Strategies for Novice Investors
Kiplinger's Personal Finance|December 2024
AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.
JANET BODNAR
Strategies for Novice Investors

I distilled my advice into a series of tips, tricks and hacks that would help all young people take control of their spending and saving (see “Money Smart Women” in the March 2023 and May 2023 issues). This month, I’d like to close the loop with my best strategies for novice investors.

First, some caveats. Before you even think about investing in the stock market, take stock of your overall finances. For starters, you should seed an emergency fund that will eventually cover at least three to six months’ worth of your expenses. Stash that money in a safe place, such as a bank account or money market fund, where you can get your hands on it in a hurry if necessary. The same goes for money you’re saving for short-term goals, such as next year’s vacation or a down payment on a house. You don’t want to risk money that you’re going to need in fewer than five years.

And getting rid of high-interest-rate debt should be a top priority. Paying off the balance on a credit card that charges you, say, 20% is the equivalent of earning 20% on your money.

But for longer-term goals—notably retirement—the stock market is the place to be. And the younger you are, the more you should tilt toward stocks to take advantage of your greatest asset: time. The time-tested route to investing success is to follow these four steps: Start soon, start small, invest steadily and keep it simple.

Keep it simple, part 1.

この記事は Kiplinger's Personal Finance の December 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Kiplinger's Personal Finance の December 2024 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

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