with the resources on the internet and the ever-evolving investment apps, it will become easier for you than ever before.
Investing your money in buying assets is an incredible way to build wealth overnight, it can also be a complicated task especially when you are just getting started. You’ll have to know the basics, tools, procedures, and fundamentals before keying into the bandwagon.
This post will break down the tips and tricks you need to know about investing before putting your head so let’s dive in.
1: Start with a goal
Before buying that shares you must know what your goal is, it is very crucial to define your goal because it will allow you to make an informed decision. Ask yourself these questions:
What are you investing for? Are you investing for retirement or buying a new car? Are you investing to pay off debts or you are investing in your child’s education? Your goal will determine how much risk you can take, and what type of investment you should consider.
2: Educate yourself
The internet is full of resources that will help shape your knowledge about the type of investment you plan to consider.
This is because there are many types of investment that one can consider. A list of them is bonds, stocks, and real estate, each of them comes with its own risk and potential returns. Learning about them will give you time to understand how they work and ultimately go for the one you feel is right for you.
Don’t pick an asset because it has low risk. Pick it if you know it will help you achieve a long time goal.
3: Start with small money
It is very critical to start with a small amount when you are getting started. This is how to begin, start small and increase your stake over time if you need to. It will allow you to quickly learn from a mistake without risking too much money.
Investing is a journey, you’ll need time to adjust to the system. You may increase the stake when you become more comfortable with investing.
Read: Top 8 Best Investment Apps You Should Consider in 2023
4: Consider an investment advice app
An investment app is very critical in starting your journey, it is essential to consider factors like fees, interest rates, availability, security, and customer support. Consider downloading an investment app that provides advice, analysis of the latest trends, and recommendations to its users regularly.
A big example is the Motley Fool app. It’s an app that provides all of these things I’ve mentioned above. The app also provides investment tools such as stock picks, advice, and strategies on various investments to help users know what’s trending in the world of investment.
5: Diversify your portfolio
Investing is like a business and you must operate it as one, don’t get caught up with one basket, instead diversify your portfolio to spread your risk across different investment tools. Consider investing in a mix of real estate, stocks, and bonds to help maximize your risk and increase your potential returns.
6: Stick to your goal
Once you start investing, it will be hard to ignore the news about market movements, commodities, inflation, interest rates, etc.
A true investor should be looking at long-term trends and macroeconomic factors that originally shaped their plan and always keep these as their focus.
7: Monitor your investment
It’s critical to start monitoring your investment as you begin investing. Some investment apps make it easy for you to monitor your portfolio regularly to ensure that they are performing as expected.
8: Be patient
Investment takes time because it’s a long-term goal. Don’t be discouraged if the market is not performing as expected. Don’t be discourage if you are not seeing significant difference. Stick to your goal and be patient. Over time, your investment has the potential to grow significantly.
9: Stay updated
The world of investing is constantly changing. Stay updated on the latest news and market trends so that you can be current.
10: Try to save 10% of your monthly income
This last tip is for smart investors, always try to save part of your monthly income in your retirement plan. If you can’t save that much, at least gradually increase your savings annually.
There are apps that can help you save money and also earn returns on your savings. Example is Piggyvest.
That’s A Wrap!
These tips will help kickstart your investment journey in the right direction if you follow them. Always keep in mind that investment is a long-term plan and you’ll keep getting better as you progress. You might want to learn about the best investing apps in Nigeria.
