Having a savings plan is good, but that alone will not grow your wealth. In fact, the purpose of savings is to have some money to take care of emergencies or a loss of regular income either through sickness or loss of a job. It doesn’t do anything to grow your wealth.
The interest rates from a savings account are comparatively smaller compared to what you could make from your investments. Savings accounts and fixed-deposit accounts even though they have limited risks, they make you little money. In order to build your wealth, you need to invest your savings into plan that will reap you the most benefits.
The following investment tips for beginners will help you our as you start on your journey.
Organize your finances
Before you even choose your investment options, you should know the status of your finances. You need to put down the number of loans you are currently servicing and the repayment period left for each of them.
This is particularly important if your investment requires a monthly remittance. You don’t want to pump all your money into an investment and fail to meet your financial obligations which may lead to a negative credit rating. An investment may take some time before you start seeing returns from it but you will still have bills to take care of.
Consult
Talk to a professional about your plans, preferably a financial advisor or your banker. They are better placed to analyze the markets and investment climate for you and give you a list of options that would be suitable for your given financial circumstances. A financial expert will you the best investment advice than your friends and family.
They will advise you on what the risks and possible returns are for a given investment. Even then, the ultimate decision on where to invest your money should rest with you.
Carry out your due diligence
Research and verify the authenticity of the people and companies you are dealing with. Request for their professionalism. You’d rather take your time before settling on what looks like a good investment than have your money and dreams go up in smoke over a shady deal.
Do an online search of the company. Look for news reports about the company and their clients at places like States Chronicle News. Where applicable, check their past clients and the kind of services they offered them. If you notice anything suspicious, stop your dealings with them immediately. Hopefully, you wouldn’t have lost money by then.
Doing your due diligence also means saying no to get-rich-quick schemes which will scam you of your money instead of increasing your wealth.
If you engage in business with anyone, always insist on receipts and proper documentation. Even if you are friends with the person.
Start now
You don’t need thousands of dollars in savings to start investing. If you are waiting until you have enough money before you invest then you are doing yourself a great disservice, and chance are you might not even invest at all. Start with what you have. Start small.
There are investments like government bonds and stock trading that doesn’t require a massive capital. Talk to your financial advisor on what options are available to you.
