The top wealthiest 10% of Americans own a staggering 89% of all US stocks. Don’t let the richest people gain more wealth while you continue to struggle paycheck to paycheck. You, too, can become financially independent by investing.
Follow this guide for getting started with investing and start growing your wealth.
How to Invest in Stocks
Don’t wait! The best advice you can get when investing is to not wait. Time is your biggest asset when it comes to investing. The longer your money stays invested, the more time it has to compound upon itself and exponentially grow.
There will be ups and downs throughout your investment lifetime. However, this is normal. In the long run, your investment should grow.
Decide How Much
You don’t have to have a lot of money to start investing. That’s the whole point; to take a small amount of money and turn it into a lot of money.
An easy goal to get started with is a company retirement plan. If your employer offers contribution matching, this is free money that you could potentially take advantage of. Set a goal for yourself to maximize your company’s match percentage.
For other types of investing, you can start with a hundred, a few hundred, or a thousand dollars.
Open the Right Accounts
Investment accounts are different from checking and savings accounts. You need to open the right type of account for the investments you want to have. For example, there are 401(k) retirement accounts through your employer or traditional and Roth IRAs that are also retirements accounts, but you open them independently.
Other investment strategies may require a brokerage, bond, ETF, or mutual fund account.
Do Your Research
There are more options than just investing in stocks. These are shares offered by companies for you to purchase. You can buy and hold onto them for years or actively buy and sell daily.
A mutual fund could be a good alternative if you aren’t ready for this. These are profiles that combine a mix of stocks and bonds for you. Professionals manage the profile and make the investment decisions for you.
Bonds are like a loan that you give to a company or the government. They hold the money for an agreed number of years and then repay it at the end plus an agreed-upon interest rate.
Create Your Strategy
Once you understand each investment option’s risk level and earning ability, you are ready to create your strategy. Then you can put your plan into action on websites like bytefederal.com. Always stick to your strategy by using data and logic to make your investment decisions.
Don’t Be Afraid of Getting Started With Investing
Getting started with investing can seem scary and overwhelming, but it doesn’t have to be. Start by deciding your risk tolerance and how much you have available to invest. Then you can do your research and create your investment strategy.
Check out our other finance articles for more helpful guidance on maximizing your wealth.