Basic Investing Tips
Smart investing allows you to maximize your savings. Here are some tips to help you get started:
- Start investing in small amounts. As you become comfortable with the investment process, increase the amount you invest.
- Identify financial goals you would like to achieve with your investments and develop a plan to help achieve these goals.
- Many investments are not liquid. That means, they can’t be readily converted into cash or there is a financial penalty to do so. You should keep some of your savings in a form, such as a Savings Account, that you can readily access in an emergency.
- Keep your investments diversified. In other words, don’t put all your eggs in one basket. Most investors have their funds in some combination of higher risk and lower risk investments. Determine what level of risk is appropriate for you. This is generally based on such factors as your age and personal tolerance for risk.
- Make sure that you are comfortable with the investments that you have made. Only take on the amount of risk that you are comfortable with.
- Monitor your investments regularly. While it’s generally best to hold on to investments over the long term rather than constantly shift money around trying to beat the market, changing market conditions will sometimes dictate the need to reconsider an investment.