{"id":2288,"date":"2019-10-16T06:15:00","date_gmt":"2019-10-16T05:15:00","guid":{"rendered":"https:\/\/blog.sarwa.co\/how-to-start-investing"},"modified":"2020-08-25T14:52:04","modified_gmt":"2020-08-25T13:52:04","slug":"how-to-start-investing","status":"publish","type":"post","link":"https:\/\/blog.sarwa.co\/how-to-start-investing","title":{"rendered":"How to Start Investing"},"content":{"rendered":"

\"How<\/p>\n


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Getting started with investing can seem like a daunting prospect, but it doesn’t have to be.\u00a0<\/span><\/p>\n

With some careful thought and planning, anyone can get started with investing and begin building wealth over the long run. With this in mind, here are 5 simple but essential things to focus on at the start of your investment journey.<\/span><\/p>\n

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  1. Make a plan and stick to it<\/b><\/li>\n<\/ol>\n

    It certainly pays to sit down, outline your financial goals and develop a plan for how to achieve them. But it\u2019s not enough to simply develop a plan for how you want to invest. You have to stick to it.<\/span><\/p>\n

    That\u2019s easier said than done. <\/span>Markets can be volatile<\/span><\/a> and it\u2019s tempting to deviate from your plan when the going gets rough, but trying to time the market doesn’t pay off in the long run. Rather, it\u2019s<\/span> time in the market <\/span><\/i>that helps build wealth over the long run.<\/span><\/p>\n

    It\u2019s a good idea to make a <\/span>Systematic Investment Plan<\/span><\/a> (SIP). With a SIP, you invest a fixed sum each month on a consistent basis, averaging out your costs and benefiting from the power of compounding, since your money stays invested and grows over time. This approach helps you to stay on track and not deviate from your plan.<\/span><\/p>\n

    It also pays to share<\/span> your plan with loved ones to create accountability and condition positive behaviors. Studies have shown that <\/span>publicly sharing your progress can help motivate you to accomplish your goals<\/span><\/a>. So, inform your close friends and family of your plans and ask for their support.<\/span><\/p>\n

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    1. Track what you spend<\/b><\/li>\n<\/ol>\n

      Most people know what they <\/span>should<\/span><\/i> do to improve their financial affairs. But spending less and saving more is easier said than done.\u00a0<\/span><\/p>\n

      Tracking your outgoings can help. The<\/span> 50:30:20 Rule<\/span><\/a> can keep us on the straight and narrow when it comes to spending. The rule considers your net earnings after tax (take-home pay) and states that:<\/span><\/p>\n