ARE YOU PREPARED TO START INVESTING FOR YOUR FUTURE?

Are you ready to learn how to invest and make your first investment? If your answer is Yes. Congratulations, this is huge, and you are taking the first step by learning.

You can grow your wealth by investing. There are significant benefits to investing as well as risk. Now investing isn’t about jumping into any deal that you feel like with your money. 

If you’re on the edge and feel like hey, now is the time that I want to invest. Then I’m happy for you, and I would like to prepare you for taking the initial investment. 

Debt

Do you have high-interest debt that needs to be eliminated? Do you have any high consumer debt like credit cards or personal loans that are burning holes in your pockets preventing you from having extra money? You need to get control of your cash. Pay off any consumer debt like credit cards to free up your disposable money to invest. Please don’t use your emergency funds, bill money, or anything that you might need to invest with. It is important to use this money for investment purposes only.

Emergency Savings Account

Do you have an emergency savings account? Does this account have enough funds to assist you for the next couple of months to possibly a year if needed? Before you decide to take any extra money you make and invest it into assets, you want to make sure you have something stashed aside for emergencies. Do you know that most people can’t handle if their car breaks down, something happens in their home, or they get sick? They have to go get a loan or use their credit card to cover the bill, which sets them back. This is the reason why I’m telling you to need an emergency saving account before you start to invest.

What Kind Of Investment You Want To Invest In

There are several investment options you have the opportunity to invest in, such as starting your own business, stocks, bonds, real estate, or commodities. This is only to name a few, and please don’t be subjected to  investments only.

Is there something you’re really good at doing, have a passion for, can’t seem to stop talking about it, or maybe you just want to become an owner. You can start your own business. With owning your own business, you have to be willing to take risks and work your butt off for several years or months to see a return on your money. With owning a business, you have control to determine success. Your commitment to success plays a massive role in determining your business’s success.

Real estate is owning property, land, building, etc. The upside to real estate is that it produces cash flow, appreciation, and tax benefits over time, making the asset increase value. 

Commodities include gold, silver, gas, oil, rice, wood, etc. When choosing the right type of commodity you want to invest in,  it is essential to depend on the quantum of investment. You need to have an expectation for the investment and know how much you are willing to risk.

Stock is when a company is selling ownership of their company for cash. Stock can be classified as common stock and preferred stock depending on the rights the investor chooses to have.

Bonds are issued by a company in return for cash, and the company who issues the bond owes the buyer of the bond. The company that issues the bond pays interest and/or repay the principal amount of the bond on a later agreed upon date.

Investment Plan

Start researching investment strategies and choose the one that best suits you. Buys and holding forever, growth investing, and value investing to name a few.

Buying and holding strategy are when you believe that a company, franchise,  or property, will perform well over many years. By doing this, you’re willing to stay the course because you see the long-term potential.  Once you evaluate the company, the initial work is done, holding investments can save time you would have spent trading, and often beats the returns of more-active trading strategies.

Growth investing involves buying shares of emerging companies that appear poised to grow at an above-average pace. Companies like this often offer a unique product or service that competitors can’t easily duplicate. While growth stocks are far from a sure thing, their allure is that they can grow in value much faster than established stocks if the underlying business takes off.

Value investing is bargain shopping for an investment. By purchasing what they believe to be undervalued stocks with strong long-term prospects, value investors aim to reap the rewards when the companies achieve their true potential in the years ahead. Value investing usually requires a pretty active hand, someone willing to watch the market and news for clues on which stocks are undervalued at any given time.

When you invest your money, you are not guaranteed to have this money available to you whenever you like. The value of your payment will fluctuate; it can go up or down depending on the market. Also, investing involves risk; you can lose a percentage or all of your money. So you need to develop risk management and tolerance. The money is not guaranteed; it will always be there.

What are your goals when you’re investing your money? How much money do you want to make? Do you have a time frame of when you want to make this money? What kind of assets is going to produce rewards for you?

Start Investing

Get educated about investing to understand the risk involved, so you can invest with confidence and knowledge to lessen your risk factor. 

There is a ton of free information to learn about investing. We will be breaking down each concept within upcoming posts, so stay tuned to keep learning. Also, there are books, podcasts, and unofficial mentors you can learn from as well. Lastly, you can really learn from experience, but you need to build it up, so take some action, and once you feel as if you know enough, start investing. 

The hardest thing there is to do is start. I encourage you to start!! Yes, you are going to make some mistakes and think you’re a failure, but you continue to learn and get better. 

You can also shorten the curve by choosing to use our strategy calls. Get your 1 on 1 session to learn more about investing and developing a personalized plan for you to get started and build your future. 

Please comment if you have any tips for beginners before they start investing or question.