Have you been looking forward to start investing? As a beginner, you probably have lots of questions on your mind. “What’s the first steps I should take before investing?”, “What should I consider before I start investing that would ensure minimal risks?”.

There are many ways you could take to start investing after a quick search online, and if you’re wondering on which ones you should follow through, we have outlined 3 simple steps you should take before leaping into your investment journey.


1st Step: Have a Game Plan.

Many would want to achieve early retirement, to buy their first home, to travel around the world, or even to prepare for their children’s education, but few do actually have a proper plan to achieve what they want. A goal without a plan is just a wish and there’s a high chance that you will never be able to achieve it. Because without a plan, the money you earned can easily be spent instead of it being kept in your savings for an important goal.

First, know what you want and set a clear goal with a proper deadline. Determine how much do you need to achieve that goal.

Then, prepare a plan to achieve the goal by understanding your own situation. For example, how much asset do you own currently and what’s its estimated future value? How much do you need to save additionally every month? Be sure to take inflation into account.

Lastly, make a budget. Improve your savings by cutting back on unnecessary spending. Small changes in your spending habits now can give you more money to invest, eventually helping you to achieve your goal faster and easier.


2nd Step: Invest in Yourself, Learn a Proven Investing Strategy That Suits Yourself.

After having a plan in place, it is very likely that you will realize that savings alone might not be able to help you achieve what you want. That’s why you will need to start investing to let your money work harder for you. By investing, it allows your savings to grow by itself while you are asleep!

While investing can be risky, anyone can instantly lower their investment risk by having a systematic and disciplined approach to investing.

Regardless of the investing style, timeframe, or philosophy, all successful investors that have long-term proven track record such as Warren Buffett, Charlie Munger, George Soros, Ray Dalio, etc have a systematic and disciplined investing approach. They transact based on logical, informed thinking that does not let emotions drive their decision-making.

The fastest and easiest way to achieve good and consistent investment results is by learning from successful investors and do exactly what they did. Find a successful investor and adopt their investing style that suits yourself and model after him.


3rd Step: Start with Taking Small Actions.

After modeling a successful investor, it is extremely important that you must apply what you have learnt. Just by learning and not applying what you have learnt, it would not generate the results you want. Knowledge is not power. Applied knowledge is power.

For beginners, it is understandable that you will feel afraid to do your first investment trade. But yet, you should take small steps to overcome this fear. There’s a perception that one need to use lots of money to invest. That is a mistake. You can always invest small, like $100 – $200, to get started. This small amount of money will not become $1 million in the near future, but it will help you build confidence and conviction with the investing strategy. With confidence slowly building up over time, you will able to invest more, generate more returns and eventually achieve your goal.

Disclaimer: All facts and opinions presented are for educational purposes only. This is not a recommendation to buy or to sell. The author involved in the writing of this message has no vested interest in the companies. Please consult a professional for expert financial or other assistance or legal advice.

This article was written by Team VIC
Team VIC is formed by experienced and well-trained individuals from Value Investing College (VIC). The team has been consistently studying the latest stocks market trend in order to focus on educating the layman on investment principles and techniques.

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