If you haven’t invested before and you are looking to get started, it can be tricky to work out where to begin. The kind of investment you make will also depend heavily on how much you have to invest. Let’s say we are at the beginning and you have just £100 to invest – where do you put it?
Whilst scrolling through Twitter one day I saw a wonderful response to this query which really pinpoints the kind of mindset you should have as an investor. The response was from Preston Pysh, who runs The Investors Podcast with his co-host Stig Brodersen (I am a big fan of the podcast and would highly recommend it for anyone interested in investing!). In response to the question “Where should I invest $100?”, Preston simply responded “Books”. It’s probably not the response the person was after but it is great advice. There are two main points I took away from this simple but excellent response.
Like with anything, the more you educate yourself on investing, the more success you are likely to have. There are many different types of investing and before you start you should find a strategy which works for you. With the amount of free content available on the internet you may not even have to spend much, but it’s well worth paying for some good books too. Preston and Stig provide executive summaries of every book they cover on the podcast if you need help choosing a book. Put the time in to learn as much as you can and you will reap the rewards. If you try to take shortcuts then the lessons you learn could cost a lot more than £100. Successful investing is very much about patience, so take your time.
If you are wondering where to invest £100 then it’s likely that you don’t have a huge amount of investing knowledge. That shouldn’t put you off though, it was the same for every investor at some stage. If you are interested enough to ask the question then you should be interested enough to build your knowledge. When it comes to making an investment, perhaps by buying shares, make sure you are comfortable with the amount you are investing. If you are worrying about it whilst laying in bed at night then you have probably invested too much (at least for now). Start small and build it up as you go. Good investments will constantly come around so don’t worry about “missing out”.
Before you start investing your hard earned money it is important that you first invest in yourself. Educate yourself and you will get better results. This goes for anything you want to be better at. Look for people who are already successful at what it is you want to do and study them as much as you can. There are reasons they have succeeded so find out what they are!