How to start investing?

Understand why you should investing

Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.

Define your investing goals

When someone just started his or her investing journey, it is difficult to have a clear and reasonable goal. Therefore, why not try to think about some goals you always wanted to achieve. For example, a wonderful trip you always dreamed of, some emergency money saved in case of any unexpected situation, or a retirement plan. Once you have these big goals, you can divide the big goal into a couple of small goals needed to be achieved which will make your investing goals clearer and achievable.

Understand your investing options

Perhaps the most common are stocks, bonds, real estate, and ETFs/mutual funds. Other types of investments to consider are real estate, CDs, annuities, cryptocurrencies, commodities, collectibles, and precious metals.

Balance long-term and short-term investing

Short-term investing is placing your money in a financial product or market, with the intention of achieving a return in a shorter space of time.

A long-term investment is one intended to be held for a significant amount of time – at least five years, but typically ten or more. The approach is based on the principle of spending time in the market, rather than timing the market.

Generally speaking, long-term investments are the best option for most individual investors, while short-term investments can be used if you are savvy enough to exploit openings.

Learn from investment expertise

Mercury Academy partnered with a lot of top professionals in the finance industry, we will share our insights towards the latest news in the market. Follow us and get more information about your investing journey.