You’ve heard that investing is best when you start young, but if you’re anything like I was a few years ago, it’s hard to know how to start! Well, the good news is that investing is a lot easier than you might think, and since it’s one of the most important long-term survival skills you can master, you might as well start today!
Here are a few ways to learn about investing easily and quickly:
Start Reading (I promise it’s not so bad!)
I’m not saying you have to flip through the Wall Street Journal or an Investment encyclopedia every day. That level of interest in investing will come over time, but it would be incredibly overwhelming for someone who is brand new to the scene.
Instead, grab a book by some well-known finance experts like Dave Ramsey or Suze Orman. These are usually written in a more engaging style that is relatable and fun. You can even watch YouTube videos of clips of finance experts where they explain simple things like the difference between traditional and Roth IRAs. Once you get someone to explain things in a way that is easy to understand, you’ll notice your interest in investing start to rise.
Play an Investing Game
You know how everyone loves to play fantasy football or fantasy nascar? Basically that involves reading up on sports stats and following the players. You can actually do the same thing with stocks. You can make up a game with friends or have a pretend portfolio online with a game like Wall Street Survivor.
By playing a game and following companies that you like over a specific period of time, you’ll start to notice trends. You’ll also start to develop an interest in various CEOs and the different newsworthy press that’s happening at each company of interest.
Playing an investing game is a great way to get your feet wet without actually spending any money. If you play for a few months, you’ll start to get a sense of the market and then you’ll feel more ready when it comes time to actually invest.
Talk to Experienced Friends
One of the worst things you can do is listen to the advice of people who are not expert investors. Just because one of your friends bought a stock and did well with it does not mean that it’s a good buy. It really is best if you do your own research first. That being said, it is beneficial to just talk about investing in general with other people who enjoy it. The more you talk about it, the more you’ll learn. The more terms you hear, the easier it will be to read investing blogs and newspapers. It’s also fun when you can feel like an educated adult at a party and chat about different companies. Soon enough, it will start to be enjoyable and as a bonus, incredibly worthwhile for your future.
Just like anything, learning about investing takes time and a little practice. However, by approaching it in a way that is relaxed and somewhat cautious at first, you’ll be able to make smart decisions as you gain more experience.