Monday, April 8, 2013

Investing Tips

Concerned about investing or how to invest?  Here are a few tips that we should all follow for investing.

  1. Make sure to start investing after you have your emergency fund in place and have get your financial house in order by paying off your consumer debt. 
  2. Only invest in things that you understand.  You need to understand the risks and what you are investing in. 
  3. Start as soon as possible and invest regularly.  Small chucks over time will really add up with the power of compound interest.  Allow time to work for you and be a consistant saver. 
  4. Make sure to spread your money out between multiple types of investments.  You need to diversify so that a negative slip in one area doesn't hurt all of your investments. 
  5. Pick what is right for your circumstances and your goals and stick with it for the longterm unless your circumstances change. 
  6. Don't pay attention to the ups and down of the market.  Try not to listen to the news reports of how bad or great things are today.  You are investing for the long term future and you only lose when you quit when the market is down. 
  7. Do you best to shop around to keep the cost down.  Compare fees and other expenses.  You cannot predict the future in returns but you can make sure to do your research to make the best purchase possible and save money in upfront costs. 
What other tips do you have for being a smart investor?  

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