Investing often comes off as inaccessible to the average person. Many of us imagine investors as finance experts who throw words like 'stock market' and 'arbitrage' into every sentence.
But, thanks to technology and millennials, investing is much easier and accessible. The stock market is what we call the public domain, where all public companies sell their stocks.
With as little as N500, you too can start dabbling in the stock market and building your passive income on your own through investing.
So keep reading for 4 things to consider before you start investing.
1. How much money do you intend to invest?
Obviously, the more money you have, the more you'll be able to save and invest, but you honestly don't need a lot to begin.
You can start by tracking your spending to see where you might have a bit of wiggle room. Are you spending more than you need to on internet subscriptions? Are you taking more "self-care" days than you need? 🌚
Tracking your money will help you figure these out. And with that precise estimate, you'll know how much you can put in your monthly investment bucket.
2. What is your investment goal?
Your goal will help you determine: how long your investments should run, what kind of investment you should be looking into and a few other things. Goals could vary from setting money aside for nothing in particular to specific goals like building up your funds for renting/buying a home or even creating a retirement plan.
Remember that investment and emergency funds are NOT the same. Your emergency savings should be in a savings account where you can access it without fixed dates or restrictions of investing.
3. For how long do you want to keep the investment running?
Your money goals should determine the length of your investments. If your goal is to set up an investment structure that will help you passively earn for a new home, you're going to want to base the timeline on when you intend to move.
If you're a conservative person who likes to be in control, you're more likely to opt for shorter-term investments. Apps like RiseVest, PiggyVest and Cowrywise, give you control over your timeline.
Tip💡 : infuse your investments into your budgeting goals by scheduling payments to your investment accounts on your gomoney app and categorising them accordingly.
4. Do you intend to invest in more than one thing?
Diversifying is excellent because it allows you to spread your investment opportunities and minimises the risk probability.
You can diversify your investments by industry — e.g. investing in farming and real-estate simultaneously—or companies.
Fortunately, most investment apps already deal in diversified portfolios. If you decide that it's your thing, they've got you.
However, if you choose to diversify on your own, researching the companies you're considering and investing directly from the stock market is your best bet. You could also hire someone to invest for you if you can afford it.
When you take the time out to ask yourself these questions, you'll know how to decide if an investment opportunity is for you.
Bonus tip: If it seems too good to be true, it probably is. Anyone parading opportunities that promise 'unbelievable returns' or promises to help you 'make fast money' is most likely lying. Shine your eye 👁️
We don't only provide money tips; we're also determined to help you implement them. Our team at gomoney has created a platform with tools to help you track your payments, create and enforce payment plans, spend and save easily, and much more!
To experience hassle-free banking, download the gomoney app and open an account on your phone in 3 minutes and start enjoying banking you deserve 💙