So you want to get into investing and you don’t know how, right? Before you get on wrong paths let me tell you couple of things, just as a friendly blogger who is also investing one or two dimes, here and there.
Couple of months ago I was also wondering how to get started investing. On which side should I invest ? What should invest in? How much should I invest ? And similar questions, I’ve been through these questions 3-4 months ago. So I hope that I can help you a little bit.
The first step here is to decide how you want to invest. You have to decide if you want to invest in stocks, crypto value, funds, employer’s 401(k) etc. Begin with investing in one field, and then when you learn more about what you are doing and when you have more money than you can add a different field into your portfolio.
At the beginning pick one field, try to learn if it is something for you. If it isn’t then change the field and if it is something for you then learn even more about that field and make sure that you take good decisions when you come to investing. And whenever you feel comfortable with going into different fields like investing in funds or crypto values then go for it
The second step is to choose which website you want to invest onto. There are a lots of good and not so good investing websites and apps which you can use. Of course do your own research on what websites or apps suits you best and which you want to stick with. I personally use eToro and I’ve been using it since day 1 of my investing career. The investing websites I will recommend to you are Robinhood and eToro.
Be aware of the issues that every investing website have cons to it, which different investing websites doesn’t have. Every investing website is somehow different from other investing websites so it is very important for you to do your own research of these investing platforms, because you need to choose a investing platform which suits you and not me or someone else you might know or not know.
The Third step is to learn what investing terms or shortcuts means. Beginning with learning about 401k, P/E ratio, EPS, beta, bear market, bull market, dividend, fiduciary and inflation.
There are many more investing terms or shortcuts which will be every useful or even required to know if you want to invest and not lose money as many people does. I know that it sounds super complained but try to focus on single step or word at a time and it will be much easier.
Learning about investing is really time consuming and it sort of never stops because there are always something new to learn about investing as time unfolds.
The fourth step learn the difference between stocks and funds. At the beginning I actually struggled with knowing the difference between these two.
Funds lets you buy small pieces of many different stocks in only one transaction. This means that you buy many different stocks from different companies when you put your cash in funds. Of course there are many different funds to choose between, and again to your research if you choose funds instead of single stocks
Individual stocks are very small single pieces of companies you decide to buy.
The fifth step is to decide how often you want to invest. For you to make a profit of investing you have to invest on regular bases no matter if you chose if you want to invest weekly, monthly or yearly.
Choose how often you want to invest and just stick with it. I would recommend to invest monthly simple because of your income and avoiding to spend too much or too less on investing.
The sixth step is to decide how much you want to invest on the regular bases. Set a goal on how much you are willing to invest to the regular bases you have made in the fifth step and stick with it. Of course you can decrease or increase the amount you want to invest. Just decide an amount which you will be comfortable with investing.
You can invest 100 bucks, 500 buck or more. However I would recommend to invest around 10 % of your monthly income, but in the end it is up to you on how much you want to invest.
The seventh step is to decide where you want to invest in. Which funds do you want to invest in? Which stocks you want to invest in ?
Start with investing in one field and then increase it to different fields. Just to be sure if one filed crashes you will always have your investments in different fields.
And if you know where you want to invest in, use google and do a little research on these funds or companies you decided to invest in. Look at what they are doing with their money, look at their financial statements and look at how their funds / stocks are doing.
You can find my investing portfolio here