1. Educate yourself about investment
Understanding how the market and investment work can alleviate fear around investing. It also helps reduce anxiety when you are aware of all the variables at stake and how they influence each other. Here are the top 8 investment for beginner’s podcasts to listen to for guidance: einvestingforbeginners.com/top-investing-podcasts
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2. Set clear goals
Write down your financial goals and set a timeline against them. The excitement of reaching the goal alone will give you enough motivation to work towards it and be consistent.
3. Analyse your risk tolerance
You need to determine how much of a risk you are comfortable taking in order to get higher earnings, then build your approach accordingly. If you are open to a higher-risk investment you must be open to the chance that it might incur higher losses than that of a lower-risk investment. Acknowledging that will make you feel more empowered because the choice lies with you.
4. Choose a strategy that works for you
When it comes to investing, consistency is key. So, find a method that appeals to you. You may want to take a closer look at your spending habits and introduce a few tiny changes that help you save more money that you can invest. Start small, but stay consistent, even if it means saving 1% of your pay. When you make it a habit and see the earnings, you will automatically be encouraged to save and invest more.
5. Set a limit and forget about it
Out of sight is out of mind, and that stands true of money too. Setting up an automated savings plan every month that puts a set amount into a dedicated portfolio of investments is the most ideal way to ensure consistency. This routine takes away the human intervention that leads to emotional mistakes surrounding the investment.
6. Don't get discouraged or panic
When it comes to investment, things do not always go as planned. Market shifts, socio-political instability, and economic volatility lead investors with risky plans to panic. The ideal way to kick start your investment journey is to start small, learn from your mistakes and then move forward accordingly to minimize your losses. If you have assessed your risk appetite and chosen a portfolio that aligns with your investment goals, you're more likely to recover from the losses.