3 Easy Ways to Start Investing in the Market Today
I know so many people who want to start investing but they simply don’t know how to invest. Also, many people don’t know where to invest or are simply looking for ways to start investing in the market. Due to inflation, it’s been proven that if you leave your money in cash that overtime it will lose value. When talking about money, many people often bring up the Time Value of Money concept, meaning a dollar today is worth more than a dollar tomorrow. One way to ensure that your money doesn’t loose value is to invest it. Today, I’m going to share with you 3 simple ways to start investing today!
The first option you have is a robo advisor. You may be wondering what is a robo advisor? A robo advisor provides digital financial advice based on mathematical rules and / or algorithms. Robo advisors have little or no human intervention when it comes to investing. Aka the robo advisor is computer based and leaves room for no or little human touch / error.
Think of it like a robo = robot. Robots run automatically with little to no human interaction.
These highly intelligent algorithms will do the trading and hard work for you. What I love about Robo advisors is that you can put money in and forget about it. Most Robo advisors will have you fill out some sort of questionnaire to determine how much you want your risk level to be at. The will generate a portfolio based upon your risk.
The best Robo advisor I have found is with the Wealthfront. I’ve had a Wealthfront account now for a few years and I highly recommend it. The great news about Wealthfront is that you can have money automatically go over there every week. I suggest you start with a small amount like $100 then add every week whatever you can. The important part is to consistently add to the account.
The main difference between automated investing and robo-investing is that robo investing where you determine your risk level and then the algorithm trades automatically. With automated invested you choose the individual ETFs, individual stocks, or even if you want to trade along side a famous trader it’s possible.
There is more control than a Robo advisor. You can choose anything you want from individual stocks to ETF, to following someone else’s portfolio then every month you deposit money into the account automatically and it will buy automatically the stocks / funds you want to buy.
I recently just discovered automated investing made even easier with M1 finance. M1 also allows you to invest fractional, so if you can’t afford a share of Google Stock you can buy a fraction of it. This is a new platform that I’ve been using now for a few months and I absolutely love it.
M1 Finance has no fee for using them as an investing platform.
As of August 2021, M1 is offering a $50 sign up bonus!
The third and final way to get started investing in the market easily is manual invest. When you see movies about investing and people trading stocks this is the process you are seeing. You pick a stock and buy a stock, then sell the stock. It’s no different than buying a car or a purse. You pick the one you like, give them the money and in return you own a share of stock (a piece of the company).
I highly recommend that you invest in companies that you understand and know. Think of it like buying a business, would you buy this business, why or why not? Another popular route to take is to invest in the S&P 500 average return is 8%. Since the average rate of inflation is between 2-3% you investing in the S&P 500 will yield a higher return than the money lost. Not a bad investment huh?