At some point, everyone dabbles with the thought of getting involved in investing, in one form or another. Whether it’s buying stock, investing in an EFT, trying to flip houses in the real estate market, or simply putting money in a savings or CD account, there are options for every type of budget and lifestyle. How can you decide what the right option is for you? What are some tips on how to invest your money?
The very first thing you should do is review your financial goals and needs. What do you want from your investments? How old are you? Are you young enough to wait out the market(s)? Do you want to focus on your retirement? Make a list of your goals and your current financial situation. time frames obviously vary for different goals.
As you are reviewing everything, here are a few tips on how to invest your money:
• Decide if you want to have somebody help you manage your portfolio and investments, or if you want to do everything yourself. The DIY approach can be really difficult if you lack sufficient knowledge. At least have some sort of professional help with some of the more basic aspects of your investing. If you’re going to do some trading and not just focus on savings, you’ll need to open up a brokerage account. There are many discount ones online.
More Tips on How to Invest Your Money
• Give your money a time frame. Long-term investing is almost always recommended. You’ll need 5+ years to really start profiting from stocks, EFTs, etc. If you don’t want your money to be tied up for anymore than 5 years, then a CD account would be ideal. Even government bonds and treasury bonds usually require a minimum of 10 years.
• The natural resources sector has had both favorable and adverse conditions over the years. But in general, the renewable variety is considered to be the way of the future, so they deserve a mention on the top tips on how to invest your money. If you’re not very knowledgeable with the natural resources industry, it might be a good strategy to invest in mutual funds focused on the industry, and providing exposure to the sector.
• Real estate in developing countries is worth considering. Right now, the UK and Japan are both good countries to put your money in (especially in London and Tokyo). If you want to do some real estate investing in the US, there are always “crowdfunding” farming solutions, as long as you go through the right company.
These are just a few general guidelines and tips on how to invest your money. Learn more details about your options by reviewing the newsletter Capitalists Exploits.