Becoming an investor is a lifelong journey of learning and educating oneself to stay on top of the financial capacities to make a living as a career investor. Whether this is a side hustle, a full-time endeavor, or a career transition, anyone can start investing and make it successful for them if they are willing to put in the hard work.
So how do you become an investor? Here are some basic guidelines:
#1 Learn the trade
Starting simple is the best foot forward when you begin. You need to learn the basic rules of investing and all of these can be done by reading, listening to podcasts, taking notes, joining webinars, and just learning from the pros. Limit your risks until you get the hang of investment basics. Understand its terms, the interest rates, payouts as well as how to go about putting in your money in them. Understand the pros and cons of investing in stocks, mutual funds, bonds, fixed income security as well as real estate markets.
#2 Raise enough capital for investing
You don’t need to be extremely rich to invest but you do need to acquire a substantial amount of capital to make wise, fruitful investments. Your capital will be dependent on the investments you want to make. For instance, you need $1,321 to purchase 1 share in Google and Apple is valued at $126 per share. So that’s one of the ground rules you should know- how much do the shares cost and how much capital would you need to raise.
Again, starting simple is the best way forward. Save money aside to accumulate your capital, create a budget for your expenses, track how much and how long it would take you to reach your desired capital to make your first investment. Investing is also about managing your finances properly.
#3 Get advice and help
Seeking the advice of financial advisors is always a good move. Reading as much as you can, joining Facebook groups, Reddit discussions and even watching YouTube are all relevant and ideal sources to get information. However, one thing to be wary of is a financial advisor that tells you to invest in specific companies and those that push you to take part in risky investing behavior. Advisors who do this usually receive commissions and this is considered an illegal practice. You can also subscribe to newsletters from Teeka Tewari.
#4 Consider working in finance
It helps to get a job in an investment firm or some form of investment or financial setting where you can get your feet dirty, learn the ropes, get accustomed to the many different financial terms and jargon, and build your network. Take on an entry-level job as a financial auditor, financial analyst, or tax associate.
#5 Make trading stocks a side hustle
Instead of making it your full-time career on the get-go, consider doing it on the side. Keep at your regular job while you learn more and more about investing on the side. Start by investing in stocks that are less risky such as blue chip stocks from Google, Disney, or Microsoft. These stocks are solid and are guaranteed to give you a good return on your investment.
Remember that starting simple and small is the best way forward and one of the best ways to build a portfolio as a career investor.
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