INVESTINGBUDGETINGCOLLEGE

Investing $50

Typically when we hear about investing in the media, or in general, it is associated with large organizations and millionaire/billionaire investors. Investing in the stock market isn’t a get rich quick scheme; it normally doesn’t work that way. Investing is a way to build wealth over a lifetime! It doesn’t require thousands of dollars to get started or to gain profit. Invest in what makes sense for you. There is something for everyone to invest in, down to the manufacturer of the car you drive, the grocery store you shop at, your phone service provider, cable, or even the clothing brands you wear.

Josh’s tips

These are a few of the practices and beliefs that I follow in my investing journey that could be a benefit to anyone.

Invest $50:

It doesn’t take much to get started investing, invest $50. Depending on your finances invest $50 weekly, biweekly, monthly or even bimonthly. Investing $50 is better than not investing at all. If you utilize a savings account and the money is just sitting there, invest it!

Learn your risk tolerance:

Figure out your risk tolerance. Do you want to risk high or risk low? This determines how aggressive you will be in the market and what exactly you should invest in. If you want to risk high then you should invest in stocks, but if you want your risk to be low, then there are alternative such as penny stocks, bonds, mutual funds, and much more. Low risk typically is associated with being safe, likely generates a low return. If you want to be a high risk investor, you could possibly lose money, but in return you could gain a large return.

Be diverse:

Never put all of your eggs in one basket! Invest in different things, this can help balance out your portfolio and regulate risk. While one investment may be having a bad day, your other investments could still be generating some growth.

Some is better than none: In most cases different brokers will allow you to buy fractional shares or slices of a share in an asset. This can be helpful for an individual who can’t afford an entire share of Tesla. Buy in however much you can afford. You can still profit from the fractional investment.

Don’ts:

Just because a stock is hot doesn’t mean you have to get in right away. Chasing the hot stocks can be misleading, as you can possibly lose money doing so. Don’t watch your portfolio too much because this can be intimidating at times and you never want to mix your money with emotions. If you want to keep up with how things are going check out the news or read articles. Depending on how active you are and what your financial goals are, a good practice is to check your portfolio and evaluate periodically.