Investing Money: A Simple Guide to Get Started
Investors are often depicted as men in business suits, and this can make investing seem as if it requires specialized skills to even get started. But, that is not true. Anyone can start investing using a few easy steps, and we want to help you get started.
- First, know your finances and what is reasonable within your budget to invest
Before you begin investing, it is important to know your overall financial situation. If you do not already have a budget or have a good view of where your money is going, we suggest you first take an hour or two to get a better view of the bigger picture. If you want a tool to help you get started, we suggest using an app like Mint. Once you have a general idea, then you can see what is reasonable for you to invest each month. The amount you invest does not have to be large. In fact, it might be best to start out with a handful of dollars and go from there.
- Secondly, understand your goals and write them down
Usually people have either a short-term or long-term financial goal in mind. Maybe you are looking to save for a vacation or to fix your water heater or put in hardwood floors. Alternatively, you might be looking to prepare for college, buy a house, or save for retirement. Regardless of how short or long term your goal is, it is good to know what you are working towards, so that you can see if you’re getting closer to your goal.
- Next, figure out which ways work for you to invest and open up an account
There are a number of ways to start investing. Maybe your job offers 401k accounts or maybe you want to invest from home using a simple investment app, such as Acorns. Explore your options and decide what is best for you. Once you have decided what works best and does not feel intimidating, then open your account. With apps like Acorns, all you need to do is connect a credit or debit card, and you can easily open an account.
- Lastly, review your accounts periodically
Once you have opened up an account, it is good to periodically check it to see how it is performing. With any good account, your money should grow over time. Depending on your goal, you might want to check your account monthly or quarterly. However, it is important to review your investments and make adjustments as needed to guarantee the most growth in your investment over time.
Whatever you decide, don’t let investing be intimidating. There are a number of tools and resources out there to help you get started quickly and easily with as little as your spare change. We hope these tips will help you get started! Good luck investing!