LIFESTYLE

Ways To Invest Your Money For Beginners – 5 Steps To Grow Your Money

Investing is only for men? Investing is only for the rich? If that’s how you feeling when it comes to investing your money, then you’ve come to the right place. So into today’s blog post, here are ways to invest your money for beginners – 5 steps to grow your money.

There is no serect that women are failling behind compared to men, when it comes of financies – one to the main reasons is that women tend to invest less money.

Typically speaking, us women tend save more, preserving what we alredy have instead of investing and growing our money – more on the side of caution when it comes to make a huge financial jump but that’s not to say we aren’t good at investing.

At the starting of your investment journey it can be extremely daunting and intimidating, but investing money isn’t alway about put it into the stock market or shares and you don’t ned to be an expert to get started. Everyone can invest, you just need to know the basics. Goodhousekeeping.com/uk mentionedThat figures show that women are big fans of ISAs than investment accounts, focusing on keeping their money accessible rather than growing it”.

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During the year to march 2021 the Kantar study revealed that us brits collectively stashed away a whopping £154 billion – the factors such as spending was less due from being in lockdown, working from home and having fewer opportunities to go out, as many of the entertainment venues and restaurants remained closed or were operating at a reduced capacity. But nevertheless, the most interesting part about this is that while the same proportion of men and women were said to be able to save money during the pandemic (46% of women compared to 50% of men), the amount of men and women were able to put aside a cosiderably difference – women on averaged saved around £2,628, whilst men on averaged saved around £5,335.

But the now the main question is, “what do you plan on doing with the money that you managed to save?” – whether you are planning on mastering your personal financies, planning for retirement, improving your negotiations skills for your next promotion or kick start your investment journey (remember, stocks don’t have to be scary). Read up on different investment way’s, as there are loads useful resources right at your fingertips.

The most common misconception is that you need to earning large amount of money before you can even think about investing anything, but really need to do is start off small with like £20-£30 a month and you could see it grow into a sizeable sum of money over time. But the main point that you will really need to undertand is yes, you don’t have to start out loaded, but there is a potential risk of losing money and getting to comfortable with the concept of investing.

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So what are the 6 main pointers for how to start investing?

  1. Letting go of the ‘FEAR’ – If you already have the appetite for want more knowledge, then there’s half the battle. Yes, sure investment may not be the funiest of sexiest topics, but it’s really abour getting started, educating yourself and getting comfortable with all the lingo. The biggest battle when it comes ot financial investment is the ‘FEAR’ – the unknown of how investments actually work, but you can alway learn. Trusty old Google is always right at your fingertips.
  2. Always do your homework – Let’s learn all about stocks, risk and time. Once you have learnt about the basics of the stock market, then you ready to take the first step and begin investing. Here’s a quick guide:
    • Companies will rasie the money in order to build their business by issuing stocks.
    • Stocks are bought and sold on the stock exchange.
    • Stocks are a way to build wreath. This is an investment that means you own a share in the company that issued the stocks. By buying the stocks ordinary people can invest in some of the most succesfull companies in the world.
    • The main reason why investors buy stocks is to earn return and this generally comes into two forms – The stock’s price appreciates; which means that it goes up and the stock pays dividends.
    • Long-term, the average annual stock market return is usually around 8%; which means £1,000 that was invested in stocks 30 years ago would be worth around on upwards of £10,000 in today’s prices, due to the compound interest.
    • Every investement will involve some degree of risk and it’s commonly said that the risks and returns goes hand in hand – meaning that the lower-risk investments tends to give you a smaller but much more stable return, whereas a higher-risk investment generally have a much larger fluctuations and higher potential returns.
    • Alway consider your risk profile and only invest what you can afford to lose. We all have long-term goals and needs, so make sure that whatever you’re investing is right for you, your goals as well as your own personal risk tolerance.
    • Really think about you future plans – when are you going to be needing your money?
  3. Creat you own trading account – To invest, you will first need to create a trading account and choosing the trading platform is the first step into your investment journey. In different countries there will be different dominating tradin platforms, which make if a little dificult to compare plaforms across borders. However; there are three main pointer for you to conside, are:
    • How expensive is it to trade? Is there a payment in order to create an account?
    • It is user friendly? How easy is it to navigate around the platform?
    • Is it easily accessibly? How many market and products can you access?
  4. How much money should you invest? Well that is an answer that only you will no, as it really depends on the trading fees, your strategy and your financial situation. Commonly, it’s said to start off for a few hundred pounds depending on the fees of the platform.
  5. Invest your money – Now that you are ready to make your first investment! It goes a bit like this:
    • Type the name of the stock that you wish to purchase in the search bar.
    • Then click ‘trade’.
    • State the ‘amount’ and ‘price’.
    • The amount: How much stocks you wish to purchase.
    • Price: The price at which you are willing to pay.
    • Once you have made you decision and pressed ‘buy’ your orderis in the market and it will be completed when someone decides to sell. The large-cap stocks usually have many buyers and sellers, and typically take seconds or minutes for a trade to go through. Whereas the small-cap stocks tend to have fewer investors, and therefore might take a little longer for the trade to go through. The stocks wil only appear in your account soon as the trade is completed.
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