Tips for new investors to kickstart the growth of a financial legacy
Editorial staff, J.P. Morgan Wealth Management
- It can feel overwhelming to invest your money for the first time, but it’s important to do so as early as possible.
- To get started investing, consider the level of risk you’re comfortable with and the amount of time you’ll give yourself to achieve your goals.
- If you decide to consult a financial advisor, make sure that your advisor is being educational rather than simply instructive.
It can feel overwhelming to get your money invested for the first time, but it’s important to do so as early as possible. So, how does one begin this process?
- Start small by examining your day-to-day routine. If you can cut back on relatively minor expenses – like packing your lunch instead of buying, for example – you’ll notice that your bank account will grow.
- Understand your budget, inside and out. What do you spend the most money on? Where can you cut back? If you don’t have a proper understanding of your budget, it will be much harder to save effectively.
- Once you’ve got some money saved, it’s time to invest.
When approaching the concept of investing, it’s normal to have analysis paralysis. Investing can feel like a big and scary endeavor, with portfolios and investors and complicated markets. It doesn’t need to be that way, though.
To get started investing, you should decide two basic things:
- What’s your risk tolerance? It can be conservative, balanced or aggressive.
- What’s your time horizon? In other words, how long will you give yourself to achieve your investment goals?
Self-directed investing is a straightforward and minimal-hassle investment option where you can choose to buy stocks of companies that you know, understand and use. For example, say you stream a lot of movies, so you have a general idea of how their products work – start there! If you’re already familiar with a company, it can make the somewhat abstract idea of investing feel more tangible.
Get up to $1,000
When you open a J.P. Morgan Self-Directed Investing account, you get a trading experience that puts you in control and up to $1,000 in cash bonus.
And finally, if you decide to invest through the more traditional route of consulting a financial advisor, make sure that your advisor is being educational as well as instructive. The right financial advisor for someone else might not be the right one for you, so you should always feel empowered to switch after doing your research.
Invest your way
Not working with us yet? Find a J.P. Morgan Advisor or explore ways to invest online.
Editorial staff, J.P. Morgan Wealth Management
