THINK INVESTING…

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A guide into investing in the right stock with little to nothing down.  by Nihki F

Investing isn’t just for the rich. Almost anyone can commit at least a little money to investments, keep close tabs on it, and wind up with more money than he or she started with. If you have a few thousand dollars or even a couple hundred you don’t need right away, here are some suggestions on how to make the most of it.

Step 1. Pay yourself first. Set aside as much of each paycheck as you can for investing, no less than 10 percent of your income. Do this even if you can offer only a few dollars at first. Even $15 per week will add up over time. Try to cut your costs of living. Don’t deprive yourself of necessities, but try to cut out luxuries, anything you don’t have to have. Some of the richest people in the world lived frugally when they first became serious about accumulating wealth. If your employer offers direct deposit, consider sending a portion of each paycheck directly to your savings or investment account. If you never see that money, you won’t be tempted to spend it.

Step 2. You should also pay off any high-interest debt at least 10 percent APR you’re carrying. This is really important in the likely event that the interest rate you’re paying on such debt exceeds the interest rate you could expect to earn with your investments.

Step 3. Before investing in any long or short-term stocks you must fully educate yourself on the stock market. Just imagine the amount of countless hours on social network with no return on your money, why not dedicate 2-3 hours a day watching the stock market.

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Step 4. Most plans will require a $50 minimum investment. Look for no-transaction-fee plans, and research any companies that offer such plans. With 

these you don’t have to deal with brokers (or pay their commissions) because you buy stock straight from the company. (A gem to hit a home run with).

Step 5. Look for mutual funds with a low-minimum purchase requirement. Some mutual fund companies will allow investors to start investing with smaller deposits, but you’ll have to agree to an automatic investment plan whereby you let them deduct a fixed amount from your bank account every month for the purpose of buying additional stock. Such investments can be as little as $25

Step 6. Pick companies that represent “value.” (Value investing involves picking stock in companies that are under-appreciated by the market and are expected to increase in value once the market better understands their worth.) This tactic will expose you to company specific risk, so don’t use it as your primary investment strategy, but focus on index and other mutual funds plus bank deposits.

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Start investing today, and change your life. I believe we are all born into circumstances, however we can’t let that dictate our financial destiny and freedom. Invest in yourself your future depend on it!

Written by Nihki F for Mogul Media TV

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