They say you can’t teach an old dog new tricks. But when it comes to humans, it’s easy to learn and understand certain concepts at any age. The concept of investing is one of these topics. Whether you’re newly retired or a new college graduate, consider the following tips for first-time investors if you’ve never paid much attention to investing or if you haven’t done it for some time.
— It’s a cliché, but time really is money.
Yes, you’ve probably heard this saying more than you want to, but stop and think about what it really means. The longer you wait to invest, the longer you are delaying the earning of potential income that you otherwise would not have flowing into your finances.
In addition, if you’ve invested money in the past but haven’t seen any positive results over time, there is no point in just sitting around and waiting for something good to happen. You have to take action and make a change in your investments.
— Simplicity is critical.
When you keep all of your investing moves simple and straightforward, you’ll have a much better chance of making more money over the long haul. Avoid moving your investments around. Don’t get involved in lots of trades on a regular basis if you’re using the stock market. Keep your money in reasonable investments, and be patient to see how well you’ll do over several months or even a few years. You won’t see significant progress overnight.
On another note, stop yourself from looking at your investments every single day. It’s tough to do this in our world of technology and instant gratification. You can probably pull your smartphone out of your pocket and pull up all of this data within seconds. Don’t do it too often. Remember that your financial standing is not going to change significantly within a short amount of time, and seeing a drop one day shouldn’t make you panic. Plus, avoid keeping track of meaningless or irrelevant investment information. It will simply cause you more unnecessary stress by complicating matters.
— Take the buy low/sell high concept to heart.
Buying low and selling high is a longstanding practice of most investors. So, you should adopt this strategy from the get-go if you’re new to the investing game. This can apply to many areas – the stock market, investing in a business, or almost any other idea of putting down money initially and seeing it grow over time. Never let greed get in the way, and putting down a smaller investment on something in the beginning will help reduce your risk if in fact you wind up losing some money in the end.
— Learn from experienced investors.
Like anything, it’s critical to get some guidance on investing if you’ve never done much of it in the past. Lean on the pros who’ve been around the block and know some of the tricks of the trade.
Explore all potential investing options that are available to you and make the most sense for your specific situation. Consider working with an investment advisor or financial planner. Tapping into an expert’s mind can be well worth any cost you spend to get this advice.
— Always keep the long-term picture in view.
Before you plunk down a nice chunk of change as an investment, you should be absolutely certain that you will be able to stay afloat without this money for the time being. To come out ahead in the investing process, it’s best to stick it out for a decent amount of time rather than being impatient. You’re generally not going to make much money – if any – by investing in short-term stocks that you’ll end up selling within a few months. You have to give it some time.
To put your finances on a path to prosperity, consider teaming up with the accounting experts at the accounting experts at Brown & Associates, C.P.A. Call (219) 696-4746 or check out brownandassociatescpa.com.