Wednesday, 6 March 2019

Investing For Beginners - How To Get Started

Investing For Beginners - How To Get Started

In this article, I'm going to talk to you a little bit about investing for a beginner, how to get started, what's the best way to get started and what advice do I have for people who are brand new

To give you an idea I got started when I was 18 years old at the time I didn't know anything about investing but I was reading these self-help books and I read some books on finances and I just learned some basics about investing and I realized the most important thing is to start as early as possible because the earlier that you have to start investing then the more beneficial it's going to be later in your life

Because then you could take advantage of compounding, Warren Buffett all these investment gurus all talk about the power of compounding

I learn some basic things about that and so I knew at 18 years old I needed to get started and of course the earlier that you start then the sooner you can make mistakes, you can learn from those mistakes, you have higher risk tolerance because a mistake that you might make is not going to be as costly as opposed to if you're in your 30s, 40s, 50s or 60s where you got to be a little bit more cautious and more conservative in your investment strategy

What I'm going to share with you can definitely help you for just getting started, it can take time of course but I'm going to show you some basic principle that is really important for you to understand

1. Pay Yourself First

That is the first thing you are going to learn in any investment book or financial book out there because you need money to invest, you need money that you can put aside to save or invest or whatever it's, and if you don't have that, if you can't take a percentage of what you make and put that aside, then there's no hope for you to be able to grow your net worth and be able to make more money


  • Whatever amount of money that you're making right now whether it's $1,000 a month $2,000, $5,000 a month, or more, you got to make a decision the most important financial decision of your life which is that you're going to take a percentage of what you make and I recommend 10 percent at minimum

Take 10% and you're going to put that aside and you're going to put it in a saving account or an investment account or some other account that you're not going to touch

Now you might be saying well I don't have the money to do this I live month-to-month, well, you've to manage your money, you've to manage your finances and you've to pay attention to it on a weekly and a monthly basis because you should never be in a position where you're living months to month, that's a horrible position to be in, that position means that you're never going to be able to get ahead in your life


  • That means whatever income that you're making is going right toward your expenses, and for most people, the best thing to do is to lower your expenses, cut down your current living expenses.

The reason why they say pay yourself first is that you're supposed to pay yourself that money before anything else before you pay your bills, your rent or anything else


2. Have Emergency Fund Of Savings

If you don't have that then you're going to be in trouble, if your expenses every month is $20,000 a month and by the way you've to know what those numbers are, you've to know exactly what you're spending every month and what you're making every month, if you can't tell me those numbers you're going to be in financial trouble


If it's $20,000 a month that's your expenses then you need to put aside at least $6,000 to $7,000 in savings as an emergency in case something happens to your job, in case disability happens, something happens to your business

Who knows what can happen but you got to have that emergency fund, very important

3. Invest In Yourself

Once you have that emergency fund of 3 to 6 months, you're going to have an extra positive cash flow, now, what do you do with that money, how do you invest it? Well, you got to explore the different investments that exist


The number one investments that you can make according to Warren Buffett the multi-billionaire investors, the best investment you can make is not in real estate, not in stocks, not in your business, it's in yourself
That's the number one investment that you can make, what I mean by that is investing in your knowledge. Developing skills, your confidence, your beliefs, self-development, learning about finances, about business, about marketing, Read books, go to a seminar, going to the course and products, video training and audio training, etc,

You've to invest in yourself, all the most successful people in the world all understand this and the truth is is that if you could invest in yourself that's what's going to bring you the highest return out of anything else 

because if you continue down the path you are and you don't invest in yourself then you're going to continue getting what you've always got and investing in yourself you're going to be able to learn the skills and the confidence, the habit etc that can help you make more money and make better decisions in your life which are going to make you a lot more money


4. Your Own Business

Another most important thing that I think you're going to get the best return from beside yourself is your own business. A business is something that has a high potential for a reward because you are in control of the business, in fact, it is directly related to you the more you improve yourself the more your business will succeed and always want to bet on yourself more than anyone else
Investing money in your business whether it's an online business or whatever it is, that has a higher potential of growth and it's going to be a lot less risky because you have more control over it as well.
Read: How To Start Investing in Your 30s


When investing the best advice that I have is to invest long-term, have the long-term mentality, don't be caught up in the whole get-rich mentality because that's what's going to lead you to make a lot of bad decisions and you're going to get into trouble

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