Even if you have a good job and earn a lot of money, you need to invest to grow your money. In addition to having peace of mind, you will be able to secure your future if you invest wisely. If you are new to investing, there are a number of things you can do to guarantee your success.
For starters, you should start investing when you are still young. You will have more money to enjoy when you are older if you start investing when young. Moreover, if you invest when young, you will not have to invest a lot to enjoy the same yield. Say you want to retire at the age of 65 and you have a retirement goal of 500 000 pounds. Take the average rate of return to be 6%. If you start investing at 35 years of age, you will only be required to give 498 pounds each month for a period of 30 years to reach your goal.
On the hand, if you wait until you are older and start investing, say at the age of 55, you will have to contribute 3 051 pounds every month to reach your goal of 500 000 pounds. Clearly, you will contribute less if you invest when young plus the returns will be higher.
Another tip to succeed as a new investor is to educate yourself. Just because you want your money to grow does not mean you should invest blindly. Research and find out about different investment options and their rates of return. This will help you make an informed decision. There is a ton of information on investing on the Internet. You should also read financial magazines and watch financial programs on television for tips on how to invest. There are investments groups on the Internet that you can join to learn more about buying assets. Do not be afraid to talk to your co-workers and friends as they can give advice on how to invest especially if they are investors.
With so many investments options out there, you may not know which ones to invest in. For this reason, you should consult a financial adviser. He/she can give information on the different available investment opportunities. After assessing your needs, he/she will help you decide whether to invest in stocks, unit trusts or real estate. Make sure that you choose a financial adviser who is licensed and certified. Carry out a background check to ascertain that he does not have a tarnished reputation.
Though you want your money to grow, it is wise that you do not start at the deep end. Unless you want to lose all your money, start with simple investments so that you can learn how they work. As your portfolio grows so will your confidence. Consequently, you will be able to handle challenging investments.
To succeed as a new investor, you must not wait until you are too old to start investing. Learn everything you can about investing, consult a financial adviser and start with simple investment opportunities.