Three Steps Toward Your First Investment

By on April 12, 2015
first investment

first investment

Three Steps Toward Your First Investment

You moved out of home, got your own place and have a decent job. You might even have put a few bucks aside. But you know that now is the time to begin to think about that first investment venture. You have some ideas, from friends and from family. The problem is figuring out how to go about it. If you are ready for your first investment plan, here are three things you need to consider.

It’s Never Too Soon

It is a well known fact that investing small and building up is better than never starting at all. When you are young and not earning as much as you would like, it is tempting to spend it all on going out with friends and buying the latest gadget. But putting a little aside, even as little as $25 a week; can be a good start. Since you can spend that much on lattes in a single day, you should be able to put that much aside to invest in your future. Start a savings account now, and then plan for your first investment.

Find Your Guru

No we don’t mean some guy with a book, though there are some that are well worth reading. But find someone with some knowledge to talk to about investments. Maybe your Dad knows someone, maybe your boss does. Your bank will have investment advisors; it will cost you nothing to talk to them about what you want to do for your first investment. Then listen to what all these people have to say.

Start with What You Know, Then Diversify

A good place to begin might be with a stock in a company you already know and trust. Love the products Apple puts out? Buy a little stock in the company. Look at the things you and your friends use, trust and love. Once you have gotten your toes wet with your first investment, then think about long term investing. You will want to look at mutual funds, which are a pool of funds that will diversify your investment and reduce risk. You might want to also read publications such as Forbes to stay on top of financial trends and give yourself an overview of the financial world.

You Can Control Your Future

If you can, try to make your own decisions without going too far out on a limb. Many banks will offer a discount broker’s service for doing your own investing. You could combine this with a set of mutual funds, since they will have a fund manager who picks out the stocks based on the amount of risk you are willing to take. But if you want to control your investments, you have to be willing to do the research. Whether you choose to hire a financial advisor to advise you on your first investment portfolio or research and do it on your own, stay informed.