You can start investing in less than 30 days.
It is important that you learn how to start investing.
You might need to invest in education. The Very good starting point is to buy books that will educate you. One of the best books to read that will get your mind in the right state for that is Napoleon Hill’s book ‘Think and grow rich’
You will also need to start attending investing seminars to understand the topic more. On the beginning of your investing journey, it can be confusing. It’s obvious that for most of us when we first start to invest we might not have enough money to invest.
When it comes to investing goals have to be set and in spite of any limitations you might have like not having enough time can be easily overcome by finding the right strategy that will fit you.
The first step to investing is to overcome your fear.
In order to overcome this fear, we need to understand how money works.
The purpose of all paper money is to buy goods with it. As prices of goods rise people need more money to buy them. If you wonder where the money comes from you realize that money can be created out of thin air, in fact, banks can create money.
When banks lent out to much money and the money can’t be paid back things crash. As an example, we have the housing crash in 2009.
The value of a stock can go high because of the debt that is being created, but when there is too much of debt created the price cannot rise anymore and the crash will start. These crashes mean that the price will go back down to a fair value and that is a good time to buy. In reality what happens is that because of human psychology when the market crashes people will run away and sell off their investments often at a lower price than they bought it.
As we all know the stock market can go up or down, these price movements are also known as market cycles. Prices might rise for the long term due to inflation while savings will keep losing value. Market crashes can easily scare people away or cause them to lose their money.
In the market, nothing goes up forever and nothing goes down forever.
Understanding this basic market principle will help in overcoming the fear to invest in the market.
To start investing we need to educate ourselves and invest with a proven strategy.
To be able to invest we need to make sure we are able to save money first and here is the rule for your money:
Don’t save what is left after spending. Spend what is left after saving.
The money that you save should be put straight away into your investments. By doing that you will let your investments grow at an exponential rate and this process is also called compound interest.
We already know how money works and why it’s important to invest.
Let’s move onto the strategy that I mentioned earlier. We really want to use only the best and safest strategy in investing.
The truth is that there are hundreds of investing strategies, but you only need one strategy that will work for you so you can reap consistent rewards. The important thing in investing is that you enjoy it and do it consistently.
We start looking for the right strategy from examining our preferences, establish goals and limitations and create the strategy around it.
First how much time you will be able to spend a week, a month, a year on your investments. There exist such strategies when only one hour is required to be spent on it in the whole year.
Second important thing is to answer the question: how long I want to hold my investment for.
The third is to set goals, how much money do you want to have and when. Here you need to think if you want to have lots of money when you retire or do you prefer monthly income for years to come.
That’s all in this article about investing. Please do not forget to share it with friends using social share buttons available below the post, thank you and happy investing.
Believe in yourself.