Why you should start investing and the three golden rules to make it work

Want to beat the pathetic interest paid out on many high street accounts - and turbo-charge your money for the future?

then it’s time to dip your toe into the stock market.

you’ll be swapping the relative safety of an ordinary savings account for the stock markets — and to the novice investor this can seem fraught with danger. but it doesn’t need to be.

Don’t

Forget To Spread Your Risk

Generally, investing means using your money to back something which you think will give you a profit.

Most simply, this means putting your money into shares issued by companies that are listed on the stock market. but with all investing there is a risk. it is for this reason that buying shares in just one company can be risky. that’s why many investors tend to hold shares with investment funds. these put your cash into a basket of companies, thereby spreading the chances of share price rises and falls. before you start, you need to ask yourself why you want to invest. is it a rainy day reserve? or are you hoping to build up a pot of money to supplement your income in retirement? the answers will help you figure out where to put your money - not least because you’ll know how long it will be invested for. as a rule of thumb, the longer you can keep your money tied up, the more risk you can afford to take. if you suffer steep or sudden price falls, being invested for longer means you give your cash a greater chance of recovery. if this all seems a little daunting to deal with on your own, then help is at hand. if you would like to have a chat about how to make your money work harder, then give me a call on 965 704 338 or send an email to: Contact@seagateWealth.es

What is your prime target?

Don’t be over-zealous take it steady to start with and don’t be tempted to tinker all the time. if you’re over-zealous, this could lead to you panic-selling your funds if they’re not doing that well in the short-term.