Investing is actually pretty simple; you’re basically putting your
money to work for you so that you don’t have to take a second job when
you graduate. Most people think you have to be super rich to invest.
This is not true, you do need some assets, but even students have
something they can do that will launch their investment career. How?
Follow the steps below:
1.
Examine Your Finances
Jumping into investing without first examining your finances is like
jumping into the deep end of the pool without knowing how to swim. Know
how much you have, this includes physical cash, assets, such as
belongings and your savings. Luckily, investing doesn’t require a
significant sum to start.
2.
Establish Your Investment Goals
Why are you investing? Sounds like a simple enough question but many
people can’t answer it because they haven’t fully articulated what they
want their money to do for them. Are you putting money aside towards
rent? A car? Retirement? Building assets? The reason you are investing
will determine what kind of asset classes you should invest in.For you,
it might be that you don’t wnat to have money troubles when you
graduate.
3. Learn the Basics
You don’t need to be a financial expert to invest, but you do need to
learn some basic terminology so that you are better equipped to make
informed decisions. Learn the differences between stocks,
bonds, mutual funds and
certificates of deposit (CDs). Read a lot of books, make sure the books have to do with your own environment.
4.
Pick an Investment Firm
After you have saved up some money and have a clearer idea of what
your investment goals are, you need to speak to a professional. The
reality is no matter how skilled you are in your business or line of
work you may not have the skill or patience required to pick the best
investments. Commercial banks offer some great savings products but an
investment firm gives you a wider range of investment options that
include stocks, bonds, real estate and other investment opportunities.
pick the right one.
5.
Keep Emotions At Bay
Don’t let fear or greed limit your returns
or inflate your losses. Expect short-term fluctuations in your overall
portfolio value. As a long-term investor, these short-term movements
should not cause panic. Greed can lead an investor to hold on to a
position too long in the hope of an even higher price – even if it
falls. So always listen to your broker or stock adviser with a clear
head.
