If you think that investing is hard – well, you are wrong! Investing is the kind of actions that look difficult and complicated but are simply the result of discipline and consistency! There’s not magic trick, no secret or special behind the cameras that you need to watch in order to understand it.
So today I decided to split this process into 5 main steps. I believe it is important to let you know that this is as simple as it can be, but you’ll find different ways of investing and different strategies, specially on the internet – SO BE CAREFUL!
Before we start, it is important that you don’t have any debts! In another post, I might explain why you shouldn’t invest if you have debts and ways you can pay your debt faster so you can also invest ASAP!
This process is divided into 5 main steps as I said, and the first step to start building your wealth is building your emergency fund.
In case this concept isn’t familiar to you, an emergency fund is an amount of saved money that you should have to cover your total expenses from 6 to 12 months of your life in case something goes wrong. This amount (let’s call it X) will serve as a pillow in case you fall from this investing journey and will avoid a critical crash in your lifestyle.
There are some investors who don’t believe in emergency funds and decide to invest that money as well – in the end, it is up to you! But I have mine!
The second step is quite simple: choose a broker and create an account there. You won’t be able to buy and sell stocks (or crypto) if you don’t have an account in one. Some of the most famous brokers are: Robinhood, Ameritrade, Fidelity Investments, TradeStation, among many others that you can find online in case none of these doesn’t match your requirements.
After you created your account and have some money in it, it’s time for step three: develop a clear investing plan. If you don’t have one already, you can schedule a meeting with me and we can talk about it if you want, by clicking here. After having a detailed investing plan, it’s time to start investing, and for that, we go to step four!
Step four is the most important step, because you can have two different approaches: 1) every month you invest your money into something, making sure to follow your plan or you have option number 2) you save your money but you have to make sure not to spend it and when you have a good amount of money and the market is down – you simply invest all the money you have been saving! Or you can try to mix the two options and create a third option. It’s totally up to you and that’s great!
When you completed this whole cycle, you go to step 5: consistency! If you start investing and then, suddenly, you stop building your wealth, you’re not allowing your assets to develop even more. That’s why I consider this last step such an important foundation stone when building wealth through investments.
If you have anything you would like to share with my, you can do it via Instagram (@thedigitalguy_net).
I hope that this post has clarified some concepts and the process of investing. I recommend that you keep studying and reading other sources, so you have a wider spectrum of opinions, methods and information.
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