Making sense of what you want to do with your money.
1. If you’re going to invest (which you should), buy inexpensive, diverse, mutual funds. This will limit the risk whilst giving you the greatest shot at a good return.
You don’t always have time to manage your investments and whatever life throws at you all at the same time. This is why it’s important to have your money managed professionally by someone who does this full-time. Wouldn’t it be nice to know that your money is constantly being watched, maintained, and used to plan your future wealth?
Diversity is key to surviving the risks associated with the stock market. Knowingly or not, investing yourself could lead you to owning a one-dimensional portfolio, the most risky of them all. And while there are plenty of success stories associated with people putting all their eggs in one basket. There are ten times as many instances of people who have taken the risk and fell flat on their face.
2. Save a small amount of money, even if it seems insignificant at the time, it will grow.
Putting money aside can seem logical for obvious reasons, but a lot of people (including myself) don’t seem to have enough money to save. Generally speaking, most financial experts will advise you to save 10-20% of your income. This number is most likely extremely high for most people, which is why I went ahead and modified it. Instead of looking at percentages, take out two expenses you don’t need (such as beer, snacks, etc…) and use that money to be put into a savings account for the future. This type of responsible spending will guarantee you have something to fall back on for the future.