Tag: start investing

  • Getting Started Investing is the Hardest Part

    Getting Started Investing is the Hardest Part

    Getting Started Investing is the Hardest Part
    Getting started investing can be very easy and smooth since you need a little money to start. Investing is better than savings accounts because it can shorten the period of earning.

    By Gorica Gligorijevic

    Getting started investing isn’t a big deal, it shouldn’t fright you. Honestly, it’s so easy.

    You know what, when I was just a little girl (my grandma used to sing this) my parents gave a lot of effort to teach me how to save money. Grandparents would like to give me money for some holidays with advice to keep it for rainy days. I had my savings account. From time to time, they would put some money there but most of the time they insisted I have to put. And I did it. Not frequently, I have to admit, but still. With time that habit got strong roots. Every month I’d put 10% of my earnings on my savings account. I am still doing the same. That first savings account is my 10%-account. 

    No matter how big or small portion is. 10% would every time end there. 

    I can only speak from personal experience but I am sure that other people could easily find themselves in the same situation. 

    I am not going to give you advice because I know that is almost impossible to put anything on your savings when you are living paycheck to paycheck. Yes, the amount of money that the majority have available to spend every month is insufficient to put something aside. Despite the old saying about money: If you save me today, I’ll save you tomorrow.

    But we all know how important is to have something aside. And it is possible. Let me show you how.

    How getting started investing

    Okay, do you know the rule “pay yourself first”? Yes, starting this is hard. But do you understand the meaning of this rule? Of course, you do but why not tell it again. This means you have to put on your savings every month some amount of money. It doesn’t matter how much it is. A few dollars, or other currency you have. Just when you get your salary, put aside several coins. Every month. And you will see, that amount will grow with time. Try this. I am not going to tell you how should you spend this money. You may have enough for exotic travel, or to buy a car, or after some time you may have enough for house buying deposit. Just start.

    No, I will never tell you to live below your means. 

    Sacrificing isn’t a good way to save anything except life. If you try this method, living below your means, you will be unhappy and you will always have the feeling that something was taken from you. It can be a trigger for something more serious. But, anyway, try not to purchase the famous brands, too expensive things. Do it occasionally if it makes you happy. But don’t let it be your goal. Life is a lot more than brands.

    Create a budget

    What you can do is to make a budget frame. It is a smart idea to write down the amount of money you have every month. You can do that in some excel spreadsheet, or just in some memo. Also, there is a lot of money management apps you can use. OK, that’s the first step. The next is to subtract all the costs you have, for example, taxes, debts, loans if you have (don’t worry, we all have), etc. What you have in your hands after these deductions is your net income. This is the amount you have to use as a base for creating your budget. So, track your spending to be able to make some adjustments if it is necessary and possible, of course. You should review your budget from time to time to be sure you are on a good track.

    Getting started investing 

    Do you know that your money can work for you? Yes. Let’s assume that after one year of saving you have enough for exotic travel. Why do you need to make it right now? Go somewhere else and save e.g. $1.000 on your trip. That amount is more than enough for getting started off investing. You can do that with less money, here you will find how. You can choose to invest in some mutual funds (it is probably the best for starting), or stocks, or real estate. By investing you will generate a greater return than your money sleeping in your savings account. If you invest in something you will let your money work for you. The whole process may be done with your banker’s help. Your bank has financial advisors, investment advisors, they will tell you where to invest. Or you can engage some brokers.  

    What are the advantages of investing

    One of the main advantages of investment is that you can have your money work for you to earn more. Let’s say this way. You don’t need to work more to earn more. Your investment will that for you. Investing could bring you a higher living standard, for example.

    Further, you can apply investment plans for saving and growing money. The best part of investing is that you can be a long-term investor and money earned from investments can be spent to cover future expenses, for example, for your retirement, or buying a house, new car, your children’s higher education costs, or just you want to have more.

    It is important for you to understand that investing isn’t gambling.

    You can make a profit on investment due to research and careful choice of a suitable investment vehicle. It isn’t betting. The truth is that you can make losses in the market. That’s the reason to make less risky investments. Never mind if they have lower returns. Stay on them until you find yourselves capable to play riskier. That time may never come. You can stay in safe investments for your whole life. It is OK. 

    In that way, you will protect your property in the long run. 

    So, you can see that getting started investing isn’t always the hardest part. It can be very easy and smooth. You just need a little money to start. At least if you have some targeted amount you have to save in some period, investing will short that period. You’ll be able to gain it sooner. Sounds good, don’t you think?

  • Invest in any age, put the money in the stock market

    Invest in any age, put the money in the stock market

    2 min read

    Invest in any age. Don’t care how old you are you, you should put the money in the stock market. You should invest. Also, it doesn’t relate to how wealthy you are.

    What makes us think like this.

    The stock market is, yet, the genuine way we have for the progress.

    Think!

    Who invests a nice part of salary every year can be compensated after a decent number of years.

    For our financial growth, long-term investing is the best way to increase our wealth.

    Build your investing portfolio with the right stock and bond mix.

    Support it with index funds to maintain costs low. Avoid hedge funds for small investors and ETFs. In other words, you have to be smart and manage your investments.

    It is never late. Yes, we know. Everyone will tell you that the early ages are the best time to start investing.

    That’s true, but also, you can invest in any age.

    Invest in any age, put the money in the stock market

    The stock market is open space, who would forbid you to invest at age after 40, for example? Or after 50?

    Human’s life is longer and longer. Hence you could buy some stock, invest in bonds and in some index fund and supply your investment account for the next 10 years.

    When picking stocks you need to have in mind how you project to manage your investment. Say you are in your 40s, so you might want to invest in some high-risk assets.

    You might choose shares in some new or small company. But you might be interested in some abroad assets and developing markets.

    If, however,  you plan to invest shortly before retirement you will need some different strategy.

    Therefore, you should invest in a less volatile property.  For example, you might like to invest in bonds and shares that are paying plentiful dividends. If you are an older investor who just starts investing it is recommended to hold a mix of stocks, bonds, and index funds. Just put your money in the stock market.

    Invest in any age no matter how old you are.

    The S&P 500 gives a 10%  return per year, with dividends included.

    You might think it isn’t too much, but thanks to phenomena of compound interest you will double your capital every seven years.

    You see, just a little amount of money simply put in the stock market can produce big pays after some time.

    Where to invest in your 50s?

    Invest in any age, put the money in the stock market

    As you are nearing your retirement it is allowed to be a more aggressive investor so put your money in the stock market. For example, you may have a portfolio with 60% in stocks and 40% in bonds. It is a good balance for the majority of investors. Keep in your mind your plan to retire at 65 and you have 15 years at least to collect very nice income thanks to compound interest.

    Of course, it is best if you can start earlier. But, truly, you may invest in any age. Think how much you will have after 14 years if you start in your 50s with $10,000. The compound interest phenomena are on the scene again. Just count, after 7 years double, and the next 7 years, and… Not bad, not at all.

    Maybe you wouldn’t be able to buy the new house but you might have enough for a relaxed life.

    That’s why you should invest in any age.

    risk disclosure

Traders-Paradise