9 investment tips for beginners

Investment tips

If you are thinking about becoming a sole trader or you want to set up a company, we have a few tips that will help you succeed in your investment voyage:

1. Establish a plan and stick to it. Don’t just make a plan. Stay on it! The easiest mistake to make as a first-time investor is to derail from your original plans. You should know what your investment targets are, who you are investing with, and the amount you are investing in. The worst disservice you can do yourself is inconsistency. Don’t just buy shares from a company you have not done your due diligence on, no matter how attractive the dividend may seem.
    
2. Invest as soon as you can. Waiting for the right time to invest may just mean you would never start at all. There is no right time to invest. You could be waiting to invest in a shares or stock when there is a drop in market value thinking the price will shoot up again, only to find out that stock is done for good!
   Also, the earlier you invest, the sooner your money can begin to grow. The bottom line is, don’t wait. Invest as soon as possible. Most times, you should follow the market trends to better understand your investing options.
    
3. Invest, no matter how small you think you have. Think about it – investing £50 a month will be £600 in a year and with the right interest rates, you could have more. You do not have to wait till you have a lot of capital or income to invest.
    
4. Understand investing risk. Sometimes, investing wisely just needs you to have the guts to take risks. You should also understand that the best investors are the ones who take risks. Not every investment will pan out the way you want. Inflation can set and you loose out on a deal. But you must be able to invest in such a way that you are not wrecked in one deal.
    
5. Diversify your investments. One important rule that guides investors is diversification. Have you heard of the term ‘not putting your eggs in one basket’? That also applies to investments. Diversify. Never put all your money in one portfolio so that you don’t take unnecessary risks with just one huge investment. You can invest in a startup company, buy stocks, shares, assets, etc.
    
6. Be tax efficient. Know what your tax duties are and ask for tax relief when they apply to you. You may need to seek the help of a tax or financial accountant for this. Manage your tax filing effectively.
    
7. Think about your pension. While investing, make sure you have something to fall back on in case you take risks that don’t pan out the way you want. In other words, don’t take unnecessary risks by investing all you have. Think of it as an investment buffer; as though you are saving for the rainy day!
    
8. Never borrow to invest. What if the investment fails? How then do you pay what you owe? Only invest what you have. Just because you think it could be a huge deal and investing large amounts will bring you a great fortune does not necessitate borrowing. Don’t be greedy!
    
9. Seek investment advice. There are investment brokers or advisers all over that can give your advice on the best portfolio to invest in at any time. Except you are a financial guru, this should be one of the first things you do anyway. Get an investment adviser and follow the advice given diligently. Otherwise, you can also seek the advice of someone who has been in the investing business longer than you. In fact, get more than one adviser. This way, you compare and contrast opinions before you take the plunge into any investment you are wanting to take. Learn from their highs and pitfalls.

Conclusion

Investing is a risky venture. You should know your risk level before venturing into it. This will help you make a wise choice on where to invest and how much to invest per time.