Once you've saved a bit of money away and are living comfortably, thinking about investing for your future is the next important step in working towards financial freedom. With a consistently smaller number of adults saving and investing money year over year, the sooner you can do this, the better.
With the Coronavirus pandemic trapping many of us indoors and putting our businesses/livelihoods at risk, it might not sound like a great time to start risking and investing your money. However, if you find yourself with some additional time on your hands due to lockdown, and want to spend it productively, there has never been a better time to get to grips with investment and make the most of the online tools at your disposal for free to do so.
Are you interested in finding out more? We've compiled a quick list of three must-learn investment tips for young entrepreneurs. Read on to find out whether these could help you!
Get your finances in order first
Investing is a fantastic way of earning fruitful returns that can blossom further down the line and help you to reach financial freedom. However, if you don't already have a comfortable sum of money that you can afford to put to one side for this venture, then it will be flawed from the start. Remember, despite there being a ton of different investment methods, some a lot more secure than others, and so there is always a risk involved with the investment. Take some time to figure out your existing financial commitments, and establish yourself a 'rainy day fund' for security before you start putting money you don't have into an investment strategy.
You should also remember that many investment methods are typically long-term, and so once you've put your money into them, you won't be able to access it for a while. Again, this emphasises the importance of having a 'rainy-day fund', or a cushion/pot of money that you can quickly dip into if needed for emergencies.
Use the technology that you have at your disposal
With a range of different resources available completely for free online, and in a variety of different formats depending on how you choose to consume it, it's easier than ever to invest and learn about different markets. Again, free of charge. RWinvest, for example, a property investment company, offer PDF guides, videos, articles, blogs and even a podcast on the latest trends in the property investment landscape.
For those that don't necessarily have the time to pursue their own investment strategy actively and instead just want to allocate their capital passively, this has also never been an easier feat to achieve. Why not make the most of your smartphone and check out some of the different investment apps there to learn as you go? Moneybox, for example, a free smartphone app that's easy to install and get started with, rounds up any purchases you make using your phone and adds that change into pre-determined investment groups, allocated your capital automatically on your behalf.
There are a ton of savings and investment apps out there waiting to be explored, and if you want to find out more on this subject then check out The Big Investment's blog on some of the best savings/investment smartphone apps you can get going with.
Diversify your portfolio
This is an important tip and step to keep in mind as you get to grips with investing your money and have your first few investments under your belt. Any of the top investment pundits will tell you that diversifying your portfolio, and having a wide range of different investment types, will be the best way of securing yourself financially and helping to protect against your income stream dropping. By having your fingers in multiple different proverbial pies, should one of your investment areas drop in value, you will still be bolstered and held up by the others. This doesn't just apply to certain aspects of your chosen investment field, but also the field/asset class itself.