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The Beginner’s Guide to Investing
Lily Tabanera
Published on

It’s easy and tempting to splurge on a new gadget or wardrobe. Once you have enough money, you may even want to go on an overseas vacation. However, these things only give you instant gratificationa “living in the moment” kind of feeling.

However, there will come a time in your life when you have to start thinking about your future. While you weigh your options, you might want to consider investing instead of just keeping your hard-earned cash in a bank.

New to the world of investing? We’ve prepared a quick guide to help you out:

1. Know what investing is.

Investing is not the same as saving. Saving money is when you put away money in the bank or is another safe place, where it is readily accessible. Investing is putting your money to work in one or more types of investment vehicles in the hopes of growing your money over time.

2. Accept that there are risks.

Yes, you will be risking your money. And although you can’t eliminate the risk completely, you can be careful by investing wisely. For example, investing on long-term accounts is safer than quick-fix stock trading by people who really don’t understand what they’re doing. Getting professional financial advice would be good, too.

3. Know your investment goal.

You can’t enter the investment world blindly. Figure out what you want to use the money for. Whether it’s for buying a house or a car, future retirement, or starting a new business, investing should be for a long-term goal. Knowing your goals will help you choose what type of investment you really need.

4. Decide on an investment.

Once you decide to invest, you’ll have a lot of choices laid out in front of you. Mutual funds, individual stocks, real estate, and crowdfunding are just some of them. The stock market allows you to buy shares of companies while crowdfunding allows you to invest in real estate. Read up on these investments carefully before diving in.

5. Prepare a strategy and stick to it.

Tailor your investment strategy in accordance with your end goal. Don’t be too emotional and risky. Stick to a timeframe on when you should check on your investment and try to have fun with the whole process! 

Are you ready to start investing? Share your thoughts and tag us on Facebook and Instagram @iamclaireph.