“How to invest in 2022?”: I tell you how to start investing from scratch in simple terms
Recently, novice investors began to attack my personal account.
In order to answer all the questions at once, I decided to prepare a short checklist on how to start investing in 2022 and somehow protect your money from inflation.
STEP 1: BREAKING THE MYTHS
I answer the most popular questions: “Should I start investing if: no financial education / small salary / I can save only 5000 rubles per month / is the stock market difficult?"
Friends, it is important to realize that over time, even small amounts can become big capital. You can start with at least 1000 rubles! It’s up to you to decide what to end up with in ten years, with 0 in your account or millions.
The fact is that investing will get you closer to financial well-being, while doing nothing will NOT! And even my grandmother was able to understand the basic principles of investing and financial literacy.
Running headlong into the stock market, catching rockets for the whole cutlet is also not necessary. We think, then we think, we think again, and then we do. We do not succumb to panic and herd instinct, we never run after the crowd!
And yes, at least at the beginning of your journey, do not meddle in trading, options, forex and crypto.
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STEP 2: RELEASE THE BURDEN OF DEBT
Before you start investing, we close all debts, loans, mortgages.
Do not take in head to take money on credit in order to throw them on the stock market in "the right Temko for the whole cutlet." This is the dumbest thing you can do. Dozens of smart people have already burned like that.
If you decide to enter the stock market, then enter only with your (preferably free) money!
STEP 3: THEORETICAL PREPARATION
Read, read and read again! The list of books below is required reading.
We improve financial literacy and get motivated:
- Clason "The Richest Man in Babylon"
- Robbins Money. Game Master"
- Schaefer "The Path to Financial Freedom"
We study the basics of economics and work in the stock market:
- Markov "Hulinomics"
- Graham "The Intelligent Investor"
- Bogle’s The Smart Investor’s Guide
I also want to recommend three cool authors on the Internet:
- Kira Yukhtenko
- Dmitry Solodin
- Evgeny Kogan
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STEP 4: PREPARATION PRACTICAL
- We create a "safety cushion" in the amount of 3-6 monthly salaries. A "pillow" is needed in case of force majeure, such as job loss or illness.
- We define the goal (why is this all?) and the horizon (how long?) of investment. Based on the input, we choose an investment strategy for ourselves.
STEP 5: CHOOSE A BROKER
First of all, we select a broker and open an account. It is important that the broker is well known and has a license from the Central Bank.
STEP 6: COLLECT A PORTFOLIO AND INVEST
Next, we build a portfolio according to your strategy. We remember about diversification: we do not invest all our funds in only one asset or one sector of the economy.
If I were a beginner, I would invest in index funds (aka ETFs).
We invest for long-term periods and regularly. It is difficult to catch the market movement, so working with long-term strategies should be the basis of our financial behavior.
STEP 7: WE DON’T STOP DEVELOPING
We never stop! We study the market constantly! We follow the news and trends. All profit and good luck!