While the will to invest and do right with your money may exist, it can be challenging to know who to trust with the many options available and “experts” offering advice. When it comes to investing, there are many factors to consider.
Investing is Risky
It is important to evaluate investments against how much money you have based on monthly expenses and income. Your day-to-day needs – along with savings and emergency funds – should come first, and only after you’ve mapped out your plan to cover these essentials should you determine how much to invest. Never assume that you’ll have money from investment gains to pay the bills, and view anything earned as a bonus you can save for later.
Investing Differs for Each Person
Financial investment is not “one-size-fits-all.” Before entering the game, study the full range of options. While stocks are the most widely known investment, simpler and lower-cost mutual funds and exchange-traded funds (ETFs) may be better for newer investors. And with a host of digital tools, apps and technologies available, you can learn wherever, whenever and however you’d like. If you’re eager to invest but need more guidance, consider meeting with a financial advisor who can help you craft a successful plan.
Investing is a Marathon, not a Sprint
When possible, ride out the highs and lows for the long-term gains. Regardless of your approach, be sure to keep a detailed investment log, either independently or with your advisor. Thorough and insightful notes can alert you to potentially undiscovered trends and make it easier to identify – and ultimately avoid repeating – pitfalls and mistakes that stopped your financial growth.
Investing Requires Attention
Successful financial investment requires attention and the ability to adapt. Keep a close eye on financial, local and global news, and how events can impact your funds. While we often hear how negative news can send the stock market into temporary tailspins, paying mind to current events also can expose new opportunities to get ahead of the game.