Money Management Strategy for First Time Investors
These days you can't go too far without hearing about some new company you should invest in. New trading platforms are making investing more accessible and that's definitely grabbing some attention.
Whether it's GameStop or Bitcoin, Investing is a great idea, it’s a solid way to build long-term wealth, but you shouldn’t get started without a good money management strategy.
You're new to a very old game. That’s ok, don’t let it scare you off. Let’s level the playing field and take a look at some solid money management strategies for first-time investors and also learn when an emergency title loan can help too.
Money Management Strategy Tips for Beginners
Start With A Plan… Any Plan, Just Have A Plan.
It’s easy to get caught up in the hype. With everyone talking about investing you might find yourself feeling like you are missing the boat. Just because you’re starting out doesn’t mean you should run in blind at full speed.
So, take a step back. Remember, you’ve already made the decision to invest, and it's a good one. Now it’s time for a rock-solid plan.
This doesn’t have to be a special plan, but you need to know how much money you're working with to start investing. So, your personal money management strategy from your money management strategy for investing.
50/30/20 Budget Strategy
I always find myself falling back on this money management strategy for personal finance. Here’s the basic idea; take your net income and break it down...
- 50% for needs
This includes things like utility bills, rent or mortgage, groceries, etc.
- 30% for wants
This is the fun stuff, things like entertainment, new must-haves, etc.
- 20% for Financial planning
This is what you should invest in, but be careful, remember to consider credit obligations first.
Put your money management strategy in place right now.
You know how much you have to invest. Don’t worry about how much it is, just focus on getting started. You don’t need to have a bunch of money to invest. Online platforms mean you can buy into some investments for as little as five dollars.
Don’t Risk What You Can’t Afford To Lose
Remember, when it comes to investing, there is always some risk involved. Broad-based funds are usually a sound money management strategy for first-time investors. Funds like these pool money from lots of different investors and spread it across a broad portfolio of stocks.
Sinking all of your investment funds into one place increases your risk, so make sure to diversify your approach.
Focus On Long-Term Goals
I’m sure you’ve heard stories of people that invested and got rich overnight. Do yourself a favor, and put that notion as far out of your head as you can. Sitting down and feeding a slot machine is not a sound money management strategy.
When it comes to investing, focus on a long-term money management strategy. Finance and investment is big business in the US and that makes a lot of noise.
Don’t let yourself get caught up in those daily headlines, they only prompt knee-jerk reactions that will quickly empty your bank account.
Trading markets change every minute, every hour, and every day, get used to it. It's better to look at the markets like the changing tide. Look at the overall growth percentage before you make any big decisions.
Emergency Solutions If You Find Yourself in a Hole
Hey, it happens to everyone. We call them financial emergencies for a reason. The water heater that rusted out and needs replacing, the car repair that won't wait, forget about investing, what can you do when it all hits the fan?
Thankfully there are some options out there for people living in Utah. Title loans Utah are short-term options to help you get through the tough times.
What Are Title Loans?
Title loans are a great short-term lending option that uses your car for collateral. The best part is, you don’t have to hand over the keys. Utah Title Loans, Inc. can get you the money you need in as little as 30 minutes.
Title loans are a little different from traditional financing options. For one thing, online title loans require a lot less paperwork. That means less time and hassle for you. Getting help from Utah Title Loans, Inc. is easy, check it out…
- Visit Utah Title Loans, Inc. home page and fill out the easy application form, it's right on top of the page.
- Don’t go far, one of our dedicated team members will contact you personally in just a few minutes to get you started and answer all your questions.
- Bring your driver’s license or state-issued ID, a lien-free copy of your car title, and your vehicle down to our convenient location for inspection.
That’s it! The whole process can take as little as thirty minutes. The next time a financial emergency comes your way, you won’t have to cash in that new stock portfolio, just call Utah Title Loans, Inc. for a quick title loan today. Use these tips to help you with your money management strategy.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.