So you're thinking about investing money for the first time? Congratulations! Investing can be a great way to grow your wealth and secure your financial future. However, you need to know how to start investing, and before you start, there are a few tips we have to share with you. 

In this guide, we will discuss 30+ tips to help you start investing on the right foot.

Investing tips before you get started 

Investing can be a broad topic. Different investors will also have their own styles and strategies. One professional's preferences may be contradictory to another. Before we give some tips, it's important to ensure that you understand your investment goals. Do you want to grow your wealth? Save for retirement? Or both?

Your investment goals will shape the type of investments you make. For example, if you're investing for retirement, you'll likely want to focus on long-term investments that have the potential to grow steadily over time. 

On the other hand, if you're looking to grow your wealth more quickly, you may want to consider investing in riskier assets such as stocks and more active strategies such as trading. 

Your risk tolerance, available capital, and knowledge of the market are also important factors to consider before you start investing. If you're new to investing, it's advisable to start small and gradually increase your investment amount as you gain more experience. 

It's also important to diversify your portfolio across different asset classes and investments to mitigate risk.

These are just the basics that we will explain in more detail along with more tips to help increase the probability of success as an investor. 

Once you have a clear understanding of your investment goals, you can start thinking about which investments are right for you. 

Here are some of the top tips on investing money in general. 

Tips on investing money

How to start investing

Now that we have established some basic fundamentals and the importance of understanding your own investment goals, let's discuss some tips on investing money. 

Tip #1 - Start early

The earlier you start investing, the more time your investments have to grow. Compound interest is one of the most powerful wealth-building tools available to investors.

 When you reinvest your earnings and allow them to compound over time, your money has the potential to grow exponentially. 

Of course, we can make mistakes while investing but by starting young, we give ourselves more time to recover from any losses. And even if you aren't young, it's never too late to start investing. 

Tip #2 - Have a plan

Investing without a plan is like driving without a map or GPS. You may eventually get to your destination but it will likely be a lot more difficult and stressful than if you had planned your route. 

To develop a plan, you need to understand your investment goals and your investor profile. You can also write down a roadmap or trading journal to ensure that you are sticking to your plan. 

Tip #3 - Consider tax-efficient accounts

Investing in a tax-efficient account such as an IRA or 401(k) can help you save on taxes in the short and long term. When you invest in a traditional IRA or 401(k), your contributions are made with pre-tax dollars, which reduces your taxable income for the year. 

The earnings on your investments grow tax-deferred, meaning you don't have to pay taxes on them until you withdraw the money in retirement.

There are also Roth versions of these accounts where you contribute with after-tax dollars but all withdrawals, including earnings, are tax-free in retirement. If you expect to be in a higher tax bracket when you retire, a Roth account may be more beneficial. You can learn more about tax-efficient accounts from your CPA. 

Don't neglect this critical part of investing money no matter what you are investing in. For example, if you are investing in real estate, there can also be benefits and consequences if you do or don't structure your ownership through an LLC.

Tip #4 - Consider using dollar-cost averaging

As a beginner, the volatility and short-term price movements can be difficult to deal with. Dollar-cost averaging is an investing technique whereby you invest a fixed sum of money into security or securities at regular intervals

By buying these securities over time, you mitigate the effects of volatility and market timing. You can even automate this process by setting up recurring investments through your brokerage account. 

Tip #5 - Have delayed gratification

In today's society, we are used to instant gratification. With the click of a button, we can order anything we want and have it delivered to our doorstep within days, if not hours. However, when it comes to investing, you need to have delayed gratification.

Investing is a long-term game and requires patience to be successful. When you can delay gratification and resist the urge to sell when your investments are down, you increase your chances of achieving your investment goals. 

As a beginner, it can be tempting to cash out when you see your investments go up in value but remember, the key to successful investing is to buy low and sell high. 

Tip #6 - Capital gains vs cash flow: Understand the difference

Many beginner investors only focus on one thing - making money. However, there are two different ways to make money from investing - capital gains and cash flow. 

It's important to understand the difference between the two, as they can have a big impact on your overall wealth.

Capital gains

Capital gains refer to the profit you make when you sell an investment for more than you paid for it. 

For example, if you buy a stock for $100 and sell it later for $120, you've made a capital gain of $20. You buy a fixer-upper house for $50,000, put in $20,000 of renovations, and sell it for $100,000. You've made a capital gain of $30,000. If you buy antique furniture and sell it later for a higher price, you've made a capital gain.

Cash flow

Cash flow, on the other hand, is the money that an investment generates while you own it. An example of this can be if you invested in a rental property and collected $500 in rent each month. In this case, your cash flow would be $500 per month. 

Dividends from stocks can also be considered cash flow and can be used as a retirement strategy. If you purchase antique furniture and rent it out to people who want to use it for special occasions, the rental income would be considered cash flow. 

While both capital gains and cash flow can help grow your wealth, they work in different ways. Capital gains are typically realized when you sell an investment, while cash flow is the ongoing income that you receive while owning the investment. 

As you can see from the examples above, an asset can be utilized for both capital gains and cash flow. It's important to understand how each one works so that you can make the best decisions for your portfolio.

Tip #7 - Diversify your portfolio

When it comes to investing, diversification is key. By investing in a variety of asset classes and securities, you mitigate the risk of losses if one particular investment goes sour.

For example, if you invest all of your money in one stock and that stock tanks, you could lose everything. But if you diversify your portfolio and invest in a variety of stocks, bonds, and other assets, you'll still have some money even if one investment doesn't perform well. 

Here are just a few types of asset classes that are the most common among investors: 

  • Stocks 
  • Mutual Funds 
  • Bonds 
  • Exchange Traded Funds (ETFs) 
  • Real Estate Investment Trusts (REITs) 
  • Commodities (gold, silver, oil, etc)

As a beginner, these asset classes are relatively easy to get started with. However, there are many other ways to invest in more sophisticated strategies as you grow your portfolio.

Tip #8 - Invest in what you know

A good way to start investing is to invest in what you know. If you're familiar with a particular industry or company, you're more likely to understand how it works and how it will perform. Imagine if you have worked in the auto industry for many years. 

You're more likely to have a good understanding of companies like Ford, Chrysler, and so on. This knowledge is not only related to products, but also its competitive landscape, and its financials. This knowledge can give you an edge when it comes to investing in industries related to auto or TaaS stocks

Of course, you don't have to work for a company to know about it. Maybe you're an avid follower of Apple products or perhaps you're passionate about sustainable investing and want to invest in companies that are making a positive impact on the environment. 

Whatever your interests are, there are likely companies that align with them, and by investing in what you know, you can increase your chances of success. 

A common mistake that beginners make is to follow the crowd into trades and invest in things they know nothing about. For example, blockchain is trendy right now. But if you don't know anything about it, you're more likely to make poor investment decisions. 

It's important to keep this tip in mind as you look for ways to invest your capital.

Tip #9 - Avoid excessive leverage

When it comes to real estate investing, leverage (mortgages) is a common tool that is used to purchase property. While leverage can help you buy more property than you could otherwise afford, it also comes with risk. 

If the property value goes down, you could end up owing more than the property is worth. This is why it's important to be careful with leverage and not use it excessively.

Leverage can also be used in other assets such as stocks. In this case, it would be taking out loans to buy more stocks than you could otherwise afford. This can help you boost your returns if the stock price goes up, but it can also amplify your losses if the stock price falls. 

For this reason, it's important to be aware of the risks associated with leverage before you even consider taking out a loan or trading on margin. 

Being margin called as a result of a stock price decline is one of the quickest ways to lose all your capital. In general, you should avoid using leverage when you're first starting out as an investor. 

It's best to get comfortable with investing without leverage first, and then you can slowly start to add it into your portfolio as you become more experienced.

Tip #10 - Have an exit strategy

Although investing for the long term and having delayed gratification is often recommended by professionals, it's important to have an exit strategy for every investment.

An exit strategy is simply a plan of action that you will take to sell an investment if it reaches a certain price. For example, let's say you buy a stock for $50 and you're comfortable holding it for the long term. 

But you also have a plan to sell if it reaches $100. This would be your exit strategy. Not all assets and investments require an exit strategy. If it remains the best asset available, holding them forever and passing them down to future generations may be the best decision.

However, for other investments, it's important to have a plan so that you don't get emotionally attached to the investment and hold on to it for too long. 

Tip #11 - Have emotional resilience

There will be bear markets and unforeseen events that occur which will lead to large price declines in assets. If you're not prepared for this, it can lead to selling at the worst possible time. It's important to have emotional resiliency when it comes to investing. 

This means being able to handle the ups and downs of the market without getting too emotional about it. Some people can do this on their own, but others may need help from a professional. 

Either way, it's important to be aware of your emotions and how they can impact your investment decisions, especially anxiety and fear.

Tip #12 - Learn about the concept of liquidity

Liquidity is the ability to sell an asset quickly and at a fair price. Not all assets are liquid, and this is something that you need to be aware of before you invest. 

For example, let's say you buy a piece of art for $100. If you wanted to sell it immediately, you might not be able to find a buyer willing to pay $100 for it. Or, if you did find a buyer, you might have to sell it at a discount to get rid of it quickly. 

This is an example of an illiquid asset. On the other hand, stocks are generally considered to be liquid assets because they can be sold quickly and at a fair price. This is one of the reasons why stocks are often recommended as a good investment for beginner investors. 

The reason why learning about liquidity is important as an investor is that if you need the cash for other purposes, you need to know how easy it will be to sell the asset. 

Beginners are also more susceptible to making mistakes. If a mistake was made in an illiquid asset, it could be very difficult and costly to sell the asset to get the cashback. 

Tip #13 - Look for undervalued opportunities

What is an undervalued opportunity? It's an investment that is trading below its intrinsic value. To find these opportunities, you need to look for companies that are out of favor with the market. 

Value investing is a popular strategy among stock investors that you can start using, and the same concept can apply to other investments like real estate, bonds, and even collectibles. When looking for undervalued opportunities, don't just focus on the price. 

This can be tricky as value is often subjective. But some metrics can help identify if an investment is trading below its intrinsic value. For stocks, look at the price-to-earnings ratio, price-to-book ratio, and price-to-sales ratio. When it comes to real estate, look at the price-to-rent ratio. 

And for bonds, look at the yield. Of course, these ratios don't tell the whole story. You also need to look at the overall financials, competitive landscape, and growth prospects. But they can be a good starting point in your search for undervalued opportunities.

Tip #14 - Learn how to identify risk/reward & asymmetrical opportunities

Risk and reward are two important concepts that every investor needs to understand. It's commonly believed that an investment needs to be riskier to yield a higher return. But this isn't always the case.

There are opportunities out there that have a higher potential return than risk. These are known as asymmetrical opportunities. An example of an asymmetrical opportunity is when there is a high percentage of returns with little risk. 

Of course, this doesn't mean that all asymmetrical opportunities are good investments. But it's something that you should be aware of as an investor. To identify risk/reward, you need to look at the potential upside and downside of an investment. 

For example, let's say you're considering investing in a new company. The potential upside is that the company could dominate the market. 

Even if the worst-case scenario were to happen, they would have enough cash to stay afloat. In this case, the risk/reward would be favorable because the potential upside is much higher than the downside.

This is just a simplified example. When making investment decisions, you need to do your own research to identify the risk/reward. But it's a good idea to keep this concept in mind when assessing opportunities. 

Tip #15 - Think for yourself

Ray Dalio is a billionaire hedge fund manager and he says that the best way to learn about investing is to think for yourself. When it comes to making investment decisions, don't blindly follow what others are doing or saying.

Do your own research and come to your own conclusions. Sure, you can receive inspiration and learn about what the best investors are doing but at the end of the day, you need to make your own decisions. 

Tip #16 - Learn about market cycles

Like weather seasons, the stock market has cycles. There are bull markets, bear markets, and periods of sideways or consolidation markets. To be a successful investor, you need to understand how these cycles work and how to take advantage of them. 

Real estate also goes through market cycles, although they may be different from the stock market. This knowledge is helpful for beginners because it can give you an idea of when is the best time to buy or sell or even short real estate.

In general, bull markets are characterized by optimism, economic growth, and rising asset prices. In contrast, bear markets often experience the opposite. By knowing how to identify these market seasons, you can better adjust your strategy and deploy capital more effectively.

Tip #17 - Consider economics, geopolitics, and psychology

You might be thinking, "What do these three things have to do with investing?" Well, they have a lot to do with it. Economics, geopolitics, and psychology are all factors that can affect the markets. As an investor, you need to be aware of these factors and how they might impact your investments.

For example, let's say you're considering investing in a company that does business in Europe. If there's political instability in Europe, it could hurt the company's stock price. Or, let's say you're considering investing in a new tech company. If there's a recession, people might be less likely to buy their products. 

These are just a few examples of how geopolitics and economics can affect the markets.

As a new investor, it can be overwhelming to be an expert in these subjects, but that is not the goal as you are just starting. But just simply being aware that these factors exist and can have an impact on your investments is helpful. 

As you gain more experience, you can start to learn more about these subjects and how they impact the markets. 

Tip #18 - Set your affairs

It's not fun to think about, but something every investor should do is set their affairs in order. This includes having a will, naming beneficiaries on accounts, and creating a power of attorney. 

If something happens to you, you want to make sure your loved ones are taken care of and your investments are handled the way you would want them to be. 

Through compounding, you might be generating wealth for your family without even knowing it. But without a will, your family might have to go through unnecessary hardship and stress during an already difficult time. 

Tip #19 - Play devil's advocate

When we find a great investment, our biases can lead us to overlook potential problems. To combat this, it's helpful to play devil's advocate and look for the flaws in an investment or even write an investment thesis to organize your views.

By doing this, you can get a more well-rounded view of an opportunity and make sure you're not overlooking any potential risks.

It can be difficult to do this on your own, which is why it's important to have a trusted investment advisor or partner. They can help you look at investments from different angles and challenge your assumptions. 

However, this can still present problems as "Yes men" are often more interested in getting you to invest than giving you objective advice which leads us to the final tip.

Tip #20 - Join a community or investment network

By being a part of an investment network or community, you can get access to different perspectives, resources, and knowledge. This is helpful for several reasons. 

First, it can help you learn from other investors. They say knowledge is the best investment, and there's no doubt about that. 

Second, it can provide you with different perspectives on investments that are more objective. As mentioned earlier, it's important to have someone who will challenge your assumptions. It could also open your mind to the benefits of a past pessimistic outlook that you might have had on investment. 

Finally, it can give you access to even more investments or capital to invest with. For example, if a local business is doing well and is open to only one private investor, being a part of an investment network or community can give you the chance to get in on that deal. 

Another example could be that you've found a great property but need a loan. If traditional banks are not lending, maybe another member of your investment network could fund the deal. 

You can think for yourself but that does not mean you have to isolate yourself. Investing is a topic that many others are interested in. Through conferences, internet forums, or even just meetups, there are plenty of opportunities to connect with other investors or even find a mentor

Loneliness can lead to emotional investing but fulfilled and intentional investment can come from being connected to the community. Investing in your networks is an asset in itself. 

Tips to start investing in stocks 

How to start investing

Now that we have gone over some general investing tips, let's focus on tips for stocks specifically. As a beginner in the stock market, it can be confusing to try to understand the charts, ticker symbols, culture, sayings, and terms

If P/E ratios, dividends, EPS, and ROI make your head spin, don't worry- you're not alone. 

These terms can be confusing for beginners, but with time and experience, you will start to understand them. For now, let's focus on some tips for investing in stocks. 

Tip #21 - Consider the commission fees

When you're buying stocks, you need to be aware of the commission fees. This is the fee that your broker will charge you for each trade. When you're just starting out, these fees can add up and eat into your profits. 

This is because even a few dollars will result in less of a compounding effect. So, it's important to consider the commission fees when deciding which broker to use, and also avoid overtrading.

Tip #22 - Start with index funds

Evaluating individual stocks can require more time and research than some beginner investors are willing to put in. If you're just starting out, it might be helpful to invest in index funds. Index funds are a type of mutual fund that tracks a specific market index, such as the S&P 500.

By investing in an index fund, you will automatically own a piece of every company in the index. This is a simple way to diversify your portfolio. 

Oftentimes beginners and even advanced investors can select the wrong companies to invest in. However, with index funds, you don't have to worry about picking the right stocks as they are already selected for you. Despite their disadvantages, they are one of the best investment vehicles for first-time investors.

Tip #23 - Don't try to time the markets 

It's impossible to predict the stock market. So, don't try to time the markets by trying to guess when is the best time to buy or sell stocks. Instead, focus on building a diversified portfolio that you can hold for the long term. 

Over time, the stock market has always gone up. So, if you invest in a diversified portfolio of good companies and hold them for the long term, you will likely be a successful investor.

Many factors influence the corrections and bull runs of the stock market. These include, but are not limited to earnings reports, political stability, consumer confidence, and international events. 

Many of these factors are out of your control. Evaluating and understanding how all these factors will affect the stock market is a full-time job. And even then, it's impossible to predict the future of the markets with 100% accuracy.

Tip #24 - Avoid penny stocks

Penny stocks are low-priced shares of small companies. They are often volatile and risky, while plenty of penny stocks are ripe for manipulation by market participants or even insiders.

So, it's best to avoid penny stocks, especially if you're a beginner investor. Although large gains can be made, large losses can be made as well.

Tip #25 - Understand the difference between value investing and growth investing

When you're investing in stocks, you will likely come across the terms "value investing" and "growth investing." It's important to understand the difference between the two

Value investing is an investment strategy that involves buying stocks that are undervalued by the market. Growth investing is an investment strategy that involves buying stocks of companies that are growing at an above-average rate.

Both strategies can be successful. As a beginner, it can be easier to find growth stocks than value stocks because it takes more knowledge and experience to be able to pick good value stocks. 

You can also invest in funds that hold value or growth stocks. Some are growth oriented while others are value-oriented. By understanding the differences, you can pick the right funds for your investment goals.

Tip #26 - Consider blue chip companies

When you're just starting out, it can be helpful to invest in blue chip companies. Blue chip companies are large, established companies with a history of stable growth, or what are typically described as cash cow stocks

They often have strong balance sheets and generate a lot of cash flow. These characteristics make them less risky than small, unproven companies.

Blue chip stocks can be a good foundation for your portfolio. They can provide you with a source of stable income and the potential for capital appreciation. And because they're less volatile than small-cap stocks, they can help reduce the overall risk of your portfolio. 

When those first dividend payouts enter your account, it's often an enlightening experience for beginners. So even if you progress to more advanced investments, you won't forget the blue chips that got you started. 

Tip #27 - Read investing books

One of the best things you can do to learn about investing is to read books on the subject. You should start with some beginner investing books.

Some of our favorites include The Intelligent Investor by Benjamin Graham, One Up On Wall Street by Peter Lynch, and The Warren Buffet Way by Robert Hagstrom. These texts will teach you a great deal about how to value companies and make smart investment decisions. 

Don't forget that stock investing has been a tool for building wealth for centuries, so there's a lot of helpful information to be found in older books as well. As you read, take note of the strategies and philosophies that make sense to you and begin to formulate your own investing plan.

If reading isn't the best way that you learn, podcasts about the subject and even visual explainer videos can be helpful as well. Just make sure that you're getting your information from a credible source. The investing environment is ever-changing but the principles are timeless.

As you become more experienced you can start reading more advanced books, like fundamental analysis books.

Tip #28 - Read Quotes

Quotes are also a great way to learn about investing, especially if you read what some of the most successful investors have to say. Most of the time, experienced investors are able to share a lot of knowledge with just a single sentence.

Their experience can help beginner investors understand the importance of different concepts that should not be overlooked. Here are some of the quotes from famous investors you should read:

Tip #29 - Avoid Fearful investing

"FOMO" stands for "fear of missing out." It's the feeling that you might miss out on something big if you don't invest in a certain stock or asset. Many people make bad investment decisions because they're afraid of missing out on potential profits.

During periods of market excitement, it can be hard to avoid FOMO. But it's important to remember that investments are a long-term game. It's more important to focus on quality and value than on chasing the latest hot stock. 

Fear is a natural human emotion. But by being aware of when we feel it, we can avoid making impulsive decisions that we might later regret. 

On top of FOMO, fear can manifest in fear of losing money. This can cause many beginners to stay out of the stock market for too long. For example, there could be fears that inflation might cause the stock market to drop, followed by fears of political instability or a recession. Then someone might not invest because of fear of war. This can also be described as "paralysis by analysis." 

Investors need to take a deep breath, do their research, and remember that no one can predict the future. The best way to avoid these fears is to remember that stock prices fluctuate all the time. The market will go up and down, but if you invest with sound principles, you will be successful in the long run.

"The only thing to fear is fear itself." - Franklin D. Roosevelt 

Fear of success can also be a problem. Imposter Syndrome is when people feel like they're not good enough or don't deserve their success. It can be described as a self-defeating attitude.

As a stock market beginner, you might not have experienced this problem yet but as you progress, you might make self-destructive decisions because of this feeling. You might sell all of your index funds to invest in a penny stock because you don't believe that you deserve the rewards of compounding wealth. 

This fear is often overlooked but it does happen. Make sure you address these feelings before you reach a level of success that might tempt you to make irrational decisions. 

Successful investing requires a good understanding of your own psychology as well as others. By being aware of these fears, you can avoid making decisions that you might later regret. And by being aware of fear in others, you can see buying opportunities when everyone is selling in panic. 

Adopt a positive mindset, do your research, and don't let irrational fears get in the way of your investment success.

Tip #30 - Don't let the money get to your head 

One of the most important things for first-time investors to remember is not to let the money get to their heads. Just because you have a bit of extra cash doesn't mean that you should go out and spend it all on unnecessary things. 

Instead, focus on investing your money wisely so that you can grow your wealth over time. It's also important to stay humble. 

Beginners in bull markets will often feel invincible but when the bears come clawing, they realize that they're not as savvy as they thought. So, always stay humble and remember that you still have a lot to learn. 

Relationships outside of the markets still matter. Just because you're making money doesn't mean that you should neglect your family and friends. Some things are priceless and you don't want to trade your most valuable assets for paper ones.

Tip #31 - Stay disciplined

Another important tip for first-time investors is to stay disciplined with their investing strategy. It can be tempting to try to chase after hot stocks or make impulsive decisions, but this is often a recipe for disaster.

If you want to be successful as an investor, you need to have a plan and stick to it. This means being patient and only making investments in things you know about. Being disciplined in your learning and decision-making process will pay off in the long run.

How to start investing in stocks

Traditionally, the best way to start investing in stocks is through a broker. A broker is somebody who buys and sells stocks on your behalf. However, we will also go through two additional and more popular ways people are now starting to invest in stocks.

There are two main types of traditional brokers: full-service and discount

Full-service brokers offer a wide range of services, from helping you choose stocks to give you advice on financial planning. 

Discount brokers are a more stripped-down version, offering only the bare necessities such as the execution of trades.

Which type of broker you choose will depend on your needs and preferences. If you're a beginner, it might be a good idea to go with a full-service broker so that you have somebody to guide you through the process. 

However, if you're more experienced or are comfortable doing your own research, a discount broker might be a better option.

The problem with these two options is that they can often be much more expensive than necessary. That's why self-directed investors are increasingly popular. 

Self-directed investing is when you manage your own investments without the help of a broker. This can be done through online platforms such as Robinhood or eTrade. These platforms allow you to buy and sell stocks without paying any commissions. 

This makes them much cheaper than traditional brokers. Another benefit of self-directed investing is that you have full control over your investment decisions. You don't have to rely on somebody else to tell you what to do. 

This can be both good and bad. It's good because you get to make your own decisions and are in charge of your own investment success. However, it's also bad because you might not always make the best decisions. 

This is why it's important to do your own research before making any investment decisions. Despite the risks, self-directed investing is a great way for first-time investors to get started in the stock market. 

If you'd like more guidance and automation, you can also get started with Robo-advisors. These automated platforms will manage your investments for you and can help take the guesswork out of investing. 

Through advancements in technology and education, it's much easier for people to start investing in the stock market. All you have to do is create an account with the option that you prefer best, deposit some cash and select the stocks you want to invest in.

How much should a beginner investor start with?

It's difficult to issue a specific answer because it depends on each person's circumstances and goals. That said, a good rule of thumb is to start with at least $500. 

If you can save up a few hundred dollars, it is a sign that your income is above your expenses and you have enough personal cash flow to start investing. Some accounts will also require a minimum so be sure to check before you open one.

If $500 is too difficult to save up, you can still invest through fractional shares or with an app like Acorns. This will round up your spare change and invest it for you. 

For example, if you spend $12.50 on lunch, Acorns will round up to $13 and invest the spare $0.50. While this may not seem like a lot, it can add up over time if you continue to make small purchases.

It also depends on the investment type. For real estate, you'd likely need at least $20,000 to get started. But there are other options, such as REITs that trade on the stock market, which can be bought for less. The important thing is to start somewhere and gradually grow your portfolio over time.

What investments should a first-time investor have?

There's no one answer to this question since everyone's financial circumstances are different. However, many experts recommend a mix of stocks and bonds as a good starting point for first-time investors. 

Stocks tend to be more volatile than bonds, but they also have the potential for higher returns over the long run. These two asset classes are also quite liquid which means they can be easily bought and sold if you need to access your money. 

They will also teach you about investing in different types of securities and how to read a balance sheet. This is important because understanding what a company values will help you choose better investments in the future.

Once you have a basic understanding of investing, you can start to look at specific investments. When picking stocks, for example, you want to look for companies that are undervalued by the market and have good prospects for future growth. 

But as a beginner investor, don't overwhelm yourself. Instead of starting by picking stocks, just investing in an index fund that tracks the S&P 500 is a productive step.

How to start investing as a teenager 

It may be a little more difficult to start investing as a teenager. The reason for the added difficulty is that most teenagers don't have a lot of money to start with.

Many investment vehicles will also require that the investor be at least 18 years old. However, there are still some options available for teenage investors. One option is to start investing in mutual funds. 

Many mutual fund companies have no minimum investment requirement. This means that even if you only have a few hundred dollars to start with, you can still invest in a mutual fund. 

Most jurisdictions allow 16-year-olds to open their own brokerage accounts. This means that you can start investing in stocks, bonds, and other securities. Some options that may not be available to teenagers are starting their own business or investing in real estate. However, there are still some ways to get started in these areas. 

Many banks will allow teenagers to open savings accounts. This can be a good way to start saving for a business or real estate investment. As soon as you turn 18, you can then start investing in these areas. 

While it may be more difficult to start investing as a teenager, it's not impossible. Although some investment vehicles are not readily available, you can still invest in the greatest asset of all (yourself). 

Utilize your youth to learn as much as you can about investing. This will put you in a great position to start growing your wealth as soon as you're able. 


Now that was a lot of information to take in as a beginner. But these tips will help build your fundamental knowledge so that you can start growing your wealth. Just remember to start small, invest in what you understand, and don't be afraid to ask for help from others but remember to think for yourself.

Investing is a journey and a marathon, not a get-rich sprint. Make sure to bookmark this article and read more content on this website to continue your investing journey.