Investing can help you maximize the amount you earn, increase your wealth, and allow you to have more financial security as you move into your retirement years. According to a study, more than half of American households have some share in stock market investments, while only a small section (around 14%) of American people invest directly in individual stocks. Market specialists observe that merely 50% share in the market is through their retirement accounts. If you are not investing yet, Jared Ekola talks about investment in the stock market. There are some tips you should know before diving into the stock market.
Jared Ekola is a Businessman from Los Angeles, California, and has a keen interest in investing in index funds for long-term growth. Jared currently follows and reads the online blogs of some of his favorite investors. Spend less than your income, invest surplus and avoid debt. He also talks about the investment of money and the monetary operation of MMT (Modern Monetary Theory). He has explained three investing tips for beginners mentioned below.
Audit your finances before you start investing:
Before taking the risk of investing your money in the stock market, you must have a plan and ensure that you are financially stable.
Jared Ekola explains the below guidelines to consider before you get started:
- First, Identify your financial goals – anyone invests because he wants to start putting money away for the future. Whatever the goal may be, the initial step is identifying it, and then quantifying it.
- Understand your cash flow- It’s crucial to know how much money you earn every month and how much you spend. In this way, your savings and your investments are consistent.
- Must have an emergency fund- Make sure you have a rainy-day fund or cash reserve that you can easily get into before putting all money into the market. This cash will help when you can fall back on it if needed. Such as; if you lose all your money or job, or else when you need to fund an unexpected expense.
- High-yield savings accounts are a great vehicle for building an emergency fund because they are not subject to market inflation. They come with zero risk, so you can always count on your money and feel safe for the emergency.
- Most Americans participate in the market through their retirement accounts because Retirement accounts provide tax benefits and an easy way to contribute.
- While investing through your employer’s retirement plan is the easiest way, not everyone has access to this. If you’re on the list of those people, consider opening either a Roth IRA account or a traditional account, So that you do not lag in saving for the future.
According to Jared Ekola, Investment accounts offer higher interest rates as compared to traditional savings bank accounts, the more you invest the more you earn with time. Considering these brilliant tips by Jared Ekola, before investing in the stock market, surely can help you plan and enjoy your retirement life with your present investment.