There are financial experts that will tell you that people need to follow a certain plan of action when they save money, but each person is different. Even those experts will, of course, acknowledge that, but they still tell you things like save up your emergency fund first and max out your IRA or 401k contributions before funding other investments. Finances are different and unique to each person. I do agree with saving up an emergency fund, but there are still different ways to look at this.
For example, I use an app that invests my money in ETF’s, and if I ever want to withdraw my money, I simply withdraw my money. It’s that simple, and if anything is needing immediate attention, I use a credit card. There are some financial experts that would tell most people not to even use a credit card. Do you have control over your finances? Some people aren’t able to stay in control of their credit, and I wouldn’t recommend those people using credit at all.
When it comes to financial investment advice, what you have to do is write down your goals and objectives. How old are you? What type of investments do you like? You need to have an open mind, but again, everyone has their preferences. Investment options are always changing, so that is another reason why there is no one-size-fits-all strategy.
A few years ago, I wouldn’t have been able to use an app like the one I use to invest my spare change. One of the most important things I’m going to tell you in this article regarding investment advice is to stay the course. Don’t go from investment to investment trying to make a quick buck. Analyze those goals you wrote down, think about what investments can get you there, get serious about putting money away for retirement and stay the course.
Mutual funds and exchange-traded funds are especially not investments for people to use for a few months and then cash out. To realize the best returns from the compounded interest and dividends, you need to stay invested for years and build. You can instead make an initial investment and leave it sitting there, but who has that kind of money laying around?
Some people do have quite a bit of money to invest, but you don’t have to in order to get started. The market is just right for the small investor these days, so don’t feel intimidated. You can simply sign up for some accounts without even depositing any money. Once you are familiar with the platform, you can then make a deposit and invest as little as five dollars at a time.
You do have to think about commissions, but my point is my investment advice is to simply get started and stay the course. That is what derails so many people. They don’t get started, and then when they do, they don’t get what they expect so they quit. You have to realize that investing is a long-term activity. If you’re wanting to make money quickly from throwing money at an investment and getting back a return, put your money into real estate and hope for the best.
If you want to be an investor, be a classy investor that puts his money in there and continues to build a nest egg. It’s about retirement, and it’s about getting ahead with your finances and not spending your money and switching it from account to account all the time. As for individual investment choices, you’ll win some and lose some, but if you invest wisely, overall you will have a nice rate of return.