7 Shrewd Investing Tips For Beginners
By michael vivar
Pull some cash from your pocket, wallet or purse. Stare at it for a few moments. Do you see it multiplying as if by magic? Without investing, money just sitting there will just sit there.
In an ideal world, every novice investor would have an experienced financial advisor with black on their balance sheet looking over their shoulder. We don’t live in an ideal world. Follow these tips when first dipping your fingers into investing.
Never invest money you don’t have. First, keep a primary bank account for everyday expenses. Then keep a savings account that is has funds matching your initial investment. Investing is gambling. Would you bet your livelihood on a roll of the dice?
If your employer offers a 401k plan with matching funds, maximize your contribution to the limit the company will match. Keep track of quarterly statements and allocate investments accordingly.
When you have sufficient liquidity to invest without an employer matching 401k, place funds in a low to medium yield mutual fund with a reputable investment company. The returns aren’t lucrative, but they’re better than savings account interest rates.
There’s a bromide, “If it seems too good to be true, it probably is.” Never put money into a venture that promises extravagant, continual returns in a short time with minimal outlay of funds. It’s almost certainly a scam.
Consider your age when putting money in the market for retirement. Those under 30 can play around with high-risk stocks. At 40, stocks with medium returns are safe. People at 50 with children might mix risks to live a full life and leave something for heirs.
On a morbid but realistic note, you can look at your genetic history and obtain DNA tests to predict your lifespan. As of 2025, $80,000/yr is required to retire comfortably in the United States without unexpected medical expenses.
Don’t panic when markets fall. There will always be a downturn for any investor with enough experience. The best way to hedge against a decreasing fluctuation is by having a diverse portfolio including stocks, bonds and commodities.
“The actual results of an investment over a long term of years very seldom agree with the initial expectation.”
– John Maynard Keynes, British economist and philosopher
