What could be the best way to grow your funds? Investing would be the most obvious answer. Investing is a tricky business and can be intimidating for many beginners as there's a lot to grasp. However, with mere basics, you can start growing your funds gradually and learn your way into it.
To begin with, start investing with small amounts after identifying the most suitable investment bucket for you. You can start with as low as $100-$500 and need not wait to accumulate investing funds. Regardless of which budgeting method works best for you, it’s important to have an established budget to understand how much you can invest each month without cutting into the money allocated towards your monthly essentials.
Where to start
If you are brand-new to this concept, you can start by researching the aspects and terms of investing and understanding how to plan and manage your funds. You will come across abundant publications and video tutorials throughout the web. If all this information overwhelms you, sign up for a short course on investing which focuses on introducing beginners to the world of investing.
Determine Your Goal
Understand the motive for investing. What do you want to achieve, short-term profits or long-term benefits for retirement, housing, education, etc? According to your goals, build your investment portfolio considering the risk and return attributes. You will have abundant options which could be the right fit for you.
Planning
You need to plan and channelize funds for investing without breaking into your savings or emergency funds. Estimate the amount you would want to invest per month or at regular intervals and plan your budget accordingly. Develop the discipline to set aside these funds as decided by you instead of spending them on other unnecessary expenses.
Setup an Investment Account
You can have an investment account with your bank or through any wealth management company or sign-up on an investing app. Several investing mobile apps give a joining incentive wherein they deposit $10-$50 in your account.
Automate Investing
Pre-determine the funds you are interested in investing and opt for automated bank payments to those investments. This lessens your efforts and ensures consistency. Due to automation, you would not have these funds available for unnecessary expenses. It has the added benefits of making your future more secure, cutting your current spending, and reducing financial friction at home.
Invest Your Profits
As you start with small amounts, you might be able to make small profits through some of your investments. Try to reinvest all or most part of your profits to reap the benefits of cumulative profits in the future. You may choose to invest in the same fund or look for more profitable options. In anyways, you will be expanding or diversifying your existing portfolio.
Subscribe to Investing Material
Get yourself educated by subscribing to investment-related blogs, podcasts, publications or newsletters, etc. The knowledge gained through these sources will help you make more informed decisions and minimize your risks while maximizing profits. Join investor groups to communicate with other investors and exchange knowledge.
To sum it up, there is no right time to start investing. You will learn and develop your investing skills by diving into this arena. So try to make the most of your existing funds by putting them to work. Also, be prepared to digest some losses by considering them as your learning cost. To know more about how and where to begin reach out to us or leave a message in the comment section below.
