How can a beginner learn to invest?
Keeping money under your mattress is not a good idea because inflation will sooner or later devalue your savings. That is why it is important to learn how to invest your savings profitably, so that the money will generate passive income and provide a bright future for you and your children.
Unfortunately, this is not taught at school or university, which is why young people often have no idea how to start saving profitably when they get their first income. You have to look for options on your own, which is fraught with mistakes and financial losses.
Let's try to learn how to invest without making too many bumps in the road.
First of all, you need to change your mindset and start to see opportunity, not danger. Investors, of course, want to profit from all their investments, but at the same time they know how to take risks wisely and are not afraid of losing money - the main thing that in case of success the income will cover all previous losses.
You can learn to think like an investor with the help of books:
- The Richest Man in Babylon - a book about the richest city in the ancient world, whose inhabitants even then knew the universal laws of money and knew how to use them to enrich themselves.
- Rich Dad, Poor Dad - bestseller by Robert Kiyosaki in which the author talks accessible about the theory and practice of investing in the American realities, this knowledge may well be applied in our country.
- The Road to Financial Independence is an excellent book with lots of tips on investing, which are supported by homework.
After reading this book, you will be able to enrich your knowledge of investment theory: learn how to correctly calculate the profitability of your investments, make a quality investment portfolio and competently apply diversification.
How will you learn how to invest in practice? Some investment companies offer the opportunity to try out their products with virtual money, which is a great risk-free way for beginners. The main thing is not to get too carried away, as real investing is different.
You will get faster results if you start investing real money. However, if you are a beginner, it is a very bad idea to invest all of your money, because the cost of making a mistake is high, and a beginner investor makes many mistakes. It is much better to use the minimum possible amounts (usually 10$ to 100$) - it will save you a lot of nerves and money, and losses will not hit your pocket and motivation hard.
Where to invest for beginners? Here the choice is yours, the main thing is not to scatter - if you have chosen any instrument (metals, stocks, commodities, forex, etc.), then study it thoroughly, and leave the others untouched.
Do not be afraid to take risks, but do it properly - then over time you will become a successful investor.