Career Woman

5 Crucial tips for first time investors

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Wealth is designed to be the enjoyment of life – yet when it comes to investing it can create more worry and dread, especially for the first time. Contrary to popular belief, there are no right or wrong investments – just ones that will work for you.

Figuring out where to invest generally comes down to how much risk you are willing to tolerate and what type of person you are.  Every investment has an element of risk – even holding onto cash has its own risks (consider what would happen if you got burgled or the bank folded).  These are scenarios which have actually happened. There is no point earning lots of money through investment if you can’t sleep at night and you are worried all the time about what is happening in the market.

  1. What kinds of investments are there?

There are three broad areas of investment

  • Fixed interest
  • Shares/stock
  • Real estate

There are varied and many opportunities within each sector, each having different levels of risk.  It is ok to start small and test the waters with what you are looking to create, while establishing what is fun for you. It sounds frivolous, but this is an important step in creating long term successful investments.

If you have an understanding of yourself, it will make creating wealth and managing your money easier for you. If you get stressed easily, then investing cause more stress, or if you act without thinking, you may not always make the best investment choice.  Money will amplify who you are.

  1. How can you find the right investment for you?

Every investor has an area that they prefer.  Follow your “gut” instincts to find investments that will work for you.  People may come to you with the latest new thing – ask questions around it, both of the person offering the investment and of yourself to, discover your own insight.

Ask questions like:

  • If you invest in this, what will your life be like in 5 years?
  • If you don’t invest, what will your life be like?
  • Is this investment going to contribute to your future?

Get the energy of both and whichever seems to be lighter is the choice to go with. Things that are true for you feel lighter, those that aren’t, feel heavy and burdensome. What is true for one person may not be true for another, which is why one investment will work really well for your friends, and maybe not for you.

  1. Back up your first instinct

Getting your first insight from asking the questions mentioned above is a great start, for the next step – research is key.  Look at the markets you think you may be interested in.

Talk to the experts – they may be real estate agents, stock brokers, bankers and of course include your accountant. No question is a silly question in this stage, and if the people you are asking have decided you’re asking a silly question – think about whether they are the right advisors for you. All these people can give you an insight into what is going on the world of investing. If they don’t have your back and want to offer you the best advice possible, spend time curating your financial support team before investing more.

Find out more about new, emerging markets. Be aware of where investments are heading in your local market and worldwide. You will find that your local market mirrors what is going on, possibly with a time lag, which can be an opportunity for you. Don’t be afraid to research what is occuring overseas – we are much more connected than ever before.

  1. How do you want your money to work for you?

You want to look at what your target is. This is another area where you can question yourself candidly to find out what you truly desire to create.

Ask questions like:

  • Is it a long term thing?
  • Are you wanting to reach a certain amount of money and then invest the larger sum elsewhere?
  • What is your strategy for exiting the investment?
  • If the worst case senario occurs, what will that create in your life financially?
  • If the best case senario occurs, will you still choose the same decision? Or is the investment tempting you towards greed?
  1. Don’t delay unnecesarily

Don’t research forever. Markets change constantly and the opportunity you saw may have gone. Once you have done your research and you get a gut feeling to act, don’t wait. Seize the moment and trust yourself, and trust what you know.

Enjoy creating wealth. Remember, many of us think wealth is about money, but true wealth is really about doing the things you enjoy in life.

About Margie Hulse

Margie Hulse is a business coach, speaker, consultant, property investor and Right Riches for You facilitator for Access Consciousness. She has over 20 years of experience in the creation, investment, promotion and marketing of multiple successful businesses. Having gained financial security for herself, she loves to show others just how easy it can be to do the same. Follow Margie on Facebook.

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