Even though I have my Finance MBA, I will admit that I am no expert when it comes to investing. There are many things for me to learn still, but that is not stopping me from investing.
Here is my advice to start investing now:
Start investing now.
I always cringe whenever I hear someone say that they haven’t started investing yet.
Or, that they are waiting until they are older to invest because they think that they have plenty of time.
What exactly are you waiting for? You can probably spare a little bit of money out of each of your paychecks to put towards your wedding. Even if you can only afford $100 a month to invest, that is much better than investing $0 each month. Every little bit counts, so start now!
Whether you start reading investing books, testing out stock analysis tools such as with Stocks in Value, or if you look for a professional to help you out with your investments, it is always best to know what you are doing. We are talking about money here, and if you don’t know what different investment lingo actually means, then you may be costing yourself money.
Figure out your investment strategy.
Everyone invests their money differently. Some like to invest in real estate and they seek out passive income by renting out real estate. Others look for dividend paying stocks, others seek out non-dividend paying stocks, and so on. The list really goes on and on.
You should do your research about the positives and negatives of each form of investment.
Also, will you invest in just a few stocks, or will you be very diversified with your investments? Some like to really understand and be an expert of their investments, whereas others like to be as diversified as they can so that they can protect themselves.
Remember that there is risk when investing in the stock market.
The stock market is never 100% absolute. I know of someone who took out a $20,000 loan and put it all into a stock that he thought would succeed, and it ended up tanking and he lost almost all of the money that he got a loan for.
The loan had a high interest rate and a small loan term, which meant that he owed a lot of money each month towards the loan.
When did you start investing? What do you regret?
Flickr image by Andreas Poike