Videos Financial Planning for Beginners : Tips & Factors for Investing Money Admin 8 months ago Transcript 0:00 So, how should you invest your money? Well, there’s a number of different factors that 0:04 we need to consider. First of all, we need to know how old you are, because someone who 0:09 has a longer time frame of investing is going to be more aggressively invested that someone 0:14 who has a shorter time frame. Also, how comfortable are you with fluctuations in the market, that’s 0:21 another big determination. What are your goals, and how aggressive are those, and are they 0:27 realistic? And, what are your opportunity costs, meaning, if you have a twenty percent 0:32 credit card balance it doesn’t make sense to invest money and possibly only earn ten 0:37 percent. So, I would suggest before you even start to invest to make sure all of your high 0:42 interest credit cards are paid down. Now, once you have a good handle on your debt I 0:50 would start out small. There are many easy ways, through your bank and through an investment 0:55 firm, to invest money every month. It just leaves your account and invests in a mutual 1:01 fund. So, for example, if we take twelve months, and every month you invest, so for example 1:08 if we take ten months, so for example we take twelve months, every month you invest $100.00 1:16 and that $100.00 automatically goes into an investment mix of your choice, you’ll be able 1:23 to capture the highs and lows and invest in an average rate, and at the end of the year 1:28 you should have more than $1,200.00, if the markets are going up. This is called dollar 1:34 cost averaging and it’s a good way to minimize your risk when you’re investing. Now, once 1:40 we determine how much you can invest each month, make it a consistent plan, make it 1:45 something that’s achievable, that you’re able to do without worrying about being over extended. 1:58 A good reference point in savings is 10% of your earnings, if you can do this, this is 2:03 a good start. Now, in terms of where to invest your money, stay turned for the next segment 2:10 and we can discuss that.