Do you need to sharpen your financial IQ? Here are some ways to become financially savvy.
By: Amanda Anderson
The more you know and understand money, the better off you will truly be in your financial future.
You have probably heard time and time again that you should invest your money. If you are just getting into your career, I am sure you have thought about putting enough money away to retire in your later years. There are so many different investment options, and it might be somewhat confusing to figure out which investment options are best for you. Although the economy is not in the best condition for seasoned investors, this is a great time for beginner investors to consider starting their own investment portfolio.
In order to make smart decisions regarding the investment of your income, you will need to learn more about finance. You may have heard of the stock market, however, you may not know how to select the right stocks. Perhaps your bank offers Credit Deposits, and you may not be sure which account would work best for you investing needs.
Here are a few simple way to sharpen your financial IQ and step into the world of investing.
1. Take a trip to the local bookstore or library
There are many books out here that will break down the many forms of investing in ways that will make sense to beginner investors. These books will explain all the options available to you and give you some idea about which options may work the best. It is imperative that you choose a book that was written by someone who has many years of experience as a financial expert. Do a little research and find out which books seem to have worked best for some people you know.
2. Go to a financial seminar
Financial seminars are a great way to get financial knowledge from the experts first hand. Most seminars are similar to college courses, but will usually last the entire day. In some seminars, attendees will receive free information to take home and some might offer additional courses to take after completion of the seminar. If you find a great speaker, you will learn a lot from attending one seminar. Ask around and find out which speakers have the best reputations.
3. Get a mentor
If you are new to investing, it would be smart move to build a relationship with someone who has a lot of experience in the various forms of investing. Your mentor does not have to be a financial guru, but someone who has real life experience when it comes to investing. You can even join an investors’ organization or group in your community and build contacts there. Ask someone to guide you and show you what they know.
4. Learn from your mistakes and don’t repeat them
As a beginning investor, you will make some mistakes. Although having a great mentor can minimize the number of mistakes you make, mistakes are just part of investing. The key to finding success when investing your money is to learn from the mistakes you do make. Keep a financial journal and document any mistakes. If you keep a record of your errors, it is less likely that you will make the same mistake later on in your investing pursuits.