4 Tips For Learning About Investing When You’re Just Starting Out

Written By Mary Beth Eastman
Last updated June 27, 2018

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Simple. Thrifty. Living.

Investing is one of the most popular ways for people to grow and protect their wealth. If you don’t have much experience with investing, though, you might feel timid about putting your hard-earned money on the line. Follow these four tips for learning about investing when you’re just starting out so you can discover ways to grow your wealth while protecting yourself from loss.

Several companies have developed apps that make investing as simple as possible. In some cases, you don’t even have to think about your investments because everything happens automatically. Some of the most common robo advisors and investment apps include:

  • Betterment
  • Wealthfront
  • Acorn

Make sure you read reviews about these and other apps before you decide whether you want to use one. For example, our review of Betterment vs. Wealthfront will give you a good idea of the pros and cons of each.

It’s important for investors to set goals. Without goals, you won’t know whether you’re on the right path to funding your retirement, buying a larger home, saving for a vacation or reaching a different milestone in your life.

If you plan to use your investments to pay for retirement, then you will need to know things like:

  • What age you plan to retire
  • How much money you will need during your retirement
  • What type of lifestyle you plan to enjoy during your retirement

Investing doesn’t necessarily mean that you spend money purchasing a company’s stock. There are several investment vehicles and strategies that you might want to use. Some popular options include:

All investments come with some level of risk. That’s the nature of investing. If you pay close attention to how your investments perform, then you’ll likely have moments of joy and dread.

Don’t let the market’s fluctuations affect your emotions too much. The stock market takes dips, but most investors earn money over the long-term. If you let fluctuations upset you, then you could make decisions that prevent you from growing your wealth.

Do your best to separate your intelligence and emotions. As long as you make smart choices, your investments will probably help you earn more money.

Investing may seem scary, but it’s an important part of preparing for the future. As you gain more experience, you’ll start to feel comfortable making investment decisions. Of course, it never hurts to talk to a professional for advice.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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