At some point or another, you have probably considered dabbling in the world of investing. Sure, it might have been nothing more than a passing thought that was soon forgotten. But who among us could honestly resist the idea of being able to place our money in an investment and watch it grow? If the money would only be sitting in your bank account anyway, then it might as well be working for you.
Previously, investing was a mysterious and esoteric world that was out of bounds to most of us. Investing used to require a reasonable understanding of the financial world, it was not the open market that it is today. The good news for the entrepreneurs of today is that anyone can now invest, anywhere, and anytime.
If you are toying with the idea of entering the investment world, then this guide is for you. We understand how tempting it can be to dive straight in, especially as many services advertise on the basis of how quickly you can start investing after you sign up. Before you jump in though, take the time to make sure you understand what you’re getting into.
Set Your Limits
Before you progress down this road too far and start committing money, you need to establish exactly how much money you can afford to invest. The more accurate the picture you have of your own finances, the easier it will be for you to plan ahead and manage them effectively.
It is also wise to establish how much money you have to play around with so that you can avoid losing more than you can afford. With investments, you should always be prepared to never see the money again; you can’t always tell things are going to turn bad.
Stocks and Shares
These are the investment tools that you are most likely to have heard of. But what exactly are stocks and shares? You can basically think of them as representing a small part of a business. If you own a share, then you own a tiny fraction of the business. If you owned 50% of the shares, you would own half of the business. If you own more than 50%, then you have a controlling share of the business and can make decisions.
The value of a stock or share in a business will reflect how much value the market places on the business. A business that inspires confidence will command a higher value. Throughout the day, the value of a business is constantly changing. Stocks and shares can increase or decrease in value in response to market needs.
ETFs and Mutual Funds
Once you’ve got your head around stocks and shares, take a look at this guide to ETF vs mutual fund investments.Both a mutual fund and an exchange-traded fund – or ETF – is similar to an individual stock or share. The difference is that, while these are single investment options with a single value, they are also portfolios that contain a variety of different assets.
Value Your Time
You’ve heard the old adage about time being money, well this isn’t just a motivational saying. You need to start viewing your time as a commodity. It is something that you only have a limited amount of and which other people want you to use for their own benefit. If people want you to use your time for their benefit then clearly they should pay you for it.
But if you yourself do not value your time then how can you ask anyone else to? You need to show yourself, and potential customers and clients, that your time is valuable. If they can see that you value your time then they know that they would do well to not waste it. Do not afraid to be assertive, but you must also extend the other people you meet the same courtesy of respecting the value of their time.
When you are just beginning your investment career, there will be a whole bunch of new terminology and concepts that you need to get your head around.Make sure you carefully research your options before spending any money. As well as preparing yourself with a financial dictionary, you will also want to start taking steps to project the right image. The way you dress, how you talk to people, how you introduce yourself, all of these things and many more will affect other’s perceptions of you.
Be confident, but not overly cocky. Make sure that you show other people