Beginner’s Guide to Investing

Published on August 30th, 2019

Do you want to begin investing, but don’t know where to start? Utilize these beginner banking tips from Leyden Credit Union near Northlake.

 

Save First

Investing is a great way to grow your bank account value, but you’ll have to do a little work before you get started. Decide on how much money you want to invest per month and start setting aside that amount in your savings account. Save up some future investing money until you have enough to open your own investing account.

 

Invest For at Least 5 Years

Returns will naturally rise and fall over time, but it is rare for stocks to have declines that last longer than 5 years. The key is to only invest money you can afford to lose.  Invest a predetermined amount every month.  This way you’ll be able to control and manage your investments during times of decline and gain even more when your stock recovers.

 

Individual Stocks vs. Stock Mutual Funds

  • Individual Stocks: Individual stocks are used when you want to invest in a single company, and they can range drastically in prices. It is possible to limit your risk and build a diversified portfolio with buying individual stocks, but it takes time and dedication.

 

  • Stock Mutual Funds: Mutual funds allow you to buy many small parts of different stocks at once. This is an easy way to diversify your stock portfolio and is recommended for beginning investors. Mutual funds are sold with varying minimums, and they can be purchased for less than $100.

 

To learn more banking tips near Northlake, check out other Leyden Credit Union blogs!

 


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