“Wow, I wish I had less money,” said no one ever. Whether you’re saving for a honeymoon in Aruba or to pay off that student debt that’s keeping you up at night, investing your money wisely can pay off big time. If investing seems daunting or your entire knowledge of investments is based off of binging Shark Tank, don’t fret. These smart investment tips for beginners will help get you started.
Step 1: Practice Makes Perfect
You know how your piano teacher would annoyingly drill into your head that practice makes perfect? Well, she has a point. Practice definitely helps when it comes to investing. Investing your money is kind of like online dating. It takes a while to get comfortable and there are so many options, so take all the time you need and do your research before swiping right.
We’re fans of Investopedia’s Stock Simulator, an app that lets you trade pretend money virtually. It’s kind of like The Sims for first-time investors. Using this platform can be a great way to experiment with trading money so that you actually have money to trade in real life. Take it from Hermione Granger. There’s no such thing as too much research.
Step 2: Be Predictable
Ignore everything you’ve learned from romcoms. This is the one time where it pays to be predictable. If you’ve been following the news lately, you probably know that the Dow Jones constantly moves up and down. One major global epidemic like Corona and that stock you’ve been banking on to make money, plummets overnight.
Until 2012, investors’ options were pretty much limited to the stock market, but thanks to the JOBS Act (thank you Barack) accredited investors can now explore alternative investment opportunities which are far less risky.
Take for example specialty investments like self-storage facilities, mobile homes and parking lots. These kinds of investments are for those of us who can’t stomach the idea of losing a small down payment on a house. They’re backed by assets which means that you can breathe easy knowing that if anything goes wrong, assets can be sold to get your money back.
Once you get the hang of things, you can start thinking about diversifying your investment portfolio.
Step 3: Slow and Steady Wins the Race
Peter Parker once said with great power comes great responsibility, but in the world of investments with great responsibility comes great power.
Before you start honing in on your inner Warren Buffet, make sure you have enough money in your savings account to keep you afloat for at least half a year. Once you’re ready to invest, choose an amount that you could live with potentially losing and then just go for it.
The bottom line is always invest responsibly.
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