You’ve made the choice to invest your money in stocks and you’ve even checked out what you would like to buy. Now the next question arises: ‘How are you going to get started?’
00:00 Well, that’s what we are going to go through today in this final episode of this investing video series.
00:33 #1 How Much Money Should I Start Investing With?
Make it a fix amount that you know you can miss each month and use that as your starting investment budget. Even though it looks like a small amount of money now, over time, it can grow into A LOT. Time is your friend!
01:27 #2 When Is a Good Time to Start?
I would recommend everyone to start the moment they watch this video. Don’t keep waiting for a sign you’re not going to get. Just go for it.
02:46 #3 What Investment Strategy Should I Apply?
You need to know that there are multiple methods. The two most important methods that I would like to discuss today are the ‘lump sum’ and the ‘dollar cost averaging method’.
Lump sum is the easiest to explain. The moment you’ve invested in a particular fund, you just leave it there. Forget about it. Just check it in a few years.
If this index fund just grows with about 10% per year and you re-invest the interest as well. It just grows each year.
But, if you want to make the best use of ups and downs of the stock market, there is the other method I love to use and that is ‘the dollar cost averaging method’.
You buy systematically, using a fixed amount each month.
So if you can miss one 1000 dollars each month, then use that amount to invest in a certain index fund.