Like most things in the money-world the earlier you start investing the better. Investing wisely can help lead you to a life of financial freedom. By choosing the right investments those big-ticket items can be easier to obtain and you can swan off into the sunset. The dream, right?
How To Start Investing
There are three key things that you need to know before you begin
Time: Investing takes time. Think about this a long-term commitment. Experts recommend an absolute minimum of five years.
Spread: Don’t put all your eggs in one basket. It’s important to look around at your options. Make sure you know the difference between stocks and bonds, and decide for you which route is best.
Cost: Think about how much it will cost you. Commissions and fees can start to add up. On top of that you’ll have taxes to pay. Be clear on what you can put in and what it’ll cost you. It’s also good to think about the amount of time you want to spend on it and where you want to put your money.
Once you have these things down, you’ll need to start thinking about where you want to invest.
Depending on how much you have to invest, there are plenty of options out there. There are more and more female-led investment platforms opening up to encourage women to invest such as Scalable Capital and Ellevest– both are fantastic. At Ellevest for example, you input your age, salary, career, how much you want to invest and so on and it calculates a forecasted return for you and shows you where the best industries/companies are to invest.
Brexit has a large influence over investments at the moment, as has the new US election but I wouldn’t let this stop you from investing – just be smart by spreading your money globally and across different risk levels. There are a number of books online that are targeted specifically at female investors. I’d recommend getting yourself a few books on the topic before you invest anywhere and subscribing to websites such as www.thenewsavvy.com. – Emma Flaherty, MoneyGirl
With so many options, it may seem a little overwhelming. Emma’s advice is to start with some research. Think carefully about what you want and what you want to get out of it. Don’t rush into anything that you don’t understand. At the end of the day this is your money. Make sure you are comfortable with your choice and are aware of the risks, as well as the rewards.
Massive thanks to Emma from all of us for giving us her insights. If you enjoyed this, check out her top tips for starting a budget, or setting up an emergency fund. And if you’ve any other tips or tricks that have worked for you we’d love to hear them!
Next week we’ll be looking at how to get your foot on the property ladder x