22
Jun
If you're new to investing, starting small, even with just a few dollars each month, can help you build confidence and familiarize yourself with the process. Learn the basics now, and you'll be on your way navigating the investing world.
Know the types of investments
Investors have a variety of asset types to choose from. The most common are:
Steps to start investing
If you’re new to investing, here are four steps to learn before crafting your portfolio:
1. Set clear investment goals
Similar to saving, identify what goals you’re investing toward, such as retirement, education or generational wealth. Clear goals can help you determine your time horizon and how much risk you might want to take — not to mention motivate you to keep at it.
A typical portfolio might include a mix of high- and low-risk investments. Risk is part of investing, so it's important to determine your risk tolerance level and align your strategy accordingly.
2. Determine your budget
Review your income, regular expenses and emergency savings stash to decide how much you can comfortably commit to investing regularly. Even small contributions can make a difference when made consistently.
3. Choose an investment strategy
Decide how hands-on you want to be and select a mix of investments that fits your risk tolerance and timeline.
