You finally saved up the minimum funds to start making investments. Before you dive in, there are a few considerations that you will need to think about. Here are four ways to make investing a bit easier.
Enroll in a 401K Program
If you plan to invest money anywhere, your retirement fund should be the first place you do so. Even if you only make a one percent contribution, it can grow over time. Try to coordinate increases you make to investments with a pay raise so the amount you’re adding doesn’t hurt your wallet.
Invest in Funds with Low Initial Investments
Mutual funds are usually the most popular option for first-time investors, due to their longevity. They usually consist of industries where there is minimal change and a broad variety. You can find funds to buy into for just $50. Usually, lower-end investments will focus on a target date when you want to save a certain amount by (like retirement). Once you reach funds that cost $500, you’ll get to invest in small- to medium-sized businesses, which can help diversify your portfolio.
Let Someone Else Do the Work
There are investment platforms and apps that can do the hard work for you. Betterment is an investment company that offers expert advice and live chat support whenever you’re ready to make changes to your investments. Acorns is an app that allows you to invest spare change by rounding up credit or debit card purchases to the nearest dollar. You can set your investments to process either daily, weekly, or monthly.
Diversify Your Investments
When you are young, you have time to make riskier investments. Overall, you should aim to have a variety of investments, from stocks to mutual funds. If you’re currently living in a house, knowing when to sell can help you make some extra cash. You should have a variety of income sources within your portfolio.