3 Questions You Must Ask Yourself If You Want To Start Investing With No Experience
You're young and although you don't understand much about investments and finances, you just know one thing: you want to invest your money.
At first, knowing how to start investing can seem very complicated. There are hundreds of expressions and slang that are difficult to understand.
Many make the same mistakes at first, but not because they don't know enough, but because they know exactly what they want.
You don't have to be a finance expert to know where or how to invest. However, there are 3 things you need to know for sure before taking any steps.
It doesn't matter if you plan to buy property, invest in the stock market, or crypto. If you don't know where you want to go, you will hardly get anywhere.
These are 3 questions to ask yourself before you start investing your money.
1. What type of investor are you?
Investing is not a sport that everyone plays the same. Depending on your investor profile, different strategies will be more or less useful.
There are more aggressive and risky investors, some of whom are not afraid of losing in the short term and bet in less explored places.
Then there are the conservative investors. They normally invest a portion of their savings and expect stability and profits in the medium and long term.
Then there's the middle. Moderate investors who are looking for medium risks but are not afraid to take a bold step every now and then.
Each of these types invests its money differently. The type you are depends on the origin of your capital, the length of time you are willing to wait, and the risk you are willing to take. You can do various online tests and find out in minutes.
2. How much money are you going to invest?
Many times we know that we want to invest but we don't know exactly how much money
It is important that you carefully study your finances and determine how much you can invest. You don't invest your rent money.
Today you can make investments of up to a few dollars. But depending on the amount, the nature of the investment changes.
Be careful that you are not investing money that you don't really have, or aiming too high and not meeting unrealistic expectations.
3. What are your goals with the investment?
This is essential before starting.
Many believe that investing means putting your money in a machine, waiting, and then getting that money back plus profit.
The answer to this question cannot be "to make money."
Do you want to invest to increase your capital? Looking to increase your savings for a retirement plan? Do you plan to pay off loans or debts?
the strategy will go according to the objectives. So you have to know exactly what you want to achieve first.
Investing may seem like a tough and hostile world at first, but it's a matter of learning and being patient.
You don't have to be the Wolf of Wall Street to understand this, but you must be clear about certain things. This way, when you start, the path will look clearer.
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