Beginning to invest your money is a necessary skill in order to increase your net worth and build long-term wealth. Fortunately you don’t need a personal advisor or stock market broker on Wall Street to help invest your funds.
Historically, one of the frustrating things about investing has been the delay that it takes to get started. Fortunately today with technology and most modern banking companies, you can be up and running with a valid investment account in less than an hour. Or before before you finish reading this article.
By getting started on the right path, you can continue to build upon your financial goals.
Just Get Started
It really can’t be any more simple. In order to build a portfolio, you need to start. Contrary to popular belief, you don’t need thousands of dollars to be an investor. For example, with Acorns, you can create an account for $0. Acorns is a simple, but powerful application that helps invest your spare change. This goes to show how the power of starting small can really add up.
There are psychological benefits to starting the investing journey. Don’t feel discouraged if you begin with a small amount. There are powerful mechanisms at work! As a beginner or new comer to investing, you are building a habit to set aside money to be invested for future gains and other benefits. This is the first step of the journey. And with Acorns, you can invest every time you spend.
Dollar Cost Averaging (DCA)
Because it is hard to pick when the market may be up or down, it is best to continually buy.
Pay off Student Loans or Invest?
You can invest while you are simultaneously paying off student loans.
Starting an Emergency Savings Account
Before you start to invest on a larger scale, it is important to have an emergency savings account. This should be a sum of money that can cover your living expenses (bills, rent, car payment, etc.) for at least 3 to 6 months. Sometimes in life, the unexpected can happen. When that time comes, if it ever comes, you need to be prepared financially. Having an emergency fund set aside is a wise financial move to consider as you build your long-term plans. As a tip, consider contributing a percentage of your paycheck every time to your emergency fund.