Money can be tight when you're starting out, especially during times when prices for things are going up faster than your paycheck. But once your monthly expenses are under control and saved up for emergencies, it's time to start investing. The question is, where do you start, and how much should you invest?
As a newbie in the investing world, you're bound to have many questions. Don't worry; we've got you covered with our guide to help you navigate it all.
Start early and reap the rewards
Investing while you're young is smart because it gives your money a chance to grow. Thanks to compound returns, your investment returns can start earning their returns. It's like a snowball effect that builds up your account over time.
Now, you might wonder if you can start with a small amount of money. The answer is a resounding yes!
Investing in smaller amounts is easier than ever these days. You can find options with low or no minimum investment requirements, zero commissions, and low fees and charges. So, you don't need a fortune to get started.
Decide how much to invest
Investing when you're young is great, but how much should you invest? Well, that depends on your own circumstances and goals.
If you have a long-term savings goal like retirement, you can be a little bit more aggressive and select an investment that could potentially generate higher returns in the long run.
On the other hand, if you're saving for a short-term goal within the next five years, like buying a car or going on a trip, it's safer to keep your money in a low-risk investment portfolio. You don't want the ups and downs of the stock market to jeopardize your short-term plans.
Open an investment account
When you're ready to invest, you must open an investment account. If you're not investing specifically for retirement, there are various types of accounts to choose from that offer flexibility in accessing your money when you need it.
Know your options
Once you've decided how to invest, you'll need to choose what to invest in. Remember, every investment comes with risk. Take the time to understand each option, the level of risk involved, and whether it aligns with your goals.
Ready to get started? Take control of your financial future and make your money work for you. Happy investing!
Before you make your final decision, do your research. Take control of your financial goals and find the right investment platform for you. It's your money, after all! So, be smart and make informed choices.
Remember, this is just the beginning of your investment journey. Invest smarter with Principal and rock your financial goals like a boss! Explore our goal-based solutions here: https://www.principal.com.my/en/goal-my.html
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