Investing your hard-earned cash doesn’t always mean you have to involve an experienced (and expensive) financial planner or investment advisor. In fact, investing is a lot easier than many people think, and you don’t need tonnes of knowledge either. To start investing and start making money from it, all you need is time, discipline, and a little self-control.
Financial freedom – the ability to have few financial obligations such as loans and having enough to do what we want to do when we want to – is something which many people crave. By being smart with your money and making investments, you can soon achieve this financial freedom and embark on a better quality of life.
The trick to developing your wealth and achieving financial freedom is being smart with your money. Regularly putting money away, cutting frivolous spending and investing it in the right places are all ways you can make your money work for you.
#1: Start Saving to Get Started
If you really want to begin investing, then you have to start saving some money up. After all, you can’t invest with nothing! Saving up money takes a lot less time than you may think, however, and you can do it in small steps by putting away small amounts at a time. Even if you’ve never been somebody who likes saving money, you can put away as little as £20 per week and this will soon add up to well over £1,000 in a year.With £1,000, there are lots of things you can invest in!
Dripping money into savings over time is known as the “cookie jar approach” and it’s very effective. You can even do it online with your internet banking, simply set up a standing order to move as little as£10 from your main account to a savings account once per week. When you do it like this, you don’t even see the money going anywhere!
You can even increase the amounts you put into your savings over time if your income increases or you find that you have a little extra to spare when you start spending less. There are clever applications which can figure out how much you can afford to save, and they will even do it for you, too.
#2: Invest in the Right Places
There are plenty of options when it comes to choosing a website or asset where you can make your investments. With new websites being launched all the time, it can be very difficult to choose one and stick with it. One of the better trading websites out there is called ZuluTrade and you can read this ZuluTrade review to learn more about it. In short, ZuluTrade is a fintech company which operates a copy trading platform, enabling its users to mimic FOREX market trades made by experienced traders. Diversifying your portfolio and investing in different places is one of the best investment strategies you can use, too.
Spreading your investments so you don’t put all your money in one place significantly reduces the risk your capital is at, and it means you have a higher chance of having money invested in a market which will deliver a good ROI. The primary goal of diversification is to carefully balance risk and reward, and a diversified investment portfolio is less prone to volatility.
#3: Sit Back and Wait
Investing is a marathon, not a sprint. It takes time(sometimes lots of time), to get going and start making money. A lot of wannabe investors get frustrated and will pull their capital out when they don’t start seeing results straight away, however this is never a wise thing to do. You can’t plough your money into an investment opportunity and expect to see results overnight. Whilst this can happen, it is quite rare, and it is far more common to see returns after an extended period of time.
The key to becoming a good investor is not only knowing where to put your money but being patient and waiting when you have invested it. The worst thing you can do is get frustrated because that £500 you have invested into something has not turned into £1000 in a week. Also, don’t be put off by slight losses as these can be recovered in the long-term – losses are just a part of the game.
There are plenty of options if you want to start investing and get complete financial freedom. Thanks to the internet, there are tonnes of online markets where you and anyone else can begin with as little as £10. It’s always better to start out with more, though, and saving up over time is your key to getting off to the best possible start with copy trading platforms such as ZuluTrade.