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If you have a little spare money it may be tempting to spend it on a treat for yourself, however, you should really think about investing it instead. Although it may not be something that you have done or have thought about doing before, it is a very sensible idea. Not only will it see a better return than the money in a bank savings account, it will also help generate extra money for your family’s future.
Some individuals might think that investing is too difficult to bother with, or is a closed shop that is difficult to get into if you are not a professional. That is not the case in modern times where investing in the financial markets is easier than ever. If you have never dipped your toe into investing, then now is the time to consider it.
Great tips for the first-time female investor
If you like the sound of investing your spare money to make some more then it is essential to know the basics first. The below should give you a great head-start and have you investing like a professional in no time at all.
- Be confident – the first ingredient for investing success is to have some confidence to get involved in the first place and not to be put off. Much of this will come from knowing how investing works and formulating a plan on how best to proceed.
- Educate yourself – don’t expect to become a business guru overnight; some hours of study are required. It is necessary to fully understand how the markets you invest in operate, what might impact your investments, and to have a plan for managing your investment portfolio. This will allow you to invest with less stress and you will be fully prepared to succeed. If you know someone who has experience in investing seek their advice.
- Consider diversification – one great tip that the new investor can take from the professionals is to diversify your investment portfolio. Rather than having a lot of shares from companies all in one sector for example, try to spread them around different sectors or different investment classes altogether. That will expose you to less risk if one sector or asset class collapses.
Keep an eye on upcoming events
Another useful tip for any would-be female investor is to keep an eye on upcoming financial news or events. The financial markets are very sensitive to this and may move one way or the other, which will impact your investments. Having access to a comprehensive stocks and shares calendar is a great tip as you get to see all the important upcoming events without having to do all the hard work drawing it up yourself.
Take your first investment steps
By getting to know the financial markets and obtaining some expert advice, you will soon be able to hunt down canny investments that are worth making. Investing is not just for professional traders – it is something that we all should be doing to boost our personal finances through capital growth and dividend income generated by shares.
Check out my ‘Investing : a women’s perspective’ series which starts here.