How To Start Investing

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One of the greatest ways to build long term wealth is investing. The rich stay rich because they create money. No that doesn’t mean they have a sweatshop filled with children creating counterfeit nickels and dimes for them. It means they know how to make their money work for them instead of working for money. I learned this from a book called Rich Dad Poor Dad which literally change my entire perspective on money and life. Getting started investing can be tough when you have no way of knowing how to access the market. That’s why i’m here. I have been investing for about 3 years now and have my fair share of tips and tools that can help you get started on the right foot.

Don’t Invest What You Don’t Have

I have seen so many people, including myself fall into the trap of investing money that they didn’t have to invest. It happens. Especially to people who are excited about building wealth and catching the new wave of something big, but realistically, you have to be honest with what you can afford to invest. Investing is risky. Trying to invest in something when you have nothing is a formula for failure.

Know Your Comfort Level

Before you think about investing, you have to be honest with yourself on how much you’re comfortable risking. Knowing your risk level is what makes you a winner. For me, I’m a bit of a risk taker. When prices drop, instead of me screaming sale sale sale, because I’m worried about cutting my losses, I scream buy buy buy!  I know the history of the market and have enough confidence in the company that I invested in that I know it will turn back. The market getting low also means that you have a lower price to buy even more stock in the company. This isn’t the amount of risk everyone is willing to take though. So be honest with yourself and what you can and can’t handle. Some companies are more volatile than others. Knowing where you stand will be a decisive factor on where you invest.

Choose The Right Tool For You

Finding the sword that feels right in your hands is important because you again want to have a certain amount of comfort level when trading. My first time trading I was using Fidelity, which is a great company to trade and build with, but it wasn’t right for me as a beginner and felt so complicated. Not everyone is the same, so take the time to find a company you really feel great using. These are some great beginner friendly services that you may find lighten the load of learning to invest.

Robinhood

Robinhood is a great free tool to start investing. There is no monthly fee and its free to trade, you only pay the price of the stocks. Hard to go wrong there. The app is very user friendly and is my go to tool for my investing strategy. The only drawback is that not all stocks (International Stocks) is available.

Stash

Another great started tool, Stash is offered completely on mobile and has no access point for the computer. So being able to check your investments on your desktop is a big thing to you, then this may not be the choice for you. Stash is a great set it and forget it app where you can set automatic payments and build a investment portfolio around their curated stock portfolios such as “Rolling With Buffet” or “Conservative Mix.”

Acorns

I’m sure if you’ve been around Think Cents then you have heard of this wonderful gem. Acorns is another avenue for people who don’t want to choose specifically what to invest in and just want a way to save and automate their money. I do still use acorns conservatively even though I do most of my trading now with Robinhood.

 

Play Smart and Play Long

Different people have different strategies for investing into the stock market. Some people make their money trading penny stocks, others play for the long-term by investing in stocks for dividends. Personally I’m more of the second. Though investing is fun, the amount of time needed to watch, buy and sell penny stocks to make huge profits is a pain. I personally enjoy receiving a check of dividends into my account from my stocks every few months. It gives me a nice chunk of change which I can then reinvest into the company and earn more. Remember, we’re building for the long run here. So patience is key. If you plan to play the penny stock or day trade game then do it intelligently and be sure to research, research and research.

Doing something blindly because you saw a guy turn $1000 into $10,000 make it look easy doesn’t mean you can just throw money at the market and it will spit more back out at you. Stay true to yourself in what you believe to be a fair and worthwhile investment. Invest in companies you can trust your money with. I have made countless mistakes of selling a stock to soon. Also buying a stock in its dying times and had to realize, mistakes happen. There is no guaranteed easy money and sometimes you just have to be okay with that.

 

If you really enjoy investing or anything to do with business and finances, I run a nice blog called Think Cents that’s packed with ideas on making more money, creating a Crush It mentality and building long-term wealth for your future. Good Luck fellow investor. Remember to not just play the market, but to try and stay ahead of it as well.

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Jonathan Tyler

Entrepreneur | Thinker | Cool Shit Doer at Think Cents
A natural thinker of life, business, and art, Jonathan was born gritty at heart. That grit burns through his blog Think Cents as a desire to fight for financial independence. Seeing how little success traditional work life brings, he's seeking to achieve building his wealth in the more unconventional ways.
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Posted by Jonathan Tyler

A natural thinker of life, business, and art, Jonathan was born gritty at heart. That grit burns through his blog Think Cents as a desire to fight for financial independence. Seeing how little success traditional work life brings, he's seeking to achieve building his wealth in the more unconventional ways.

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