There's no doubt we live in the information age. I've heard it said that the average American consumes several gigabytes of information a day. With all of this knowledge at our fingertips, it can be difficult to find solutions when everyone is pointing in a different direction.
Learning to invest can be a difficult process for those who haven't had a formal education. I know this because I haven't had a formal education in investing, but I have found some great methodologies for getting up to speed quickly. In the beginning, I made several mistakes that I wish I could have avoided such as single stock investing.
By following these three simple tips you'll be well on your way to wise investing.
Three Tips for Beginners
- Meet with the professionals. Look up a few investment brokers in your area. Make a list of three offices to visit. Give them a call and let them know you are new to investing and would like to sit down and have a free lesson on what investments are and how to use them wisely. Most brokers will be willing to do this. Do not invest anything until you have met with these three brokers and have a few good perspectives on growing your money.
- Follow biblical principles on investing and finance. Jay Peroni wrote a great article on BibleMoneyMatters.com regarding biblical finance and investing. Biblical principles on diversification, seeking advice, being diligent, and screening your investments will propel you to success.
- Take your time and build a solid foundation! Don't rush into an investment strategy. It is unwise to invest your money into something you don't fully understand. If you can't explain to a layperson what you're investing into and how it works, you should probably hold off investing until you can. Also, don't begin anything until you put into practice some foundational elements of financial freedom. A strong foundation will ensure your investments are safe from collapse.
Plans fail for lack of counsel, but with many advisers they succeed. -Proverbs 15:22 NIV
If you have the money to obtain a formal education in investments, you might consider signing up. But remember, investing does not require years of training. You'll learn with time. The key is to be proactive and seek out solid financial advice before diving in. Don't let the excuse of not having a formal education hinder your investing.
Everyone needs to save for retirement and pursue a sound financial footing. Surround yourself with knowledgeable, caring people and you'll be on your way to investing with confidence. Investing is a powerful vehicle for building wealth.
The ability to compound your money with time is a mathematical wonder. After you have destroyed your non-mortgage debt, built your fully-funded emergency fund, and obtained the know-how on investing, you are ready for wealth-building. Are you ready?
This article was written by John Frainee, author at TheChristianDollar.com. His goal is to provide biblical financial principles that encourage people to live healthier lives.