Between your full-time job, your side hustle, and your top-notch budgeting skills, you work hard to make (and keep) your money. Now that you’ve mastered how to manage your day-to-day finances, it’s time to take it to the next level.
It’s time to start using your money to make more money.
No matter how financially savvy you are, investing can be intimidating—but it doesn’t have to be. Read on for four things to know before investing your money.
#1: Investing Isn’t A “One-Size-Fits-All” Endeavor
There’s no right or wrong way to invest money in the market. What makes sense for your goals might be completely wrong for someone else’s. Let’s take a look at a few basic investment strategies.
The right strategy for you depends on what your long-term financial goals are. This brings us to our next point…
#2: You’re in This for the Long-Haul
Investing is different than just putting money into a savings account because, in order to reap the benefits of smart investment strategies, you need to give it time. Plus, depending on where you put your money, you might be subject to fees if you withdraw too early. As you start to map out your investment strategy, ask yourself:
#3: Getting Help Pays Off (Literally)
It’s possible to start investing on your own, but we don’t usually recommend it.
Investment professionals not only help you make better choices, but they’ll also help you understand the investment process. They can answer questions like what is stock or what are bonds, but they’re also there to ask you questions like, where do you want to be in ten years?
Although getting help from a professional is an investment in and of itself, it helps to view the relationship as a professional partnership (rather than as a service you’re hiring). The more money you make, the more money they make, meaning they also have a stake in the game.
#4: Investing is a Risk
Investing is a wonderful way to achieve your financial goals, but there are no guaranteed outcomes. If you want to put your money in the market, you need to be comfortable with some level of uncertainty.
Market fluctuations, economic downturns, and recessions are all possibilities you need to take into consideration. That said, your financial advisor can help you pick a portfolio that offers a risk-to-reward ratio you’re comfortable with.
Get Ready for the Rewards
Remember, at the end of the day investing is all about letting your money work for you. There’s nothing more rewarding than knowing your money is making you more money—even if taking the initial plunge is scary. Don’t worry, by following the advice above, you’re already one step ahead of the investment game. We can’t wait to see the results!