1. UNDERSTAND YOUR RISK TOLERANCE
Risk tolerance refers to the level of risk an investor is willing to take. Those who are just starting out should try to invest in low-risk assets in order to minimize the risk of losing their money.
2. START EARLY
The sooner you begin investing, the more time your money has to grow. If you begin investing at a young age, you can maximize compound interest which can allow your money to grow faster over time.
3. GO FOR PASSIVE INVESTMENTS
If you’re a beginner, passive investments are generally a safer bet. Passive investments are those that don’t require you to actively manage them.
4. REMEMBER TO DIVERSIFY
Keep a balanced portfolio that includes a variety of assets because all investments are not created equal—some will do better than others.
5. STAY PATIENT
Investing is not a quick-fix solution to getting rich quick. It takes time to see results so don’t get discouraged if your investments don’t see returns immediately.
6. INVEST IN YOURSELF
Building skills that provide long-term value is a great way to invest in yourself. Learning how to manage your emotions for long-term success, learning financial literacy and saving for future expenses are all great ways to invest in yourself.