Getting started: 3 smart investing habits
Practicing good habits from the get-go will help set you on the right path.
March 9, 2023
As you look to begin investing, consider these tips to help you get off to a strong start and stay on the right path:
1. Invest money you don't need today (or tomorrow).
We know that historically, the market has trended upward over long periods of time. But in the short term, it can be unpredictable. That's why it's safer to invest money that you won't need to cover your immediate needs (think your rent, groceries, car payment, and emergency savings).
Whether it's $10 or $100 left over after you pay your monthly bills, every bit counts. And by using this rule of thumb, you're still able to invest for the future without jeopardizing your current financial wellbeing.
2. Don’t put all your eggs in one basket.
Spreading your money across a variety of different investments (a process known as "diversification") can help you minimize risk. For example, by owning many different investments, you reduce the potential impact that a decline in 1 or 2 individual stocks or funds can have on the overall value of your investments.
3. Set up automatic investments.
Automatic investing transfers money from your bank account on a regular basis to make investing easy. You simply choose when, where and how much to invest, and the rest of the work is done for you.
With Plynk, you can automatically invest your money in a stock, ETF, or mutual fund.
By investing consistently, you’re putting good financial habits on autopilot and eliminating the temptation to try to “time the market” when you invest. Plus, it's one less thing on your to-do list!