Finance is a fundamental part of our lives but despite this most of us were never given formal education on how to start investing. Struggling with money can be an overwhelming source of stress having negative consequences in all fields of your life. This is why it’s important to know the basics of finance before launching your career.
1. Take the risk
Investing can look a bit like a gambling game for those who are new to it. Men have historically been more prone to invest compared to women, who, on the other hand, tend to save money. In fact, despite earning higher returns, women seem to be less confident in their investment skills. However, investing gives you the possibility to fight inflation and make sure your savings are growing with time. Obviously, this comes with risks, but there are plenty of low-risk investments available.
If you are still stressed about it, make sure to create an emergency fund so that you will still have easily accessible money for all sorts of unexpected expenses.
Never rely on a single financial instrument. You need to always diversify your money across different assets and companies so that in the unlucky case in which one of your investments will be negatively impacted by an event, most of your portfolio will still be safe. To give you an idea, a diversified portfolio can include stocks consisting of retail and transport companies as well as government-issued bonds.
3. Use free online tools to start investing
Nowadays, there are plenty of apps online that will help entrepreneurs approach the finance world without getting overwhelmed. For instance, Stash offers both educational contents as well as games that will help you easily understand the finance world and start investing in all safety. This app also allows you to set customized goals and track your progress.
If you don’t feel ready to invest your money yet and would like to do more research, you can try Invstr. This app gives you the possibility to invest 1$ million in fake cash so that you can get a better idea of how the finance world works before you start investing your actual money.