Hot People Invest: Here’s How to *Actually* Get Started
We know — investing is scary and nerve-racking and terrible…BUT it’s time. Your financial health is a real thing and if you’ve been putting it off like most of us, it’s time to take control of your future and start investing. Here at The Edge, we want to empower you to take the next step in your financial journey and start growing your wealth with the basics of investing.
What is investing?
Investing is when you buy financial assets. Think stocks, bonds, ETFs, real estate, a Birkin — essentially anything that has the potential to increase in value over time for a future profit. Similarly to how the value of a home fluctuates and generally increases in value overtime, the same happens with shares in the stock market (and other assets).
What are my options when investing?
There are four basic types of investments: stocks, bonds, ETFs and mutual funds. They all have pros and cons, and picking an investment type will require individual research based on your own goals. Experts recommend buying different types of assets to diversify your portfolio — a technique used to reduce your chances of overall loss by not putting all your eggs in one basket.
What are the steps I can take?
Step 1: Open an account with a provider.
And so it begins! The first step is to find a provider that you feel comfortable investing with. Here are some things to consider when looking for an investment platform.
Is it beginner-friendly, or is their interface known for being complex?
Are there fees associated with the account?
Are you looking for a platform with a reliable app?
This is the time to do some digging online. Ask friends or family what they use and ultimately feel the fear and open an account today that fits your needs.
Step 2: Transfer money into the account.
After setting up your account, you’ll need to fund it. You can set up automatic withdrawals from your bank account, but for now, we recommend linking your bank account and transferring a set amount of money into your new account to learn the ropes. Now, you’re ready to start buying shares (or ETFs, bonds, etc.)!
Step 3: Buy shares!
Now that you’ve opened an investment account and added funds, it’s time to buy. We recommend getting on the phone with an older sibling or parent to ask for advice, and you should do your own research before you buy shares (or bunds, ETFs, etc.). After purchasing your first share, you are in the game — and we couldn’t be prouder.
Remember the right time to invest was yesterday! Investing can be intimidating, but we encourage you to feel the fear and do it anyway. Find a provider, fund your account and buy your first share today! After setting up an account, find a reputable investment-related source you can trust (not a viral social media page or trending Youtube video telling you what to invest in). Educate yourself on how you can take advantage of the market given your circumstances and financial goals. Finally, set it and forget it. Check your investments once a month at most. No need to panic over daily ups and downs!
Are you an investing wizz or just starting out? DM us @theedgemag to keep this conversation going!