Thinking about opening an investment account? Nowadays, there are numerous different accounts and options to choose from. Whether you’re starting out with only a little capital or a significant amount of money – everyone’s main goal is increasing their initial investment over time.
Want to know how to make money investing? Keep reading!
Good Investing Practices
Investing is a great way to build up your savings. Regardless of how much money you are starting with, there are some best practices that you should always follow.
Make the Decision to Invest: The sooner your start, the more your money can grow. Gone are the days when investing was intimidating, complex, and high-risk. Many of today’s investment accounts offer low minimums as well as minimal fees. With managed investing platforms like MoneyLion, it’s easier than ever before to get started as soon as you have a bank account. You could even think of your investment account as a higher-return savings account.
Choosing the Right Investment Platform
Your investment platform should guide you through the investing process. It should show you how to make money investing by helping you develop a strategy and diversified investment fix.
Your platform should be easy to use and accessible, as well as give you an idea of what your returns could be based on the level of risk you take on. For example, MoneyLion helps you through the process, recommends a personalized diversified portfolio, and lets you personalize your investments if you’d like!
Make Consistent Deposits
Depositing money into your investment portfolio should be quick and easy. When you have a linked account in your MoneyLion App, all you need to do is turn on Auto Invest and you can be growing your funds even faster! Auto investing is proven to build wealth over time, in all kinds of markets (hello, COVID-19 volatility).
Although quick wins can happen in the investing world, day trading and high-risk/high-reward trading is better left for those with larger risk tolerances. If you are looking for your investments to feed your nest egg, the best strategy is keeping your money put.
Negative Investment Practices
Whether you are new to investing or have been contributing to your portfolio for years, there are some mistakes that can easily slip through the cracks every now and then. Investing is an ongoing process.
As long as you are willing to learn from your mistakes, you’re on the right track. That being said, make sure to watch out for these negative investing practices that can set you behind on your goals.
Being Impatient With Your Investments
It’s not likely you will double your money in a week or two. The best investment strategies are those that take a long-term approach. Investing requires patience, commitment, and some degree of stamina.
Even if your investment is performing poorly now, it’s likely to recover and make gains if you’ve invested in a sound portfolio. Always keep in mind your long-term goals when investing.
Withdrawing Your Returns
Suppose you’ve held onto your portfolio and made regular deposits. Over time – and depending on market conditions – you’re bound to see a return on your investment. It’s exciting! It might be tempting to sell your position and cash in.
However, selling your position actually limits your future growth prospects. The surest way to keep growing your savings is by staying in the game for the long-haul and maximizing your returns through compound interest.
Not Diversifying Your Investment
Diversification means spreading out your investment throughout different areas so that your portfolio isn’t heavily exposed to one category. Investors use this strategy to build stronger returns over time and protect against risk.
Not diversifying your investments is like keeping all your eggs in one basket. It can be dangerous. MoneyLion offers diversified portfolios with risk tolerance levels you can customize to your comfort zone.
Timing the Market
Timing the market involves buying in when prices are low and selling when prices are high. While this may sound simple in theory, in reality, it is almost impossible to execute correctly.
Seasoned investors make mistakes and lose money when they try to predict whether prices will go up or down. Avoid this mistake by making automatic contributions to your portfolio throughout time.
Make Money Investing
MoneyLion offers managed portfolios that are well-diversified and consist of low-cost exchange-traded funds (ETFs), stocks, and fixed-income (bond) ETFs. These portfolios are ideal for someone looking to make money investing – without requiring a whole ton of research and upkeep.
You can schedule automatic deposits to help grow your money faster and personalize your portfolio with adjustable risk levels and investing themes.
Best part? There are no minimums to start investing, and you’ll never have to pay for asset-based management fees. A MoneyLion investment account is a great way to start working toward your financial future, and at only $1/month with no trading or rebalancing fees, it’s hard to beat.
Ready to get started? Download the MoneyLion app and follow the instructions to open a managed investment account.
Once you’ve put in your personal information, you’ll be asked a few simple questions that will help us designate the ideal investment portfolio for your finances. Start depositing money to your new investment account, and you’re on your way to achieving your financial goals!
Learn more about how investing with us works here.