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How to Start Your First Investment Plan

Investing doesn’t have to be a scary prospect. You’ve heard the horror stories of people losing hundreds of thousands of dollars. You do not want to make the same mistake. There are easy ways to invest your money without losing it.

My first investment was a 401K account through an employer. I had no idea how much money I needed for retirement. Nor did I understand the options for investing.

The best options are not the high-risk startup companies with a high chance of going bankrupt.

At the end of the day, you want to make money. You don’t care about the best stock market or mutual funds etc. You want your investment to work for you. Your checklist would include minimal loss, simple startup costs, and long-term gain.

I’m not an expert in the best stock markets to fund, but I do believe in investing in your future. When getting started, you should consider a couple of important factors with the help of Financegab.

What is Your Risk Tolerance?

For a long time, a risk is what stopped me from investing. I thought I had to risk money to make money. The truth is investments can provide long-term gains and minimal loss. You don’t have to risk your money to turn a profit, but you should determine how much risk you can tolerate. For risk-averse people like me, investing in your future retirement is guaranteed to work.

How Much Time Do You Have to Invest?

Time runs our lives. None of us have an unlimited supply. Some investments will require chunks of your time to manage the accounts, reallocate assets, and minimize taxes. While other investments have a minimal time requirement. Determine the kind of investor you are. If you’re like me, you need an investment that won’t take up your valuable time. Or you might enjoy dabbling in the stock market. Either way, determine the maximum time you’re willing to commit.

What are the Investment Costs?

Many people believe you must be a billionaire to invest. I used to believe it too. But there are a lot of ways you can invest with as little as 1000 dollars. We will discuss the accessible investments in the list below. And yes, many investments in the stock market or housing market require thousands of dollars, but many do not. Be smart about where you put your money. Consider the advantages and disadvantages of each investment.

Once you have answered each of these questions, you are ready to look at your investment options:

4 Easy Low-Risk Investments to Start

For a first-time investor, you want investments that are simple, low risk, and consider your busy life. Here are four ways you can invest with that in mind:

1. Pay Off Your Debt

The best investment you can make in your future is to stop losing money. You can’t invest without paying off your debts. If you have $20,000 in debt, an even lower interest of 12% can lose you thousands of dollars over time. Your net gain will turn into a loss. Get rid of the shadow hanging over you. This is the most important step to your financial future. Once you’ve paid your dues, consider the remaining options.

2. Money Market Account

A Money Market Account is an easy way to start investing. The account is a high-yield savings account with a better interest rate than banks. If you have savings sitting in your bank, put the money in a money market account. You will save more money with no risk. The average high-end interest is around 1.5% interest which is an improvement on the pitiful $0.01% interest bank accounts provide. Although the returns are minimal, a money market account is an easy way to gain back something from your hard-earned cash.

3. 401K Retirement Plan

Many people’s first investment is their 401K. If you have a full-time job, your employer has a 401K program. The before-tax program will gain you more money over time. The investment is easy to forget about. I checked my account recently to discover I had a significant sum saved. The money saved itself.

There is another benefit to a 401K account. Your employer will contribute money to match your investment based on a percentage of the return. To determine the best amount, you can use online calculation tools provided by your 401K provider or reach out to your local financial advisors.

4. Robo Advisors

Robo-advisors like Betterment and Wealth Front have taken the financial world by storm. Although they have not been tested over time, they are programmed by industry leaders to get you the best out of your investment. Do you want minimal research?  Do you care who manages the portfolio? If you said no to those questions, Robo Advisors are great and will support a diversified portfolio.

You’ve heard the phrase don’t put your eggs in one basket. A diverse portfolio guarantees you minimal loss and higher gains in the long term. Many young investors lose money because they don’t have diverse funds. A short-term loss in smart diverse funds can become a long-term gain.

Investments do not have to be a pain. You do not need to invest your time learning about mutual funds, stocks, and ETFs. Keeping up with the market is only one way to invest. Many of those people have years of experience and expertise.

The options presented are easy, efficient, and high-return investments. Although it may seem that money is only for the rich, you can invest in your financial future with small savings. You just need to choose the right investments for you.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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