If you’ve never invested before, you might have the perception that owning stocks and other assets is just for the wealthy. But this couldn’t be further from the truth.
Investing is for everyone! You can use investing as a way to save money for your future, but you need to manage your expectations going into the creation of your portfolio.
If you’re considering starting your portfolio to take control of your financial future, you should do some research before you spend any money. Here are some basic tips you need to know before you start investing.
Investing isn’t just for wealthy people! You might have a mental image of a man in a designer suit yelling “Buy! Sell!” into his cellphone when you think of an investor. However, an investor can be anyone with a smartphone and a few dollars to spare.
Fee-free brokerage apps offer everyone a chance to invest in the stock market. Apps like Robinhood and WeBull allow newcomers to dip their toes into the finance industry to potentially grow their portfolios.
Once you sign up for one of these app-based brokerage services, you can start trading and get yourself a slice of the pie.
Generally speaking, no investment is completely safe. Market conditions can always shift and push companies’ values down.
However, most investors agree that newcomers should focus on investing in trusted, long-running companies with a proven track record for profitability. That includes companies like Disney, Coca-Cola, and other well-known brands.
Often, newcomers rely on index-based investing to keep their portfolios well-balanced. Indexes are baskets of stocks that track specific industries or that fund managers believe will perform consistently over time.
When you start investing, you might feel like you’re not doing enough to grow your portfolio. Maybe you’re worried that you’re not putting enough money into your investments, or that you’re not investing consistently enough. Don’t let these doubts stop you from investing when you can!
It’s better to sink a few dollars into your portfolio here and there than ignore investing altogether because you think you don’t make enough money to get started. Ideally, you should do this consistently, but even investing a few dollars every couple of weeks is a good start. The stock market as a whole had trended higher consistently over the past century, so now is as good a time as any to invest!