Most people would rather save than invest as it’s safer and easier to do. This is because there is a general acceptance of saving as the go-to financial move as opposed to Investing.
When you talk about investing you’d hear.
However, investing can be as easy as saving and it is an excellent way to grow your wealth and secure your financial future. Unfortunately, a lot of people think that investing is just for individuals who are wealthy or have a lot of extra cash.
The truth is that even those with limited resources can begin investing. If you are wondering how you can get started as a novice without big bucks.
Here are some pointers:
1: Educate yourself
It’s crucial to have a thorough understanding of how investing operates before you begin. Reading books, going to seminars, and enrolling in online courses are good places to start. You may study the fundamentals of investing from a number of online and offline sites.
2: Research
Do your research on available investment opportunities. Whatever country you reside in, there are opportunities to invest in substantial amounts, but you have to do proper research. But you must remember that If it’s too good to be true it’s most likely a scam.
Have you thought about Robo-advisors: these are investment platforms that make trades on an investor’s behalf using survey responses and algorithms. They are a choice for newcomers as they feature cheap minimum investments and costs at a considerable risk.
3: Save to Invest
As we have established that you don’t have money laying around. Saving is an ideal way to start the journey of investing. You can open a savings term or special savings account with a specific goal in mind and the objective of reaching that goal, then invest the money. Irrespective of how little.
4: Set Financial Goals
Setting your financial goals is perhaps the most important step . You have to know why you are investing as it will dictate how you make your moves. Are you investing to increase your wealth, save for retirement, or create an emergency fund? You may choose investments more wisely if you are aware of your objectives.
5: Start Small and Diversify
It’s crucial to start small when you’re just getting started. You don’t have to start out with a 1 million naira investment. With as little as 100,000 you can get started. Fractional shares, which let you buy stocks with little money, are offered by many online brokers.
Starting modestly will enable you to more easily diversify, which is the process of reducing your risk by making investments across a range of assets and sectors.
6: Monitor your investments
It’s important to keep an eye on your investments on a frequent basis and to alter them as needed. Observe the performance of your portfolio and base your decisions on your investing objective.
Remember that investing entails risks, so never invest more money than you can afford to lose. Likewise, if you’re uncertain about a particular investment opportunity, seek professional advice before you begin
Simply saving money might be easier but Investment remains a great way to truly grow wealth and avoid the diminishing effect of sticking your money in savings accounts with low-interest rates or Kolos which only help devalue your money over time.