Financial education is the best way to invest in yourself for long-term success. Here are our top tips for turning yourself into a master of the markets and investing.
Are you interested in understanding and learning more about your personal finance and investing in your future?
If so, you aren’t alone! Personal finance is a topic that an increasing amount of people realize they need to develop a better understanding of. A study on ‘Generation Debt’ found a disturbing increase in debt amongst teenagers in the United Kingdom. This massive increase is causing schools across the country to consider how they will help combat this issue. Nobody particularly wants to have debt or to be living outside of their means. One of the ways that you can increase your passive income is by investing; if you choose assets that carry a lower risk, then you can create a reasonably low-risk passive income for yourself that may support your financial goals.
There are many great learning options online; you can find free and paid courses with a quick internet search that cover things like the basics, all the way through to expert trading. There is absolutely no shame in undertaking in one of these courses; everyone has to start learning somewhere.
Whether you’ve taken a course or not, there are many great ways to learn about personal finance. Read more to learn how to invest in yourself by staying educated about the financial markets!
Read/Watch Financial News Daily
You can learn finance by reading and staying on top of recent news and developments in the financial world. With the ever-increasing prevalence of the internet in our everyday lives, this has never been easier! All the financial information that anyone could ever possibly need is moments away at the click of a button or the tap of a phone screen. The internet also allows you to peruse a variety of sources and assess how bias affects their reporting, and whether or not they are a source, you trust. Once you have perfected this, you may find yourself coming back to a few trustworthy, unbiased sources, and they will become your staple information. It is essential, however, not to become complacent, and to keep checking out the factuality and bias of your chosen sources.
BBC’s Your Money is a website that is devoted to personal finance and investment news. American news sites like CNN, Fox, and NBC also offer helpful websites with information that impacts stocks in the United Kingdom and around the world. These are great places to start, as they are designed for mainstream users. They are reasonably straightforward to understand and to use and give you the basics of information that will be useful to you. They are also large, reputable sources, and therefore are unlikely to give information or advice that is too far biased in any direction. It is important to supplement these sources with smaller, more independent sources to ensure that you see both the forest and the trees.
Investing in the stock market is forward-looking, so you must have a good sense of where businesses are in their operations and where they may be headed in the future. One good way to research this is to look at businesses’ own websites! Of course, you should take these with a pinch of salt (and external research) as they are likely to be quite optimistic, but they can be a great place to start developing your understanding of a company’s next move. Like with stock information, you should compare this with less biased sources to see the full picture. If you are based anywhere in the United Kingdom and interested in investing in a Public Limited Company (PLC), then it is also fairly easy to access the financial information of the business you are interested in. You can then use this to determine how stable they are and whether they are growing or shrinking.
Speak to Experienced Relatives and Friends
You should learn about investing basics before you begin to buy and sell stocks. One of the most effective ways to learn the essentials is by speaking to trusted friends and relatives about it. Obviously, they might not be experts, but it is far easier to speak to someone you relate to that can understand your particular fears or issues. They may also be able to explain concepts to you without using jargon, and things that were once a mystery may suddenly begin to make sense!
Do you have a close friend or even a family member that’s particularly savvy with their money and investments? Sometimes these individuals don’t talk openly about their finances with other people. If you have a good relationship with a friend or family member that you trust, strike up a conversation with them about their experience investing. Although talking about money can be awkward, it is important to make the best use of the resources you have around you.
If you don’t know anyone personally with a knack for investing, you could try finding connections on social media sites such as Instagram and LinkedIn. You could search for relevant hashtags, such as #investing, in order to find experts and follow them in this accessible and fun way. You might even be able to start a conversation with them! Once you begin to foster these connections, you may even find that the online community continues to offer information and advice; there is never a bad time to learn something new!
This will give you more confidence when you begin investing your own money in stocks, and confidence is akbsolutely key when it comes to making good, solid trades.
Invest in Yourself Today
Learning about personal finance and the stock market is a great way for you to invest in yourself and build wealth. Whether you are trading stocks to earn some extra spending money or to build wealth for retirement, you need to have a keen understanding of the financial markets. There are many ways to do this, and the internet means that understanding finance and investing has never been easier or more accessible! Even if you are a little short on spare time and a complete beginner, there are sources suited to every age, personality type and skill level if you put just a little effort into looking. Google is your best friend!
At Velox Investments, I dedicate myself to helping other young investors learn about the stock market and how to earn a positive return. I use the eToro System to connect with other investors that can follow my investment lead to start building wealth. I started when I was very young myself, using part of my student loan to start my investment journey. Even though it worked for me, I do not recommend using loans to start investing. It is far safer to save some money to invest, at a rate that you can afford.
You can invest anywhere between $200 and $500,000. You will also make decisions about what you will invest in based on your risk tolerance. The eToro System is a supportive community where everyone has a high level of interest investing. It’s a great place to learn more and become a savvy investor.
Are you interested in finding out more about how to invest with me on eToro? Join eToro today to learn more about my experience and how I can help you achieve your financial goals!
Thinking of Investing or Trading? Why not just copy professional traders!
My name is Joseph Moricca, I run Velox Investments and I am an Investor on eToro. I have used eToro for a number of years but did not realise the potential to make a solid return consistently until I started copy trading! If you want to find out how to make money online then read my Beginners Guide to trading on eToro. To start, Sign up to eToro through the link below and take advantage of the free demo account!
Other Useful Links for learning
- eToro Trading Academy
- Market information: The Motley Fool, The Economist, The Financial Times, Zero Hedge
Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
This guide is intended for educational purposes only and should not be considered as investment advice. The author and publisher are not liable for any losses or damages you may incur as a result of you following the advice given on this page. The etoro.com layout and content may change since this content was published.