Investing tips for beginners – 11 Simple and Easy to follow tips

If you seriously want that these investing tips for beginners will work for you. I highly recommend you to follow every point sincerely so that you can get much better results.

What is an investment?

Investment is an asset acquired to generate income this is what the definition of investment looks likes.

Understood, no problem let me explain let’s say you have 10000 $ left and you put that money into someone’s business here you can say that you have an investment of 10000 $ in a particular company. Generally, generating extra profit on your income by putting money into work is called an investment in simple words.

Why investment is important?

Investment becomes much more important in terms of many aspects some of the aspects are listed below 👇🏿

  • You can get the benefit of compounding
  • You can easily beat the running inflation
  • You get to generate an extra source of income
  • You can become financially free at an early stage
  • You will learn to know how money works

Myths on investing

There are lots of myths regarding investing some of the myths are busted below 👇🏿

  • Investing is too risky
  • You need to have a good amount of capital initially
  • You need to be expert
  • Buying at the right time is very important
  • Investing in the stock market is the fastest way to make money

Things to know before investing

If you are seriously going to start investing and grow your money but there is something that you have to know before investing so that as you start investing you don’t stop your investment because of the following things make sure that you must clear out all the points that I am going to mention before investing.

You should have your emergency fund

It is very important to have an emergency fund because you don’t know what is going to happen tomorrow. So that’s why you have to have your emergency fund because you don’t want to stop your investment in between because you don’t have some extra money left in your bank account. The ideal emergency fund should be around 6 -12 months it depending on your needs.

Make sure that you have insurance

Insurance is very important because you also know nowadays people have lots of health problems that’s why you have to be serious enough with dealing with health diseases.

At least have protection for yourself and for your family, basically many people get confused about which insurance to buy and many have lots of insurance and trust me guys 90% of the insurance is useless because people don’t know which insurance to have I will simplify all that insurance you need.

The first one is health insurance for your and your family member and the second is term insurance that’s it you don’t have to take any other insurance rest of everything is up to you.

Try to pay off all the debt that you have or minimize it

If you have debt, tell me how can you invest properly with a calm mind don’t you right? So try to get out of the debt first if you don’t know how to get rid of the debt you can check out this article debt management where I had given lots of tips so that you can get rid of debt easily.

Invest as early as possible

Now if you had cleared all the above points now it’s time to invest make sure that as soon as you clear all the above points don’t try to delay things you have to start investing as soon as possible.

Investing tips for beginners

Learn first then try to earn

For your basic information, the spelling of learning is l e a r n i n g when you remove that l from learning it becomes e a r n i n g. Isn’t it? I am pretty sure that most of you know about this so why don’t implement this in practical life? We know that we have to learn something first then we will earn.

So why do we directly jump into that earning part first without learning? You will tell learning what and why learning here it is important in every aspect of life whether you are in any field you have to learn that so that you can get some money out of it.

In investing you have to learn what is stock market, how the stock market works, how to invest properly, where to invest, and what things you have to keep in mind so that you don’t worry about your money. There are lots of things to learn about investing in the share market or stock market is like an ocean you have to know to generate a good amount of money whether it can be anything I am not telling that you have to know everything but at least you should know something. So first learn and then invest or earn more okay?

Know your portfolio

Knowing your portfolio simply means how your portfolio will look like means how much money you will allocate on the stock market on bonds index funds whatever it can maybe or in your own business ok are you getting my point so you should have to decide how your portfolio will look like according to that you will invest.

You can’t look out at Warren buffet sir’s portfolio and try to make as it is like him you can’t do that so try to make your portfolio so that you can invest according to that.

Don’t invest where you don’t know anything about that particular thing

Don’t invest where you don’t know anything about that particular thing whether you are investing in stocks for whatever it may be if you don’t have any idea about that particular thing you can’t blindly invest in that thing. The only result you will get by doing the losses and extreme loss might you can get profit in a short time but it is sure that you will get loss in the long term because you don’t know anything about that particular stocks you had. You had just followed anyone’s tips.

Listen one thing if you want to become rich you can’t become rich by following any other tips anyone yes it’s true. Another thing is that if you lose money by following your intuition if you will lose the chances of getting the pain will be less as compared to losing money by listening to others that will hurt you the most.

Diversify your portfolio

Diversify your portfolio I know you had heard many times by many people and I know you know but you don’t know how to diversify your portfolio okay?

I will give some examples if you have an interest in particular stocks let’s take a bike stock, second can be technology, third can be industry fourth can be a beverage company okay? This is all I had given examples this is not recommended for you.

Know your risk capacity

Know your risk capacity.. know your capacity tell me how many times you had heard about this and tell me also how many times you had followed this rule.

I know you hadn’t followed you have to stick to it my friend you can’t follow anyone who is telling you that you have to allocate 50% of your portfolio to stocks it might can work for him but that same thing doesn’t need to work for you.

It depends on many factors amount invested when the amount of period which he had to hold it for a long time or for a short time there are lots of factors involved according to his capacity. You have to know about your risk-taking capacity and how much money that you have to put and sometimes you have to keep extra money to invest all things you have to consider before putting your money in anything.

Investing versus gambling

I know you know the difference between investing and gambling, investing is something you study research about analyze it then invest your money.

Whereas gambling, simply to put your money into any company and you don’t know anything about that company this is what is known as gambling. If you know your outcome if you know what you are doing and how will your money will perform you get a little bit idea about that ok that is what investing is.

Control your nerves

Control your nerves if the market is falling no problem stick to it if you get panic and if you decide in that situation that can create problems for yourself so try to control your nerves and your emotions. You can’t react to your emotions in the market if you will do like this then you are not going to make anything in the market.

Try to understand and try to control your emotion so that you can hold them for a long time and get a better result out of them. Try doing meditation so that you can control your emotions very well.

Keep it simple and minimum

Tell me one thing if you have to manage 5 students and then you have to manage 200 students tell me which one you will go to manage properly and simply without having a headache and pressure on yourself. The first case right yes or no the first one because you need to manage a small number of students so that you can explain, understand and properly handle them right.

Don’t put all your eggs in one basket

I am pretty sure this quote you had heard lots and lots of times don’t put all your eggs in one basket means if you are allocating or buying a share that belongs to technology only one sector. Suppose the technology sector goes down in the future all the stocks which will belong to the technology sector is a probability of getting down much higher.

To prevent that you have to buy some stocks in technology, some in an automobile, or it can be on anything that you think is good for you okay so this is what I was giving example so that you can avoid getting lost in the future.

An index fund will be good for newbies initially

If you are newbies I mean if you are a beginner you can start with an index fund if you see the index fund of S and P 500 you will note that in the last 20 years the average annualized return has been around 10% which is good as compared to your FDs you will also easily manage that inflation rate near about ok index fund and also index fund is easier to understand you can go with it initially also no problem.

Have a patience

Last but not least you have to have patience my dear friends this is an investment, not gambling which will double your money instantly. In investment, there are certain steps to be followed properly so that you get a good amount of money and you can grow your money in the long term it takes time it takes times, takes time try to understand.

You can say that one who had made lots of money from the investment has lots and lots of patience that’s why they made it. For making money from the investment you have to have patience or you can say you need patience for everything.

Warren Buffett investing tips

  • Rule number 1 never loose money and rule number 2 never forget rule number 1.
  • Be greedy while others are fearful and be fearful while others are greedy.
  • When you buy a stock plan to hold it forever.
  • Most of the time the news is noise but not the news.


Where should I invest first?

Well, it’s up to you but if you don’t know where to invest first and if you want to play safe you can start with index funds.

Is it ok to invest in FD?

Big No…. you don’t have to invest in FD do you know what is the interest rate you get around 4-5% are you kidding man and do you have an idea what is inflation rate which is around 6 to 8%. How can you imagine investing money in FD? We invest money so that we can get a good amount of return on it and which can beat the inflation rate do you think that your FD is going to beat inflation no no I hope you got my answer you don’t have to invest in FD.

Can I do the investment by myself?

Yes absolutely you can do your investment by yourself but do try to research and then invest okay in a proper manner it will be much better if you do this under the guidance of a financial expert. No doubt you can do on yourself if you know about investment.

If you understood don’t forget to share because sharing is caring. 😇

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