If your goal is to start investing for your future but you’re not sure where to start, you’re in the right place at Global Commercial Capital Investment Group is one of the world’s leading multi-asset investment firms. Investing doesn’t have to be confusing or complicated. In fact, investing in your future is one of the best long-term moves you can make.
While the investment itself is simple once you set it up, it’s not always easy to know where to start. The amount of investment information available can be staggering, and you may find yourself sifting through ill-advised stock picks, unsolicited advice from family members, and market news that is always full of drama.
Starting early and investing often is the secret to a healthy retirement account. Plus, the power of compound interest, which can add serious momentum with a long-term investment horizon, can make your money grow even while you sleep.
The investment strategy for beginners
Before you start investing, it is important to specify a few things.
First, consider your budget and emergency savings. Experts recommend that you have about six months of spending in a savings account before seriously investing in the market.
In most cases, it’s a good idea to pay off high-interest debt before you start investing. Those with student loans or mortgages may want to slowly reduce their debt while also investing in the stock market. However, high-rate personal loans and credit card balances should be taken care of first, as any market gains will likely be dwarfed by the interest on that debt.
After you’ve set aside enough in an emergency fund, review your budget and invest as much as you can. Keep in mind that even $100 pesos are enough to invest. Small, consistent amounts add up over time, and the most important thing is to be consistent and start as soon as possible.
How to start investing today
If you need help with your investment portfolio, a robotic advisor can ask you a few questions about your risk tolerance and investment schedule to determine the best investments for you. Robot-advisors are used by most investors and are reliable. Once you know your risk tolerance, you are ready to open an account.
The power of consistency
Try to invest at regular intervals, like every time you get paid. This strategy is known as dollar-cost averaging because contributing regularly over time will get you in the habit of investing. Just focus on consistency. Some employers may even automatically deposit a portion of your paycheck into your investment account. When the money is in your account, make sure it’s not there.
For most investors, a low-cost, broad-market index fund that tracks the total stock market or the S&P 500, which are available from most brokers and retirement plans, is recommended.