While many people’s finances are kind of volatile due to the current economy, there’s always a need for people to save for the future when things are even less certain than they are now. But while saving your money will keep it safe, investing your money can help you grow that capital into something even larger for your future use.
If you haven’t invested much, or at all, in the past, here are three investing tips that will help out beginner investors.
Learn How You Feel About Risk
One of the first things you need to consider when you’re contemplating investing is to learn how you feel about risk with regards to your money.
According to Coryanne Hicks, a contributor to U.S. News and World Report, you should really only invest your money in ways that you feel comfortable. If you’re very risk-averse, you may want to stay away from investing your money in stocks, especially now when the market has been going crazy. So while you want to try to grow your money as quickly as you can, you also want to not have your investment choices keep you up at night or cause you to develop an ulcer.
Generally, it’s a good idea to start off with some low risk investments, like bonds or a CD, and then consider taking on some more risky maneuvers as you get more comfortable investing your money. Then, as you’re getting closer to wanting to use the money you’ve invested, it’s wise to take on less risky investment strategies again to protect everything that you’ve built.
Start With Your 401(k)
For getting your toes wet with investing, David Weliver, a contributor to Money Under 30, recommends that you should start with investing in the 401(k) that you likely have access to through your employer.
If your employer does offer a 401(k), you may want to start off with just investing 1% at first. Then, as you stay with your company and have an increase in your pay over time, you can also increase how much you’re contributing to this retirement plan. That way, you won’t even miss the money and you won’t have to be making constant decisions about how to invest your money.
Find The Right Help
The world of investing can be very intimidating. But luckily, there are people who know how to handle this world and help others find success there. So if you’re really wanting to learn and be more hands-on with your investing, Adam Shell, a contributor to USA Today, suggests that you find a professional who can help you. Whether it’s a financial planner, an accountant, or an advisor, speaking with someone who understands investments and can point you on the right path can be extremely valuable to you.
If you’re wanting to start investing your money but aren’t sure about where or how to get going, consider using the tips mentioned above to help you on your way.