You know what it is. That's right. It's time to talk money with your money nerd and financial coach. Now tighten those purse strings and open those ears. It's the Money Talk with Tiff podcast. Hey. Hey. And welcome to another episode of Tiffany's Take, where I answer your money questions right here on the podcast. So if you have a question that you want me to answer, go to www.moneytalkwitht.com. ask
Tiffany and I'll be more than happy to answer for. So for the purposes of today's episode, just following up on last week's episode, when we talked about the pros and cons of investing, I had some people reach out, like, okay, Tiffany, where do I start? What are some tips for beginners when it comes to investing? So that leads me to this episode. So let's hop right in. Number one, make sure you set clear financial goals. So before
you dive in, take some time to determine what you're trying to achieve. What are you investing for? And I kind of hit on this with last week's episode. Don't just do it because it's trendy. Really figure out, what am I doing this for? So are you saving for retirement? A house? Just looking to grow your wealth, have some assets, what is it? But knowing your goals will help guide
your investment decisions. Because if some, if it's something like a house, that's kind of short term, so your investment strategy would change versus retirement. You know what I'm saying? So make sure you know what you're investing for. Number two, understand your risk tolerance. So everyone has a different comfort level when it comes to risk. So really think about how much risk you can handle without losing sleep at night.
So depending on this answer, that will influence your choice of investment vehicles, Whether you choose to lean towards the bonds, stocks, real estate, whatever it is, you have to know what your risk tolerance is because you don't want to hop in. And then every second of every minute you're checking to see how it's doing because you really are uncomfortable with it. So understand what your risk tolerance is. Also understand what your risk capacity is. So risk capacity is how much money do you
have to invest in this thing? Because that's another thing that people can lose sleep over. So understanding your risk tolerance and your risk capacity can help you make better investment decisions with what fits with your situation. Number three, diversify your portfolio. So make sure you don't put all your eggs in one basket. I kind of hit on this with the last episode, but spread your investments across Various asset classes, various investments that can help you minimize your risk.
So consider a risk of stocks, bonds, real estate, maybe some crypto, whatever it is you want to do. But make sure that you're investing in multiple different things. Don't just go all in on crypto or all in on real est, all in on stocks. Like have a variety of all those things that I talked about last episode and that'll help you overcome some of those risk factors. Number four, start small. It is perfectly okay
to start with a small amount of money. Many platforms do allow you to begin investing with just a few dollars, which is completely different than it was when I first started. I had to save up $3,000 back when I started investing at like 19 in order to open an account. Now you can open an account with nothing. So make sure to remember that you can start small. And what I like to tell people is just do an automatic deposit
every month. So what I do is I do a small automatic deposit to one of my portfolios every month and it comes right off the top on the first and I don't even miss it. So if you do it like that, it's a little easier to do. And then as you become more comfortable and knowledgeable, then you can gradually start increasing your investments. Now, also keep in mind caveat here. Even though the money goes into the account, it doesn't
necessarily mean that it's invested. So when you make a deposit, usually it goes into just, you know, like a money market account, like a savings kind of. And so you have to actually move that money into the investments that you want to have. So don't think just because it's going to whoever you decide to use, Fidelity, Charles Schwab, whatever that is, automatically getting invested. It's not. So make sure you go in and actually put that money in some investment. Number five, make sure you keep
continuously learning. The investment world is always evolving, so make sure you stay informed by reading financial news, listening to podcasts like this one, or even taking some online courses. The more you know, the better decisions you'll make. I've learned about investment over the years, you know, some of it on my own. So like reading magazines back in the day as magazines, right. So Kiplinger, personal finance, Money magazine, things like that,
reading books. And then I also took class when I was in my master's program, I took some investing classes, which helped me learn even more that I didn't already know. So just always continue to learn. You are always a student as you live in this world. So make sure you treat it as such and keep learning. Number six, keep an eye on market trends. So while it's important to stay informed, avoid making impulsive decisions based on short term market movements.
Like I said last time, the market is constantly changing. It don't matter what market you're in, whether it's real estate, stocks, bonds, crypto, whatever, it's constantly changing. So understand what the trends are and then that can help you identify opportunities and threats to your investments. So that's why, you know, sometimes when I'm looking at, okay,
what is the Fed doing? Or I'll do an episode on, you know, the interest rates and you know, changes in interest rates, that's for a reason because it does affect many different things that you may or may not realize. So just keep an eye on that type of stuff so that way you can have some foresight before things either go good or go bad. Number seven, be patient and think long term. So investing
is not a get rich quick scheme. Contrary to popular belief, you can't just get in, make a lot of money, get out. I mean there's certain things you can do that, but look, fast money don't really make money. I'm be real with you. Usually people lose in the long term when it comes to that. So just start thinking long term. It does require patience and a long term perspective, but I promise you it's way better than trying to time the market
and trying to get rich quick. Compounding returns over time can significantly grow your wealth, but it requires you to stay the course even during market downturns. I kept investing all throughout Covid, I kept investing all throughout, pretty much everything that I've encountered so far. And
one thing about the market, it always goes up. So regardless of if it dips down for a couple years or a few months or whatever, if you look at a diagram or a graph of the market over time from the inception of the market back in the 20s, I do believe, don't quote me, you will see that it is still on a constant incline. So don't let those little downturns deter you and just think long
term. And honestly, just don't even look at it like once you invest, you know, only look at it periodically, don't try to look at it every day because it's going to be an emotional roller coaster and you really don't have to. So anywho, with that being said, number eight is seek professional advice if needed. If you're uncertain, you don't feel feel comfortable, consider consulting with a financial
advisor. They can provide personalized advice and help you craft a strategy that aligns with your goals and risk tolerance and risk capacity. For me, I do not manage investments for people, but I'm more than happy to teach you more. You know, on a one to one basis for you to do on your own. Completely up to you, but those are the
most important things to get started with investments. And I'll also be sure to put my YouTube video in the show notes that I did a few years ago on investing as well because that would be helpful. So if you have a question, there's probably someone out there that has that exact same question and I'll be more than happy to answer. In the meantime, be sure you subscribe, rate, review and share this episode if it was helpful for you, and I will see you next week. Bye. Thank you for listening,
joining and being a part of the Money Talk with Tiff podcast this week. You can check Tiff out every Thursday for a new Money Talk podcast, but if you just can't wait until next week, you can listen to previous podcast [email protected] or follow TIFF on all social media platforms at Money Talk with T until next time. Spend wise by spending less than you make. A word to the money wise is always sufficient.