February 21, 2022
Today there are more ways than ever to invest and grow your savings. Learn where to start with online investment platforms and how to find the best investment strategy for your budget.
Make sure to keep your long-term budgeting goals in mind when investing and set aside a practical amount to put on the market. Most financial planners will advise saving or investing 10% to 15% of your annual income. The benefit of any investing is compound interest, which means your investment returns start earning their own return, increasing over time. The stock market comes with ups and downs, of course, but starting earlier gives your investments more time to grow.
When opening an investment account, you will need to decide if you want to invest in a more aggressive or laid-back style. This will guide the stocks you choose for your portfolio and how often you buy and sell them. A great place to get started are investment apps which are accessible to all levels of financial experience. Acorns, Webull, and SoFi Invest are some electronic trading platforms that can help visualize your investment portfolio and review options for long-term savings.
Day trading, or a more involved investing style, can be more time-consuming since it requires multiple trades a day to gain a return on your investment. Use research on companies to guide your trades and keep in mind that it may take more experience to benefit from this strategy. A less risky approach called position trading invests in stocks for the long term with an expectation that it will appreciate in value.
Want a more traditional approach to saving? A savings or money market account may be better for your needs. Citizens First Bank offers a savings account where you can store your money securely while earning interest. Unlike investment accounts, they are federally insured.
For more budgeting and financial resources visit your local Citizens First Bank in person or online. Our experienced team can help find the right strategy for your investing plan.