Investing your money can be overwhelming, particularly for beginners. From bonds to ETFs, dividends to capital gains, learning to invest can be like learning an entirely new language. That’s why Cristina Jaeger created herFinancialFreedom, a platform that helps to improve women’s financial literacy. Here are some of her top tips to help rookie investors build confidence and start making their money work.
Set a Goal
Get clear about what you want to achieve and what motivates you, and set clear and measurable targets such as “by [date] I want to have saved [amount].” This helps you get through those times when motivation is a challenge.
Get a Reality Check
Take a sober look at the state of your finances. Eliminate guesswork by making a list of your income, your assets and your expenses. Do you have any debts or unnecessary expenses? Do you have a healthy emergency fund to get you through a rainy day? If not, make sure you have three to six months’ worth of fixed costs saved. Then, take a look at how much you need to save and invest each month in order to reach your goal.
How does the stock market work? What kind of investment strategies should I use? What kind of risks am I willing to take? How do I choose a stock or fund? Learn from books, YouTube, podcasts, social media and “FinFluencers” and acquire as much knowledge as you can.
Define Your Investment Strategy
Are you creating a nest egg for retirement, or saving up for a down payment on a flat within eight years? Both are worthy goals, but each needs a completely different investment strategy. Once you’ve identified your personal finance goals, your risk appetite and your timeline, you can start to put together a strategy. By creating a plan, you’ll be able to stick to your strategy and keep your eye on the prize during periods of turbulence.
Whether you want to invest in ETFs, build a stock portfolio, or simply change how your MPF is invested, it all contributes to wealth accumulation. With just USD50 per month, you can start setting up an investment plan; the most important thing is to start quickly so your money has lots of time to start working for you.
herFinancialFreedom is a platform dedicated to improving women’s financial literacy and encouraging female investors. Helmed by Cristina Jaeger, it runs regular courses for women interested in learning how to invest, as well as one-on-one consultations.
In partnership with herFinancialFreedom