Taking the plunge into investing as a first-timer can be a daunting experience.

But guess what? We’ve all been there.

Every seasoned investor was once, like you, a newbie. Ready to dip their toes into the investing game.

The good part is, there is now a mountain of expert advice and people willing to share their tips and tricks like never before.

So we have our top 5 investing tips for beginners to help get you started.

  1. Know your financial position

    Do you know your current financial position? How savvy are you with your numbers?

    Like any investment, before you start, know your current finances. Look at your savings, debts, expenses and income to get a clear indication of where you stand. This will then give you an indication of the funds you have available to invest.

    Speaking of which, you do not have to have thousands and thousands of dollars to start with.

    Start small. Reinvest your dividends and keep building your wealth.

  2. Set clear and defined goals (and stick to them)

    When starting your investment journey, set clear and defined goals from the outset.

    Grab some paper. Write it down.

    – What are you wishing to achieve?
    – Are you investing for the long term?
    – What will you do when the market dips?
    – When it peaks?
    – What is the end goal?

    Setting clear goals will help to keep your ship steady when market turbulence kicks in.

    Because it will.

    Markets go up and markets go down. Having a plan will help you to stay the course when emotion tries to creep in.

    When markets dip, there can be the temptation to sell and get out while you can – yet this is not always the wisest course of action. Knowing your end goal will help you to steer clear of emotion and stick with the plan.

  3. Research

    We are in the age of instant access to information. The amount of readily available information on investing can often lead to information overload.

    So do your research.

    Follow blogs. Listen to podcasts. Follow industry leaders and what they have to say. Read the news. Know what is happening not only in our own country but across the globe.

    Remember when the US sneezes, we catch a cold.

    Keeping on top of international markets will help not only guide your investment decisions now but grow your knowledge for the future.

  4. Diversify

    Diversification. Our favourite word.

    Put simply, spreading your assets so as to not put all your eggs in one basket.

    Basically, it helps to lower risk. If one asset dips, it can be buoyed by positive gains in another.

    Assets rise and fall at different times so spreading your investment across shares, bonds, property and cash will help achieve a balanced portfolio with a stable risk profile.

  5. Discipline

    When investing it is important to stick to the plan and maintain a certain level of financial discipline.

    There will always be temptations. That holiday. A new outfit. Dinner with friends.

    We are not saying to scrap your life of all joy simply so you can invest. Quite the opposite.

    Know your budget and allocate your weekly spending money. Know your budget and what you have left over to invest. And stick to it. No dabbling when you are short here or there.

    You will thank yourself for it when your dividends pay out!

If you’d like to take your investing one step further and would like to speak to one of our Financial Planners, book an appointment today.