How To Begin Investing

Do you want to become an investor?

To begin investing, write down your goals, your age, and your true financial condition. Also, record your reasons, the amounts, and where you want to invest. Then follow these steps: First, Understand your Finances. In Proverbs 27, we read, “Be sure you know the condition of your flocks, give careful attention to your herds, for riches do not last forever…” Only invest available funds in what you truly understand. Next, Understand the Difference Between Saving and Investing. Establish a budget that makes allowance for all your obligations, including giving, and funding an emergency savings account. Then you will know what you have available for investing. Your savings accounts should not be placed at risk. In fact, investment funds are subject to loss but at various degrees of risk. Depending on your age, we at Crown recommend that you begin investing about 5 percent of your income, but here’s the important part – be prepared to lose if it is placed in the stock market.

Finally, Understand and Practice Diversification.  Over the course of a lifetime of saving and investing, your money will grow, but if you expect to retire soon, the stock market may be too volatile short term. Diversification is the only safe strategy to protect yourself from the rise and fall of markets. Research wisely to make knowledgeable, prudent decisions. Once you feel comfortable, start small, and enjoy this vital step of stewardship.

And if credit card debt is preventing you from investing, let Christian Credit Counselors help. They’ll create a debt management plan specifically for you. For more information call the Crown Helpline: 800-722-1976 or visit online at crown.org/ccc