Putting your money to work for you is much more complicated than it sounds. Farah C. Jaber, a hospitality management leader, investor and podcast host, knows quite a bit about it. He runs the podcast known as the “The New Investor Podcast” and has also published a book titled “Becoming an Investor: The First 100 Days.” Both, the book and the podcast came about after a radical change of mindset and self-education on investing that drew him to dramatically grow his net worth. Here are some tips for investing money from Farah C. Jaber.
No Investment without precautionary Savings
First of all, you should know that before placing your money, you must imperatively build up a precautionary savings account. The latter will notably allow you to cope with unforeseen events such as possible car repairs, loss of employment, or even the care of a loved one. You should know that if you do not have precautionary savings, your investment will be much riskier. When you put your money, you should know that only the long term brings security and performance. So, if you urgently need to recover this money, you will be tempted to take back the money and you will lose all profitability and can also be part of your capital. Your investment would then become completely useless.
Set Goals
Before you start investing your money, it’s important to ask yourself the right questions. Indeed, you must imperatively set yourself a specific goal. First of all, you need to know why you want to invest your money, what is really the goal you want to achieve. So you can already know the duration of the necessary investment. Let’s take an example. If you are 40 years old and want to save for your retirement, or if you are 25 and want to buy a superb car, the financial objective will not be the same and the duration will not be the same either. Indeed, for the person wishing to save for his retirement, the objective to be reached will not be the same as for the young person of 25 years. It will, therefore, be necessary to opt for completely different investments.
Investing young is, of course, ideal and this will allow you to spread your investments over the very long term for retirement, other investments in the medium term, and why not more dynamic investments in the short term. So the investment portfolio is well distributed and diversified, which is ideal. The majority of people start to save seriously for their retirement at 40, which is understandable since they have already invested in their main residence and their wages have increased, which allows them to save more. The profile will be different because the quarantine will probably favor security and the pension for his retirement.
Put your Money on the Stock Market
The word “purse” can be scary, but don’t panic. Famous investors do not encourage you to place your money on the stock market at random, but to educate yourself well before and especially favor the stock market in the long term. So by putting your money in solid companies paying dividends, you can then get dividends at the end of the year, every month or every quarter without doing anything. You also have the option of withdrawing your shares as soon as you wish. The goal is to buy in off-peak periods, of course, to pay for a share at a great price in order to win on all fronts (dividends and valuation of the share). You should know that some people buy and sell their shares in the same day is another technique but then very time consuming and much more risky than what I offer. Another way to invest serenely in the stock market and in the long term are index trackers, allowing you to copy stock market indices. In any case, if you want to place your money on the stock market, still avoid going alone without any particular knowledge in this great adventure, which can also lead you to your loss. These are some simple tips that will help you grow your investment and become richer in the process.