3 Financial Tips for New Investors

Investing can be confusing when you’re just getting into it. Thankfully, there are tons of new ways to invest digitally, from cryptocurrency to retirement plans, so that you can grow your portfolio with ease. There are also tons of money tips online, like the ones included in this article, that can help you find the right financial path for you. Some banks are forgoing brick-and-mortar stores to keep down costs and offer better rates, and you can access your entire portfolio from your phone and keep an eye on it on the go. Here are three great tips for new investors. 

1. Determine Your Risk Threshold

New ways to invest, like cryptocurrency, have a reputation for having significant returns quickly. But these types of investments are high-risk, and you could potentially lose a large portion or all of what you put in. The stock market also contains tried-and-true stocks as well as newer, promising companies that could gain value more quickly. Retirement accounts like a 401k are low-risk with consistent gains, but you have to leave the money untouched until you reach a certain age. Take some time to compare your options and determine how much risk you are willing to trade for a potential reward. 

2. Open a Savings Account

Not only do you want to look at starting investment accounts, but you want to make sure you have a savings account that will cover all of your expenses for several months in case of an emergency. When you keep your savings account funded, you won’t have to touch your investments when you get into a tight spot. This will keep your invested money where it should be, gaining in value. Lots of savings accounts offer small interest gains as well. 

3. Get Clear on Your Goals

How you invest should be specific to you and what goals you want to achieve. If you want to save money for your children’s future college funds, you want a substantial emergency fund just in case you need to hire a car accident lawyer or need to make repairs on your home; for example, you will want to make different decisions than if you’re looking to increase passive income for yourself. Think of what your long-term goals are, and go from there. 

Investing is not as hard as it seems. When you sit down and figure out your goals and budget, you can start making choices that serve you best in the long run. You can rest easy at night knowing you are taking care of yourself and setting up a great economic future.

Can Property Make You Money? Let's Explore

Many of us will be well aware that getting on the property ladder can become an essential life task that you undertake at some stage in your life. Owning your own home is a great thing for you and for your future. Paying off your mortgage and owning the asset can be a great boost to your retirement fund. However, people are looking into the prospect of making more money from property in different ways, but can it really make you your fortune? With that in mind, here are some of the ways property can make you money.  

Buying a brand new home

Buying a house is a very exciting thing to do, but actually, buying a brand new home can be quite exhilarating. The chance to have only lived in it first, but also the opportunity to make some money. There are plenty to choose from where you can choose options for the land and the home and even the type of home you may like, however you might want to ensure that they prepare for the NASCLA test when it comes to the general build side of things. The truth is, with a new house, you get the chance to make money while you are waiting for it to be built. Giving you often a bit of a profit before you even live in it. In the long term, property values do increase, but it is always a good idea to work your way up the property ladder and use the profits made from previous homes into building up your fortune in the long term. It can be a great way to boost your retirement funds and help you make your fortune. 

Buying a property to renovate and sell

Buying a property, waiting for valuations to increase, and working your way up the ladder isn’t a bad thing, but it can be quite a slow way to make some money. So a good tip is to buy with the purpose of renovations in mind. A house that needs modernizing, renovating, or even has scope for improvement in other ways such as extension means that when that work is undertaken, you get to make more money quicker as the valuation increases at a more rapid rate. Adding square footage to a property makes it bigger. It could be that you add a bedroom onto the property or more living spaces. This increases the value significantly. Even just masking cosmetic changes can have a positive effect on the price. 

Buying a property to rent out for the long term

Finally, the last popular option that allows the property to fund your fortune is to buy with the purpose of renting out to people on a long term basis. Not only do you get the benefit of the increased value over time, but you also get short term profits in the form of rent. It pays the mortgage payment and could even give you more leftover that could be banked each month.

Let’s hope that this has inspired you to consider some of the ways property could make your fortune.