To the beginner, investing can seem incredibly overwhelming and confusing. It may seem that there is a lot to learn and that it may be hard to start investing without a ton of knowledge and money. But this is untrue, as once you master the basics, investing can truly change your financial life. Here are five easy tips that will help you start investing.
1. Use the Cookie Jar Method
In order to start investing your money, you have to start saving your money. You may not know where to start, so we recommend going slow and steady and using the cookie jar method. All this means is that you just put a set amount of money away per week in a cookie jar or piggy bank, and do not touch it.
It’s recommended to put away this money in cash, instead of savings from your credit card or debit card, so you have something tangible that you can touch and watch grow week over week. So head to the nearest ATM! The idea is that not only will you start to build a small nest egg of savings, but you can start getting into the habit of living on less than you are used to. Once you have a good chunk of change saved, use that for your beginning investments.
2. Go the Secure Route
Cryptocurrency, or crypto, is a type of payment that is used online in exchange for goods and services. You have to pay to use these online currencies, but the appeal to them is that they are incredibly secure, as they work with a technology known as blockchain, instead of a financial institution like a bank. Think of cryptocurrency as something like a token you use in an arcade, where you would pay for the use upfront.
Some companies, such as CrptoVantage, even offer an option for a Crypto credit card to help you manage your funds and keep everything in one place. What is even better is that these Gemini credit cards provide crypto rewards like cashback rewards, so you will be rewarded for even just using the crypto card. Plus, it is always best to have digital assets, as cryptocurrency is often seen as the investment of the future.
3. Consider Investments in Non-Traditional Places
There are multiple investment opportunities out there, you just have to know where to look! It’s a great idea to invest in gold, as this asset, ounce by ounce is secure, stable, and can deliver a great bang for your buck. However, you will want to make sure that the ounces of gold you invest in has been mined in a sustainable way, for example, Alamos Gold in Turkey.
Alamos Gold is in the Republic of Turkey and utilizes environmentally friendly gold extraction processes, not only to boost output but to maintain a great relationship with the environment and landscape around the mine. So when you invest in Alamos Gold Inc, you’ll have peace of mind that the environment won’t be put at risk. The same thing applies to popular types of assets. We all know cryptocurrencies are very popular, but only a handful is driving investors crazy. Think out of the box and see what the chances are of investing in alternative options. For instance, you can buy Ripple with low trading fees to make a secure profit in the future. Click here for more information.
4. Focus on Your Savings Percentage
It can be disheartening to watch your investments and bank account decline, but it is necessary to see your investments as something only to look at in the long run. Instead of focusing on your losses, focus on your savings percentage month over month.
Stock market declines are natural and common, but your portfolio’s performance is a better indicator of whether or not your investments are performing up to snuff. You’ll want to continually look to maintain and/or increase your savings rate for the best success as a beginner investor.
5. Set Goals
You never want to invest your money without setting goals first. So before you get started, take out a pen and paper and brainstorm some of the most important goals for you to meet. For example, a short-term goal could be saving up for the international trip of your dreams, or simply signing up for your first credit card to spend on groceries and to take advantage of cashback perks. Or, a long-term goal can be building a strong retirement savings account so you can retire by 50 years old. The best part of investing is that you can make it work for you and your specific needs.
With these investment tips and tricks in place, you’ll be on your way to creating a fantastic portfolio.