Beginning Investing
By Jayme Hanson

If you are just beginning investing then there are a few basic principles of investing that you should understand. You will need to honestly access your current situation. What are your expenses? Do you have high interest rate debt? Do you have any savings and what is the rate of return? For beginning investing the next thing you need to look at is your financial goals. How much money and how long do you have to achieve your goals? What are your goals? Then look at your risk level. How much money do you currently have to invest? How much are you willing to risk? Do you have an emergency fund?

When you are beginning investing you need to find out where your money is going right now. If you aren’t sure then try tracking your spending habits. This will show you were your money is being spent and also identify any areas that you can cut back on and save a little money. If you currently have high

interest debt then your first priority is going to be paying off your debt before beginning investing. You will also want to establish an emergency fund of at least three to six months of expenses.

Once you are in a position to beginning investing then look at investing for the long term. Short term investments either don’t earn much interest or can fluctuate so much that you will never be able to predict when to get into the market and when to get out. The best beginning investing is to get in the market and stay in for the long term. You can always review your investments periodically and make whatever changes are necessary for your current circumstances.

If you are not confident with your overall beginning investing strategy then talk to an investment advisor or someone you trust to help you. The best beginning investing advice is never invest in anything you don’t understand.