Most people know that leaving the money in the bank isn’t the smartest idea, when you could instead put it to work and make it grow. And they also know that one of the best ways to put your money to work is to invest it. But if everyone knows this, why isn’t everyone doing it? It comes down to fear. Because the world of investing is so wrapped up in confusing terms and horror stories, people switch off from the idea before they’ve even considered it. Let’s change that. Below, we take a look at some information you’ll need before getting your investing journey underway.
What It’s Not
Before you get lost in the daydream of all the benefits of investing, which are, admittedly, plentiful, it’s important to know what investing won’t do for you. It’s not going to make you rich, either overnight or spread over a number of years. It’s a way to protect and build your finances, but it’s not going to transform them. If you’re looking for a get rich quick scheme, then you’ll need to look elsewhere.
Define Your Goals
You wouldn’t jump into an ocean without thinking beforehand about how far you’re going to swim. In life, it’s important to have an objective whatever you’re doing, and especially so when it comes to investing. Without it, you’ll just be sailing along. Take the time to figure out what it is you’re trying to achieve by entering the investing game. It might be that what you’re looking for is better achieved elsewhere. In any case, having a set target will give you something to work towards. Investing is a game for the patient person, and patience is easier to come by when you can see yourself moving in the right direction.
Learn the Rules
It’s not advisable to do anything that involves risk without doing some reading beforehand! The good thing about investing is that it is not a subject where information is hard to come by. There are a million and one books, podcasts, blogs, seminars, and much more that’ll outline the basics of the subject. The more you know, the more likely it is that you’ll succeed!
Who’s in Charge?
It’s a rare person who is fully in control of their investing. To get to that level requires many years of experiences and bags of knowledge! In all likelihood, you’ll be working with others to make your investing experience a success. But the question is: who will you be working with? Many choose to work with a financial advisor, but there are a lot of advantages to the increasingly popular robo-advisors, as outlined in this Wealthfront review. However, it’s important that you stay well-informed about your money, regardless of who is responsible for doing the investing on your behalf.
Don’t Freak Out
Finally, remember that investing goes up and down. Don’t panic when it seems like things are on a downward curve; the true outcome of your investments will be felt over years, not by a temporary blip.