Start Small and Make it A Habit
Guess what? Investing is not only for the wealthy; it’s for those who want to become wealthy. What’s important is making a start.
These days, it’s possible to start investing with relatively small regular amounts. If you can kick off your nest egg with an initial lump sum, so much the better.
Investing is a long-term game, with the prospect of decent returns. From small beginnings, over time you can build up a significant nest egg.
Have A Purpose
Investing with purpose means getting clear on 3 things:
- What you want to achieve by investing;
- When you want to achieve it; and
- How much risk you’re prepared to take.
Research shows that people who set a clear financial goal succeed in saving more (around €620 per year more, according to one source).
Clear expensive debt first
This one is simple. Expensive debt is any debt apart from a mortgage. Above all, it’s credit card debt (which isn’t cleared every month) and personal loans.
No investment offers a guaranteed return that exceeds the cost of expensive debt. So pay down your expensive debts before investing your money.
Decide how you’ll invest
Some people prefer the thrill of the chase involved in investing directly into shares, or alternative assets such as forestry, or gold.
Before you put your money into these asset classes, rather than investment funds, stop and ask yourself a question; Are you truly investing, or are you speculating? Speculation can be fun… but it’s not the right for your life savings.
Seek Advice First
Lastly, if you’re a beginner investor, seriously consider using a service that provides financial advice, rather than a going it alone.