Investing Archives

Easy Ways To Start Investing

8266321242_c8550950a4_z Getting in to investing can be challenging at first, especially if you do have a little extra money, but not enough to hire a stock broker or a financial advisor. Many people will tell you that you DO need to have tens of thousands of extra dollars sitting around to start, but that couldn’t be further from the truth. In fact, it’s actually better to start small as you are learning. That way, if you truly make a mistake, the loss is small. It can be hard knowing where to start, and many websites just make it more confusing. That’s why I love this simple guide by Stacy at Six Dollar Family. Here’s her tips on how to get started on investing your money:

-Participate in your company’s 401K or IRA- if you’re not already doing this, you may be missing out on large contributions from your employer

-Invest your money into a Money Market account, which is basically a higher interest savings account

-Use an app to start learning how to invest small amounts in the stock market, like Acorns, Robinhood, or Stash.

Photo Credit: StockMonkeys.com

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Investing Tips For Newbies

by Kathy T.

2495538130_9f01ab1a01_z Investing is a great way to grow your money over time, but it can be scary for beginners to get started. Lots of advice I see is directed at people who are already wealthy, and advises them to start with a few thousand dollars and a professional stock broker. However, I’m here to tell you that you don’t need all that. Anyone who has a little extra money saved can start investing. Check out this article by Alexa at Single Moms Income for beginner tips:

-If your employer offers a 401(K), it is the simplest way to start investing and a great place to start

-Open a Roth IRA or Traditional IRA

-Start contributing a small amount each month, and slowly bump it up depending on what you can afford

-Check the accounts every few months, sit back, and watch your money grow

Photo Credit: Jaroslaw Pocztarski

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Investing for Beginners

by Kathy T.

I’ve always been somewhat of a gambler. I like playing the lottery, slot machines, and blackjack. Las Vegas is one of my favorite places in the world! The prospect of making easy, fast money is alluring to me- like it is to most people. Unfortunately, usually gambles like that don’t pay off, and you end up losing money (though, on my last trip to Vegas, I came out about $50 ahead!) Most people would be more interested in a surer thing. Ladies and gentlemen, welcome to the stock market. Of course, there are riskier investments with more return, but a smart, diversified portfolio will grow your money in the long run. If you are interested in getting into the stock market, you have a lot of research to do if you don’t want to go through a broker (who will take his own cut). This article by Gogirl Finance at Levo is a good place to start:

-Educate yourself about the relationship between risk and return. Stashing your cash under a mattress isn’t going to make it decrease, but it isn’t going to make it increase either.

-Just start doing. Often, the best way to learn is by doing. Have some extra money allocated for this purpose, and buy a few shares of your favorite company, or start using your 401(K).

-Sit back and let your money work for you. Even if you only earn 3 percent on your $500 investment, you’ll have $672 in ten years. That’s much more than you would’ve had if you left that in your checking account.

Photo Credit: Alberto Carrasco-Casado

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