We all have sat there and wondered what it would take to get started making money with the money we have made. It is the age-old wish of most of modern culture, to become rich and not have to worry about money anymore.
And anyone paying attention knows that the only real way to build wealth over time is to invest. So how do you get started from zero? First, you should manage to save enough money to be sure you can actually afford the investment, our target should be relatively small so one thousand dollars is a great starting number. Once you have saved enough and are ready to start let’s look at a few tips and strategies to get started.
You should pick your investments
You are just now getting started investing, that means you have a lot to learn, you should make sure that you learn as much as you can because this journey is not just about making returns financially but the more you learn and the more understanding you gain about markets and how to be successful the easier it is to earn in the future.
Tip: There are many investment platforms that will allow you to get started trading on the NYSE and beyond with ease, E-trade is a good low-cost provider to choose if you don’t already have an account elsewhere.
Start a Roth IRA
Can someone say Tax breaks? It is simple, not only is an IRA a better way to invest long term because it prevents you from being exposed to excess taxes, the Roth allows you to get a Tax break on the money you withdraw from your account, which is the exact opposite of a normal IRA. A normal account gives you Tax breaks when you deposit into the account.
Tip: You can easily be intimidated by the complexity of some of these investment vehicles. If you are you should use your Bank as a way to help get you started. Most major banks have the ability to easily help you get the ball rolling.
Diversification is Key
No matter how small of a sum you are putting into a company or a type of industry, you should not let it deter you from doing so. It will be hard but you should try to make sure you spread your investment over many types of industries to help make sure you are insulated from a single company or investment from wrecking your portfolio.
Tip: Focus on 3 or for major industries that you know well, Energy, Technology, Transportation etc. Pick companies that you are familiar with that you like and go from there.