How to Start Investing

If 2021 has taught the world anything, it’s that the internet and its users have a massive amount of power to sway the value of a stock or company. However, 2021 crazy episodes are an exception and not the rule. Playing around with investing can be fun if you’re throwing a single dollar at a meme stock, but anything beyond that can have irreparable financial consequences. Investing should be done with care, calculation, and research. However, most don’t know where or when to start, which is why we have put this short guide together to help you along the right road for investing.

When to start Investing

Contrary to what might be currently happening on the internet, you should only start investing when you are in the right situation to do so. This means making sure that you have enough money to cover monthly, essential expenses and also enough money stashed away in an emergency fund. You should also make sure your debts are under control. It makes little sense to start investing in a stock that might offer 3% returns every year if your credit balance is greater and charging you 5% interest on it. In this case, you would be losing money. Only invest when it is safe for you to do so. Don’t jump in with both feet thinking you’ll make tens of thousands of dollars on the next meme stock, because for every winner, there are hundreds of losers.

Conducting Research

While there are countless apps out there that have made trading and investing as easy as clicking several buttons over the space of a minute, that doesn’t mean you should invest in everything. If you have a friend or coworker that has more experience in the world of investing, ask for their help on what would be good initial investments for you. Should you invest in stocks, bonds, or a completely different type of investment? Should you choose bonds and stocks that are extremely volatile and can make or break your money? Or should you choose safe bonds and stocks that have slow but positive growth for 20 years? Conducting research will help determine what type of investor you want to be. It will also give your investment the best chance at making money.

Keep Your Eye on the Prize of Investing

The journey of investing has many steps to it, which is why traditionally, those who have money to lose are the ones investing. However, investing safely is possible with some hard work and dedication. Think of it as saving up for a vacation. When planning for a trip, many people set aside a certain amount of money each month and contribute it toward the trip. This money usually doesn’t come out of savings, retirement funds, or essential spending. The vacation money that is saved up is usually money that is sacrificed during the month for a greater, more enjoyable prize during the summer. Try thinking of investment money in the same way. You might not have $5,000 to randomly throw at stocks, but you probably didn’t have $5,000 to spend out of the blue when you took that last vacation either. Investing is a game of work and often, slow progress. However, picking the right investments that you are comfortable with can yield amazing results come retirement. Contrary to what might be out there on the internet, meme stocks will not save everyone, and many people are going to lose a lot of money on them.


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