Good Evening Ladies & Gents! Who’s ready to see some brand new drops to our store. Trust me, the Black Sheep Team has been hard at work at continuously improving the way we do things, we hope you like the things to come. For now, I wanted to take advantage of the political and economical climate to teach you guys a thing or two about investing. Its nothing crazy just a brief overview and general idea of things. So, without further ado, here’s, Investing 101: How to Take Advantage Now.
Overview of Investing 101: How to Take Advantage Now
If you have never invested before, then the idea may seem a little overwhelming at first. However, being curious about investing is a great thing as curiosity has been linked with numerous potential benefits: social, emotional, psychological, and in this case, financial. By choosing different ways to invest your money now, you can give your future self a great gift. However, before you invest, it is important to learn the basics and understand the risks.
What Exactly is Investing?
Investing is all about setting some of your money aside for the future by putting it to work for you. In other words, investing is equivalent to purchasing something with an expectation that it will have an increased value over time. Keep in mind that when you invest, there are no guarantees of how much profit you will receive in the end. The value of investment can jump around.
What can you invest in? Well, the answer is almost anything. There are several types of investments. These include shares, bonds, gold, as well as cryptocurrencies, comics, and coins. This guide focuses on two most popular ways to invest: funds and shares.
What Could an Investment Do for Me?
When you invest in a stock market, you gain access to a wide variety of assets, such as funds, bonds, and shares. The diversity is what gives your money the potential to produce a better return as opposed to cash in the long run. So, you should first decide how you want to receive this potential return – whether via capital growth, income, or a combination of growth.
If you are nearing or in retirement, then investing for income could be a good short-term strategy. By choosing funds or shares that pay bonds or dividends that pay interest, you can receive payments on regular basis to boost your existing pension or income. On the other hand, if you have more time on your side to grow your money, then investing for growth would be a better choice. Growth investments aim to increase the value of the actual investment. Growing original sum invested is the objective of a growth fund.
How Much Risk Should I Take?
When it comes to investing, you need to understand that there will always be risks involved. No investment is risk-free and when you put your money into something, you believe that its value will go up but there are no guarantees. With investing, reward and risk go hand in hand.
As a general rule of thumb, lower-risk investments tend to equal lower rewards while higher-risk investments have the potential to give you higher rewards. If you are just getting into the world of investing, then it would be a good idea to take a small amount of risk. Then watch what happens to your investment. You can always increase your risk level later if you desire. If you are not sure about how much risk you should take, then it is recommended that you consider getting a professional investment advice.
Is Now a Good Time for Me to Invest?
This is a good question to ask yourself. If you want to take advantage of the investing world now, then it is highly recommended that you create your own financial action plan as it will help you work out whether or not you can afford to leave your money to grow. You should also think about whether you have any short-term debts e.g. credit cards, loans, etc. If that is the case, then it would be best to first pay off those debts before you begin investing. Furthermore, it is also a good practice to save up to 3-6 months’ worth of expenses before you make a decision to invest. In this way, you will have a financial cushion in case of an emergency.
What’s the Best Way to Get Started?
A common way to start is via stocks & shares ISA. This is because you won’t have to pay any capital gains tax or income tax on the returns you receive. As with all tax-related things, keep in mind that the value of the benefits to you will vary depending on your circumstances. To start investing via stocks & shares ISA, select the type of investment that you would like to put your money into, then place that investment in the ‘wrapper’ scheme. This scheme protects your investments from the above-mentioned taxes.
Depending on how confident you are feeling, you can either make your own investment choices or begin your journey by acquiring a professional advice. Let’s not forget our new drop so be sure to follow our social media for the exclusive!