How to Invest: for Beginners
I opened my first investment brokerage account under the guidance of a corporate CFO when I was 18 years old.
I double-majored in Accounting and Finance. During college, I interned at a wealth-management firm, and professionally I have been an accountant at two, reputable Private Equity firms that invest in real estate.
I invest some of my money in the stock market, sometimes I make a trade or two on my Robinhood account, and many of my mentors manage investment funds in various asset classes.
Do any of these make me an expert investor?
Absolutely not.
What they do make me is informed when it comes to the concept of investing.
I love finance, and I love growth and success. I want everyone to participate in the capital markets in some way because that is the best way to learn how the economy really works.
It seems like everyone knows that ‘investing’ is a great idea, but it is a nervewracking experience to move money from your bank account into an unknown void of hoping for the best.
I want to break down what investing is and how to do it safely because it truly is the best way to build wealth, AND it’s fun.
What is investing?
At its core, investing is putting money into a venture with the expectation of financial gain in the future.
Some examples are: buying shares of stock, purchasing a restaurant franchise, or investing in an early-stage startup company as an angel investor.
All three of these have different levels of risk, require a wide range of funds on hand, and are in entirely different markets.
What they all have in common is that they are all forms of investment. You are not loaning money to anyone in these cases.
Instead, you are hoping that the money invested will grow at a higher rate than it would in a high-yield savings account or under your mattress.
*For the rest of this post we will primarily look at financial products in the capital markets since they are the most accessible
