Watching the news these days can quickly make you feel depressed, as the economy looks uncertain, the housing market is anything but normal, and the list could go on and on. In such a financial environment, it might seem like now is not the best time to start investing, but you’ll be surprised to hear that it’s pretty much the opposite. 

You can start getting control of your finances and save for a better future, where you feel more comfortable and have no worries about where you will be getting the money you need to achieve your dreams. Investing is really one of the best things to do (regardless of your age) if you want to boost your financial well-being. And although it may seem like rocket science to start, we’re here to tell you that getting in the game is pretty straightforward. Whether you want to buy bitcoin online or invest in real estate, there are a few simple steps to start working on your goals and enjoy substantial returns. Check out the tips below! 

Define your investing goals

Getting out of debt always starts with a “why” – you likely have a specific goal that motivates you to kick debt to the curb and makes the finish line clear in the race to financial freedom. Well, the same applies to investing, and starting this journey on the right foot is all about defining your goals. So, take the time to consider what is your reason for investing – do you want to build your retirement or maybe pay for your children’s college? Or perhaps you’re looking to save money for another significant milestone in your life, like buying a house. Whatever your goal, gaining clarity on why you want to invest your hard-earned cash is essential before you can move on to the following step, which is just as important in this journey. 

Decide how much money you’re willing to invest

Your personal savings rate will have a major impact on your retirement savings, as well as your short-term savings. In fact, research shows that this factor is one of the most essential when it comes to succeeding with your retirement savings. When it comes to getting out of debt and building wealth, experts recommend allocating 15% of your gross income to retirement. Because there will be other goals, you will likely have to set money aside for while investing at the same time, such as paying off your home early. Investing 15% of your income annually for a period of 30 years will result in millions of dollars due to compound growth, which is pretty neat when you think about it. 

Pick your investment type

Different types of investments are available, so it’s imperative to take the time to consider which one is more suitable for you. For instance, you can choose traditional investments such as stocks and bonds or go for cryptocurrencies like Bitcoin, depending on your risk tolerance and financial goals. For consistent growth, it’s a good idea to opt for mutual funds, which represent investments that pool cash from a group of individuals to purchase stocks in various companies. Compared to index funds and ETFs, mutual funds are managed by an investment professional who decides how to invest the fund’s money. Furthermore, thousands of mutual funds are available, meaning that you can select funds with a long track record of outperforming other funds in the same category. But ultimately, it’s up to you to decide which investment type suits your investment vision and goals in the long run. So do your research and consider your personal goals instead of just picking an investment based on what someone else says about it.

Have an investment strategy in place

An investment strategy refers to principles that will guide you toward your investment goals, allowing you to formulate a portfolio that will bring you great returns, and it usually depends on factors like age, capital, goals, and risk tolerance. Investment strategies can be: 

- Conservative, which is suitable for investors who aren’t risk-averse and seek stable returns;

- Aggressive, involving higher risk and including options like stocks and junk bonds, generating maximum returns. 

An important principle of investing is spreading your money across different asset types to mitigate risks while taking advantage of the opportunities that different investment types offer. There are different ways to approach portfolio diversification, such as investing in different asset classes like equities, cash equivalents, and real assets like property. It’s recommended to include at least two different asset classes, and diversifying within asset classes. For instance, you could choose to put your money into energy stocks, if that’s a field of your interest, or in healthcare, technology, and so on. 

Keep learning as much as you can about investing

Finally, in your investing journey, it’s essential to continue learning as much as possible from different resources, like online articles, books, social media experts, and YouTube videos, to name a few. These resources will help you create your investing philosophy and plan a strategy to set you up for success. And, of course, don’t hesitate to seek expert help, as they will personalize your journey based on your own needs and educate you on the best choices you can make. The best financial advisor will always act in your best interest, so be sure to look for a trustworthy professional. Ask about their recommendations and check their payment plan so you won’t be surprised to see there are hidden fees. A lot of questions will likely arise on your investing journey, and having a financial expert by your side can be an invaluable resource. 

The bottom line

While it may feel daunting to start investing, you shouldn’t let the current economic context or the scary news prevent you from getting on board. One of the greatest things about investing is that you don’t need a lot of money to open an account. As long as you have at least 3-6 months of expenses saved and pay off your debt, nothing can stop you from investing! Remember to take things one step at a time and if needed, don’t hesitate to ask for professional help, as that will make your investing journey a lot easier.