Top 10 Financial Tips for Teens
May 4, 2017
- Get into investing early. As soon as you get your first job, start putting a small portion away into a retirement account, such as a Roth IRA. The earlier you begin to invest, the more money you will make when you retire or cash out of the financial markets.
- Consult a licensed investment professional.
- Don’t buy all of your investments at the same time. Wait until the lowest price for a stock or the highest rate for a bond appears and then buy it.
- Buy lower priced stocks, but make sure that the low price isn’t because the company is in financial trouble.
- Always remember to keep a positive mindset when you are investing. Some stocks that you buy will not do well, but keep trying. One bad stock will not ruin your investment career.
- Always pay attention to the news and what is going on inside of the company. For instance, if some of the company’s top shareholders start to sell out of the company, then there is probably a reason.
- Make sure to diversify your portfolio of stocks, bonds and securities. For example, if you have too many stocks in one type of industry then there is greater risk, especially if the industry takes a downturn.
- When you invest, make sure that you are prepared to so do for a long time.
- When you first begin to invest, don’t try and invest in the most complex markets. Stick to areas that are a lot easier to invest in, such as mutual funds.
- In order to get good returns, be prepared to take risks. Warren Buffett didn’t make millions of dollars without taking numerous investment risks.
