Basic Investing Advice - Alyssa J Cori

I am proudly frugal. I will walk an extra 20 minutes to avoid paying for another subway ride. I will buy all of my clothing from a consignment shop. Heck, I’ll even stop shopping for an entire year (although to be fair, that was a minimalist experiment, just like my recent packing post). However, I know that there’s more to growing your net worth than simply saving money (check out all of my money saving posts here, here, here, here, and here).

Aside from saving money like, well, Scrooge, or getting a higher paying job or a side hustle, you can also make your money work for you. While I am gearing up to start investing after just finishing college, here are some basic tips I’ve learned from my research to think about when managing your investments. And remember, there are so many different strategies, so take all advice with a grain of salt and make your own, informed decisions. Here are some articles I’ve found helpful so far: easy ways to start investing, how to start investing, best investing advice for 2018.

Know your investing personality

Are you a risk taker? Super conservative? It can be hard not to compulsively check your investments on a daily basis, but it can be made easier when you feel confident in what you’ve done. Maybe you’ll like picking individual stocks or will be more of an index fund or ETF sort of girl (here’s a great explanation of how to get started with ETFs). However you find yourself investing, make sure you are comfortable with the level of risk.

Know what you’re investing in

While you don’t need to know the ins and outs of every company, it is important to have an understanding of how the industry is performing and decide if this is a place you want to put your money. For example, if you think the auto/retail industry is interesting you can research different companies and take a look at what analysts are saying, like with this post on AutoZone stock. Or maybe you’re a lover of fashion and think the recent Coach/Kate Spade merger is going to be a real winner and you want to invest in Tapestry (the name of the parent company. I imagine that negotiation going down with the best dressed people around haha). When you’re interested, you’re much more likely to enjoy investing and make strategic decisions.

Be aware of fees

Using an app like RobinHood will allow you to invest in stocks without fees. Or you could consider a “robo-advisor” from a list like this one that gives you investing recommendations based on your profile, though you’ll have to pay for this advice. Like I mentioned, I’m just starting to invest so I can’t vouch for these services personally, but they are a good place to begin your considerations.

There is a lot to learn as you venture into investing, but don’t let the vast amount of information scare you off. The earlier you start, the more time you will have to improve your strategy and grow your net worth.

What do you consider when investing? Do you have any advice for people starting out?

-AJF

This is a collaborative post that may contain affiliate links.

Know your investing personality

Know what you’re investing in

Be aware of fees

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