6 Steps to Smart Investing: From Setting Goals to Getting Help
Are you ready to start investing but not sure where to begin? Follow these six steps to help you navigate the world of investing and make informed financial decisions.
Step 1: Determine financial priorities – Before you start investing, make sure you have taken care of your essential financial obligations. Housing, living expenses, emergency savings, and paying off high-interest debt should take priority. Only invest with leftover funds after these obligations are met.
Step 2: Set investment goals – Define your investment goals, whether it’s saving for retirement, building wealth, creating additional income streams, or supporting a cause. Choose the wealth-building products that align with your goals, such as Traditional and Roth IRAs or brokerage accounts.
Step 3: How much to invest? – Your investment strategy should fit into your current budget and financial priorities. Aim to invest 10-15 percent of your annual income per year, depending on your financial situation.
Step 4: Do your research – Start your investment research with a reliable resource like our Investor Center website. Learn more about investing, protect yourself from scams and fraud, and make informed financial decisions.
Step 5: Recognize red flags – Be cautious of investment offers that promise quick wealth or seem too good to be true. Look out for high-pressure sales tactics and use resources to help you recognize red flags and protect yourself from fraud.
Step 6: Get help – If you’re unsure about investing or need guidance, seek help from a financial advisor or investment professional. They can provide personalized advice based on your financial goals and risk tolerance.
By following these steps, you can start your investment journey on the right foot and work towards achieving your financial goals. Remember, investing is a long-term commitment, so take the time to educate yourself and make informed decisions. Happy investing!