Congratulations! You’ve decided to step up to the game and invest your first $1,000. It’s a smart move, but we get it, you might still be a bit uneasy about where the heck to get started. If this is stopping you from taking the plunge, then perhaps the following tips will guide you into settling your first grand. Keep in mind you’ve already taken a huge step just by getting started.
Don’t be afraid to reach out to the experts. This is your first dive into investing so you want to be sure it’s done smartly. First off, you need an online investment advisor such as Finhabits that can help you open an account easily and select a diversified portfolio. Now, be sure it’s done with an online advisor and not an online discount broker. Online brokers will only allow you to open an account, but it’s up to you to pick your first investments. That can be quite overwhelming when you’re only starting out.
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Select a smart portfolio
When selecting a service, it’s important to understand all the fees you’ll be paying. For example, avoid products or any service that has opening or deposit fees. By keeping your costs low, you’ll have better chances of growing your money. Finhabits uses low-cost index funds by reputable firms such as Vanguard or Blackrock. To increase your chances of success you need to diversify your investments, or as we like to say, spread your eggs in different baskets. If this sounds too confusing or you have any concerns, then have no fear as Finhabits’ fully diversified portfolios include equities and bonds. We’re here to do the hard work and simplify your life.
Set up a realistic plan
You know that old saying, ‘We must learn to walk before we can run?’ Well, it also applies to investing. This is a skill you must slowly dip into before you move onto anything more complex. We suggest that you invest your first $1,000 over the course of at least one year. This way you’ll only be contributing $20 a week, which is an easy amount, to begin with since it’s easy to digest. You can always increase this amount as you feel more comfortable with your abilities––before you know it you’ll be a pro.
Learn from the process
Your first $1,000 are not going to make you a millionaire but they will certainly help you learn a great deal about investing. So stop going back and forth and get started today. With the guidance of an online advisor such as Finhabits, a smart portfolio, and recurring auto deposits, you’ve pretty much got this!