One of your New Years’ resolutions this year may have been to earn more money, to take control of your finances, or to start a new income stream – investing can make all of those things happen for you. Especially, if you’re smart about how you build your portfolio.
In this guide, we will talk you through 6 small steps that you can take this week to open up an investment portfolio. The best day to start was yesterday, but the second-best day is today.
Step 1 – Choose what you want to invest in
There are more options than ever when it comes to investing. You can invest in the stock market, in bonds, in precious metals, or even in cryptocurrency.
They are all great options and you probably should invest in all of them eventually to keep your portfolio diverse. However, you need to choose where to start investing.
Once you have chosen it’s time to start researching.
If you decide to invest in the stock market, https://blog.thomaskralow.com/how-many-trading-days-in-a-year/ is a great place to start researching.
Step 2 – Choose how much you are willing to invest
Once you have chosen what kind of investment you want to make and have done research into that industry, it’s time to decide how much money you are going to put aside for investing.
You may already have a lump sum of money ready to invest.
We recommend that you only invest money that you can afford to lose. This may be $5 a month or this may be $1000 a month. You need to work to your own budget.
Every month you should put aside a little more into your investment pot. It will all add up in no time.
Step 3 – Never borrow money to invest
If you cannot afford to invest right now, then your next financial goal needs to be to get yourself in that position. Do not be tempted to take a shortcut and take out a loan.
There is no guarantee that you will make money from investing and you do not want to risk losing the money you need to pay down a loan.
The way to get the most out of investing is to use money that you can afford to lose and money that is 100% yours.
Step 4 – Choose your investment management system
If you want someone else to keep an eye on your stocks for you then you are going to need to hire a stockbroker or put your money into an investment IRA.
If you want to invest in Cryptocurrency then you are going to need a crypto-wallet.
If you want to buy and sell your own stocks then you are going to need a system or app that allows you to do that.
Do some research before settling on one, you will want to make sure that you are getting the best value for your money. Don’t forget to read the small print and check out what their fees are.
Step 5 – It is time to invest
Now that you know what you are going to invest in, have your investment method, and your investment pot – it is time to make your first investment.
We recommend that you don’t put all your money into one investment, instead, split it across multiple opportunities.
Once you have put your money down, it is time to sit back and wait. You will want to keep an eye on your investments as well as the market as a whole.
Step 6 – Start looking for your next investment
If you are following our advice then you won’t have put all your money into your first investment. So, now it is time to start looking into other investment opportunities for yourself.
You should try to find an opportunity that is very different from the first type of investment that you made. A strong portfolio is a diverse one. If one industry or company tanks then you want to make sure that the rest of your portfolio can support you.
Keep an eye out for opportunities that interest you and your wallet.
All rich people invest in one way or another. But investing is important for all of us to do, even if we aren’t painfully rich. Investing will allow you to earn more money and move closer to the life you want to live – and you can move towards that today.