You have probably heard of the term investing, and from people that do it, can actually make quite a bit of money back. But if you haven’t a clue where to start, where do you start? You can also think that you have to have a lot of money to invest, but that isn’t the case at all. You can invest spare cash that you have, using as much or as little as you want.
One of the key things to managing your money and even to build wealth, is to keep track of money. Track spending, and develop good habits. When you get in the habit of putting money aside each month, it is going to help you on your way to a better financial future.
If this sounds like something that you want to be part of, then here are some ways that ‘beginners’ can start to invest, and get in good habits with their money.
If you have an employer and you’re not part of their retirement or pension plan, then that is something that you need to be a part of, sooner rather than later. It does take some money out of our paycheck each month, but they will match what you pay in. So when it comes the time to draw on that money, you will have double the amount waiting there for you. If you’re not employed or self-employed, then there are other pension plans to get signed up with. Now is the time to start.
If you are a homeowner, then you will have a good idea about the buying and selling process. Even if you have rented before or are renting, you will know about the ins and outs of renting too. So if you wanted to make an investment (that you can afford, of course), then it can be a good idea to look into property. It doesn’t even have to be buy-to-let investment either; you could look into commercial real estate investing for businesses. Like tenants in a residential home, you could have tenants from a business, and there will always be demand.
Low-Investment Mutual Funds
If you don’t know what mutual funds are, then that is the first thing to learn about. Mutual funds are investment securities that can help you to invest in stocks and bonds quite quickly. Because of that, it can make them a good thing for a beginner investor. Some funds may require a certain amount of money to invest, but some will accept smaller amounts, such as £50. So just check what the requirements are before you go ahead.
Savings Accounts and ISAs
If you have your money just sat in your current account, then it won’t be doing much for you. Which is why it can be a good idea to look into savings accounts or ISAs instead. These will offer a better return than your current account, so you’ll be making money, just by having your money in them. It can be a good way to save, as the money is out of sight (and hopefully, out of mind). Just shop around for the best interest rates, to make sure that it is going to be worth it.
If you’re interested in further developing your (and others) money management, you could look into studying and taking the exam for CMA certification. It could be the start of a future career.
What tips do you have for investing money?