Yahoo Finance Get Started With Stock Investing by Doing One Thing, Says Money Expert Tiffany Aliche
Buying stocks can diversify your investment portfolio and put your money to work to reach your long-term financial goals. You can buy and sell stocks easily, thanks to the availability of apps like Robinhood and Webull, which allow you to take an active role in your investments.
But one of the challenges of getting started with stock investing is deciding which stocks to buy. Tiffany Aliche, “The Budgetnista,” provided some simple advice to help you decide what to invest in.
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Become a Stock Watcher
Aliche encouraged her Instagram followers to become stock watchers by creating a stock watch list. “Think of it like window shopping for stocks — you’re just keeping an eye on companies that catch your attention,” she explained.
Your stock list makes it easy to monitor the companies you might want to invest in. Since you can grow your list gradually and watch the companies’ performance over time, deciding on which stocks to buy doesn’t become a big decision requiring lots of research. Your list gives you a starting point of potential options.
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How To Build Your Stock List
To get started building your list, Aliche suggested considering where you currently spend your money. “Whether it’s your favorite coffee spot or the car you drive, those trusted brands could be great candidates for your Watch List,” she explained. “You already support them-why not consider owning a piece of them?
As you create your watch list, you can gather information about the stocks, do some research and decide which is right for you.
Determine Your Investment Budget
It might be tempting to put as much money as possible into the stock of a company you support and believe in, but just like any purchase, it’s important to create a budget. Before you make the decision to buy stock, it’s a good idea to take a careful look at your finances and decide how much you’re comfortable investing.
Remember, there’s always risk when you buy stocks, so while investing could make you money, you could also potentially lose that investment. Make sure that you’re only investing money that you could stand to lose.
To start, review your income and create an emergency fund that covers at least a few months’ worth of your major expenses. If you have any high-interest debts, like a car loan, you may want to pay that loan off before you buy stock, so you’re not continuing to pay large amounts of interest.
Finally, take time to create a budget. Determine how much income you have each month, how much you’ll need to spend on living expenses, what you need to put toward building your emergency fund and how much you have left over to save up to invest.
Investing is a long game, so take your time and invest carefully. If you’re new to investing, it may be a good idea to reach out to a professional for help and advice as you get started.
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This article originally appeared on GOBankingRates.com: Get Started With Stock Investing by Doing One Thing, Says Money Expert Tiffany Aliche
