I wrote today's post, Ten Steps to Success for New Investors, for my friend Aaron's excellent blog, Personal Finance for Beginners. As the name suggests, Aaron's blog focuses on educating those in the beginning stages of their finances.
However, the site is not only for beginners. There are many valuable principles of personal finance for all of us.
Writing this post challenged me to rethink how I might advise new investors. You see, I've been a financial advisor in some capacity for thirty years. I've worked with most of my clients for more than a decade. I would not consider any of these clients new investors.
So, it was fun to think about what I would say to someone just starting out. The article focuses on much more than investing. The first thing on the list is to encourage all of us to know our “why” before we plan anything in our finances (spending, investing or otherwise). The why, our purpose, drives the behavior necessary to have financial success. How that gets defined is different for everyone.
Some other items on the list include budgeting, the importance of an emergency fund, how to keep costs low, and many more.
The link below goes directly to the article on Personal Finance for Beginners.
As a beginner in the world of personal finance, investing can be one of the most intimidating areas to start learning and practicing. Today's post, written by Fred of Money With A Purpose, offers a holistic perspective on the role of investing in your financial plan as well as some solid fundamentals to help you get started.
Now it's your turn. Did you find principles in the post to help you? If so, what were they? How will you apply them? What was missing from the list?