Don't be afraid to start small and simple if you're a new investor
Here's what: You have to start somewhere
If you've lost a job, any source of income, or a loved one because of the pandemic, investing probably has not been top of mind. But as we move toward a recovery, it's high time to consider — or rethink — how investing fits into your overall financial plan.
It's clear from our research that the toughest part of investing for many millennials is getting started. Putting hard-earned money into the stock market signals an acceptance that you may lose some of it, and that's understandably difficult to stomach.But as an investor for almost five years now, I know two things to be true: the best strategy is usually the simplest, and there's no shame in starting small. If you want to build wealth at all, you have to start somewhere.
On September 15, I'm hosting a webinar called "How to be a Smarter Investor" where I'll talk with two investing experts about crafting a thoughtful investment strategy, whether you're just getting started or you're already in the weeds. You can register here to join us!—Tanza Loudenback,
Expert tip of the week"Nobody is going to force you to invest, and you don't absolutely need to invest. However, if you're not investing — and therefore not getting to participate in long-term compounding gains — you're going to have to make that up through your savings. And that means the more you save, the less you can spend today.Advertisement
"So if you're not investing, then you are forcing yourself to save more and therefore live a little bit less now. If that doesn't sound great to you, then it's time to start investing, right?" —Certified
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It's not your bank's fault you're earning less on your savings. Interest rates have gone down across the board, but you can still come out ahead.5 red flags to look out for in investing apps, according to a behavioral finance expertAdvertisement
Investing apps are all the rage right now, but the use of certain colors, charts, and game-like features can lead users to act emotionally — the enemy of smart investing.
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