There are many hurdles to reaching your financial goals, but smart saving and investing don’t have to be one of them. Keep reading to learn the basics of investing and how to get started.

Start Early and Be Consistent

The key to smart saving and investing is to ensure your money has time to grow. To reach your financial goals compound interest is your best friend. To get the full benefit of compound interest you need to have your money invested for a substantial amount of time.

If you haven’t started yet, don’t feel discouraged it’s never too late to start investing for your future!

Along with starting early, it is important to be consistent. You will not see the type of returns you want if you only invest occasionally. Setting up auto-payments or systematic investment plans (SIPs) is a great way to ensure that you consistently work toward your goals.

Goals, Risk Tolerance & Research

When starting your smart saving and investing journey, you must create a plan first.

• What are you saving for? What is the end goal?
• How much money do you have to fund the investments?
• What is your threshold for risk? How much loss can you sustain?

After you create your plan, do your research. Learn the basics of investments and stay up to date on financial news.

Be Diverse and Keep Track

To help lower your risk, it is important to have a diverse portfolio. If the market is unstable, having your money in a diverse set of investments can help lower risk and potential losses.

Once your investments are diversified, keep track of how they are doing. This allows you to adjust your strategy and better achieve your goals.

Should you have a Financial Advisor?

If this all seems like a bit much to handle, seek the help of a professional. Reach out to Kristin Chim (Certified Fund Specialist Financial Advisor) at our Prior Lake branch or 952-445-0888, ext 719.

Check out these quizzes and worksheet below to get started on your investment journey!

Investment Calculator

Learn how your return is impacted by increasing your investment. This calculator shows you how altering your investment by two or three percent in a few years makes a big difference to your overall investment: Try the investment calculator at MoneyEdu.

Create SMART Savings Goals

Check out this fillable worksheet from the Consumer Financial Protection Bureau to figure out your goals so you can actually achieve them.

Quiz your investment knowledge in these quizzes

https://www.investor.gov/additional-resources/spotlight/investing-quizzes/september-2022-quiz

https://www.investor.gov/additional-resources/spotlight/investing-quizzes/january-2023-quiz