Each person faces different financial decisions based on their personal goals and needs. Having the safety net of your savings makes financial sense no matter your current situation. But at some point, you should start reallocating some of your saved money to investing if you really want to maximize your earning potential.
Investing, whether it's in your personal business, someone else's business or the financial market is important for your financial future, but it doesn't have to be complicated.
Here are a few questions you must answer and make a planned decision on before deciding to enter the world of investing.
1. Why Am I Investing ? (what's the plan).
Obviously, The ultimate purpose of investing is to make more money, but everyone's needs are different, you must decide what you want to get out of investing and how long are you willing to commit till you achieve your aims.
Things to consider are : Your age, financial position, personal circumstances, income, safety of capital, profits, losses and so on.
2. What Should I Invest in ?
Investing is all about purchasing assets that you anticipate will grow in value overtime. there are different investment vehicles each with different risk and reward potentials like, Stocks, bonds, mutual funds, real estate, futures Cryptocurrencies and so on.
3. How Much Is Enough To Start Investing ?
One of the biggest misconception nowadays about investing is the idea that you need thousands of dollars before you can get started. This is very wrong and untrue. If you're a beginner or new Investor , Starting small and early is definitely better than not starting at-all,
If you're working a low paying job right now, you may not have much money leftover to invest, But as time goes on, you could save up, or use the dollar cost averaging technique. Some investing apps let you start with as low as $5 dollars.
4. What's My Risk Tolerance Level?
All investments have some level of risk. the market moves up and down. it's volatile. you must understand this and if you can't afford to lose your money, you probably are not ready to invest and you shouldn't.
You must know your risk tolerance level and gauge how comfortable you are with risks.
5. How Do I Start Investing ?
The financial market is one of the most efficient and reliable ways investors have used to create and build wealth for decades now. If you're new to investing, we're here to help and guide you with the right strategies, tools, platforms and apps that will make this journey easy for you with low risk, we will guide you on this path.
There are plenty of avenues to get into the markets like:
For more information on how to start and which platforms are the best and offer the most return on investment(ROI) you can send us a message on whatever questions you have. We'll be glad to Assist.