Becoming a Better Investor in 2023
Thinking about expanding your investments and don't know where to start? Look no further! Read below for a layout that describes the steps you need to take to become a better investor in 2023.
Step 1: Defining Your Investing Goals
The key to investing is to define your goals, your investing style, and getting started.
Investing should be fun & profitable.
Understanding financial information is an important part of building wealth.
Every investor should create a monthly budget to understand how much money they are earning and spending.
The first step in building a solid financial future is to pay off all loans.
The second step is to start saving in a retirement plan (IRA or 401K).
The third step is to create a reserve fund with money that you may need for unanticipated events.
The fourth step is to set a goal of how much money you can save.
The fifth step is to learn to be a good investor.
Exercise: Create a monthly budget of how much you earn, spend, and save.
Your Financial Review List
Great Links On Investing
Step 2: Learning to be a good investor
The best way to make money investing is to invest in good companies for the long term.
Create an investment account at Fidelity or Robinhood or another broker/investment firm.
All investments involve risk & reward.
Start by researching industries & companies that you are familiar with and with products you use.
An investment advisor can help you become a better investor.
3 things you can do to learn about investing:
1) Concentrate on a few companies
2) Read everything you can about the economy, the industry, and the company
3) Ask questions on things that you don’t understand
There are different types and kinds of investors - you need to find a style that fits your risk-reward profile.
Common investing terms:
Growth Stocks vs. Value Stocks
What is a stock dividend?
Great links to articles on becoming a good investor
Links to improve your investing knowledge