Personal Finance Lesson 140 Assignment
In this assignment, I will be giving 5 tips of investing advice. (Note: I am not by any means an investment professional, this is a required school assignment!)
Top 5 Investing Tips
- Diversify: This is one of the most important things to do when investing in anything. If you invest only in one stock and that stock drops, you would lose a lot of money! Diversification helps minimize your losses and maximize your gains.
- Use index funds: Index funds are an easy way to diversify, and they can help reduce transaction fees. It is less expensive to buy index funds than each of the individual stocks.
- Research: Things will change over time, so investment advice given years ago may not be as relevant today. Make sure you do your research so you know what you are getting into.
- Pay attention to your investments: This seems obvious, but make sure you are regularly checking on your investments to see how they are doing. If you need to, you can sell off or buy more assets.
- Make an emergency fund: A very important one! Set aside some cash or easily exchangeable assets, so that you have extra funds for an emergency. Make sure they are easily exchangeable, you don’t want to have real estate as your emergency fund!
These are my top 5 investing tips. I didn’t recommend specific stocks or investments, that is up to you! Personally, I would invest in bitcoin, gold and other precious metals, and stocks or index funds.
If you have any other tips you would like to add, please comment below.