Beginner’s Guide to Investing

If you’re just starting out, investing might seem intimidating. But, in simple terms, it's basically about growing your money for the future 💸.

For example, imagine you have a savings account that quietly works even while you’re asleep. That’s essentially what investing is about.

You may be wondering “Why should I even invest?”. Below are three main reasons 👇

• Investing helps you beat inflation: It is hard and painful to watch your hard-earned money lose its value over time and investing in certain assets can help you outpace inflation and maintain a strong purchasing power.
• Investing helps you meet your goals: Whether your goal is to afford that dream vacation, or make a down payment on your future home, or maybe even to secure your retirement, investing can be a great way to achieve your financial aspirations.
• Reinvesting helps you maximize compound interest: Compound Interest, to many, sounds like a complicated concept. It isn’t. It is simply reinvesting your earnings over a period of time to allow your money grow exponentially.

Ready to start investing? Use these tips for the best results 👇🏾

• Progress, not perfection: If you’re just starting out, don’t try to overwhelm yourself by trying to learn all there is or seeking a piece of every pie. Focus on consistently building knowledge and wealth over time by taking baby steps and growing reasonably.
• Diversify your portfolio:  Many first timers make the mistake of putting all their eggs in the same basket when it comes to investing and, usually, when they suffer loss, it is huge. As a newbie, try to diversify your portfolio. This means spreading your investments across different asset classes (stocks, bonds, mutual funds, real estate, etc) as a way of managing risk.
• Be self-aware and market aware: Research is very important when it comes to investing, and the most important thing you need to learn before commencing this journey is your risk appetite. This basically means knowing how much risk you can tolerate and using that information to make decisions about your investments. In addition to knowing your risk appetite, always try to learn as much as you can about the assets you’re investing in.

Always remember that investing is a marathon, not a sprint. Be patient, stay informed, and don't be shy to seek professional guidance when needed.