They don’t each invest in school, so self-education is the key to long-term financial success. What can beginners do to get started on the path to wealth right now?
Here are some thoughts from top business leaders, so you can live beyond the paycheck and start making your money work for you.
Beginners’ Basics
We all start somewhere, so learn the fundamentals of investing first before getting into the more complex topics.
“It’s not about how much money you make each year. It’s about how much money you keep, how hard it works for you, and keeping it for many generations.” – Robert Kiyosaki, Businessman and Author
“Set up investment goals! Tossing small investments in here and there can be helpful for the beginning stages of your investment portfolio, however, it is bright to take those investments and get attainable goals with them. You will be able to invest further and wide if you have a grip on realistic expectations of these investments.” – Chris Vaughn, Co-Founder of Saucey
“Robo-advisors are great for people who want to invest without having to play an active role in the process. These services manage your investments using computer algorithms so all you have to do is keep an eye on your account. However, if you actually want to learn how to invest, there are services that offer educational resources.” – Carrie Derocher, CMO of TextSanity
“A great way to begin investing is to get a goal for what you will be using your capital gain for. If you have a specific time frame for your goal, it may be smarter to invest in higher risk investments. Investments with a longer time horizon will allow you to change up your portfolio and invest in a more savvy way.” – Danielle Calabrese, COO of De La Calle
Classic Investment Strategies
Don’t go for the flashy investment methods that fizzle out and leave you broke. Reliable strategies will always be preferable for building wealth.
“Target-date mutual funds make saving for retirement extremely easy by automatically investing according to your estimated retirement year. These funds hold a combination of stocks and bonds. In managing your money, it will hold mostly stocks if your retirement is far away so you receive a bigger return on your investment in the long run. As you get closer to retirement the funds take less risk.” – Haim Medine, Co-Founder of Mark Henry Jewelry
“An easy investment strategy is to put money into your 401(K). Since most plans don’t require an investment minimum, you can choose your desired amount. However, if your employer matches contributions, then put in at least that amount to reap a bigger return on your investment. When you elect to contribute, your money goes directly to your 401(K) without having to take any further action.” – Rym Selmi, Founder of MiiRO
“If you’re new to the investment game and looking for a low-risk opportunity that’s affordable, then consider investing in index funds. They track a market index, which includes stocks from a portion of the market, and mirror the companies and performance of that market. Fees are typically low since they are based on your investment amount.” – Michael Scanlon, CMO and Co-Founder of Roo Skincare
Keep it Cool
Investing can be stressful, so learn to manage your emotions and stay focused on the ultimate goal ahead.
“There’s a common paradox I see constantly. A lot of really smart people are terrible investors because they’ve got bad temperaments. To succeed as an investor, you need to keep irrational emotions at bay and stay logical.” – Charlie Munger, Billionaire Investor and Vice-Chairman of Berkshire Hathaway
“If markets dip or start crashing, the last thing you want to do is freak out. Have a plan in place so that you can make rational decisions despite all the chaos happening around you. The smartest investors on earth always wait for prices to drop before buying up cheap stocks – don’t forget that!” – Ashwin Sokke, Co-Founder of WOW Skin Science
“Adopt a detached, zen-like mindset for investing, and it will serve you well when everyone else starts panicking. The market fluctuates constantly, and nobody can predict it. The best thing you can do is stay composed and stick to your original game plan. Emotion is never a reliable compass.” – Kelli Lane, CMO of Genexa
“Always remember that investment decline is normal! As our economy fluctuates, so will your investments. You will have the opportunity to continue your current investments in the future, but while investments are down, use this opportunity to invest at lower rates and watch all of your investments grow together!” – Michael Waxman, CEO and Co-Founder of Sundays for Dogs
Just Get Started
The best time to plant a tree was 20 years ago, as they say. Don’t wait a moment longer to get started on your investment journey.
“There are many different reasons people do not begin investing, media coverage tends to be the biggest factor. If the fluctuation of the stock market holds you back from investing now, you will never get into investing. The media coverage on stock market changes is very different from the strategies investors will use to perpetuate their investments.” – Joe Parenteau, Co-Founder of Fable
“A great way to get started with investing is to download the app Robinhood on your phone. With Robinhood you can trade stocks free of charge and get started with any amount of money. It is a great way to learn the markets and dip your toes into the world of stock investing.” – Chris Gadek, Head of Growth at AdQuick
“My biggest and most important tip for investing is to start now! It doesn’t matter that you are investing small amounts at first, so long as you are taking the time to invest! This barrier is typically the reason why people never invest or wait too long to begin investing. Do not wait for the ‘perfect time,’ just start with what you know and continually add to it- you will see your investments grow as you learn more and more about investing.” – Tirzah Shirai, CEO and Founder of Blink Bar
“Beginning your investment journey can be a tough decision to make. The most prevalent limitation to investing is the ultimate risk. If investment risk is high on your list as a barrier, try investing in less risky investments. A great tip is to invest larger amounts in a smaller portfolio of investments rather than smaller investments in many different companies. Remember, you always have the opportunity to move investments around!” – Brittney Dolin, CEO of Pocketbook Agency
It has never been easier to start investing and improving your financial situation for the long term. What are you waiting for?
