When you’re looking to invest there are a few things to remember in order to keep your sanity. Here are five tips to help you make the most of your money.
Better late than never but if you have the option, invest early. Set a target amount that you’d like to reach by a certain age and then calculate how much you need to invest weekly or monthly to reach that amount.
Another strategy is to invest often. Investing smaller amounts more often is typically easier than gathering one large sum once a year. The right investment plan will allow you to choose when and how much you contribute, giving you control over your investing but also helping you make smart investing a priority. Using the dollar-cost averaging technique (putting a certain dollar amount in a specific investment on a regular basis) can help even out natural market fluctuations.
It also makes sense to diversify your portfolio. When your money is dispersed over several different investments, the risk lessens. Investments will invariably fluctuate at different times and to different degrees but diversifying gives you a better shot at increasing returns over the long term.
Sometimes watching your investments too closely can be stress inducing. By checking on a regular schedule, you’ll avoid the panic that can come with noticing when some of your investments inevitably dip. Schedule a yearly visit with your financial planner and you should be good to go.
Finally, set goals as to how much you want to save and for how long. Split your investment goals into short- and long-term, think buying a car versus retirement, and decide how much time and money to devote to each.
These tips are a great starting place but don’t hesitate to talk to a professional for investment advice.
At Baron Financial Group, I am more than happy to help people of every age and stage get the education you need to put you on the right path to reach your individual financial goals.
Sources: CIBC, Money.com, Forbes