The 3 S’s of Simple Investing: A Sunday Read for Beginners

Investing can be a daunting prospect for beginners, with an enormous variety of possible assets to add to a portfolio. However, by following the 3 S’s of simple investing, you can get started on the right foot.

**The 1st S: ** Set your goals. What are you hoping to achieve with your investments? Are you saving for retirement? A down payment on a house? A child’s education? Once you know your goals, you can start to build a portfolio that will help you reach them.

For example, if you’re saving for retirement, you’ll want to invest in assets that are likely to grow over the long term. Stocks and bonds are two good options, but you’ll need to decide how much risk you’re comfortable with. If you’re saving for a shorter-term goal, such as a down payment on a house, you’ll want to invest in assets that are less risky, such as CDs or money market funds.

**The 2nd S: ** Start small. You don’t need to invest a lot of money to get started. Even a small amount can make a big difference over time. And, as you become more comfortable with investing, you can gradually increase your contributions.

For example, if you can only afford to invest $50 per month, that’s fine. Just make sure to set up a regular investment plan and stick to it. Over time, even small investments can add up to a significant amount of money.

**The 3rd S: ** Stay the course. The stock market is volatile, and there will be ups and downs along the way. But if you stay invested for the long term, you’re more likely to reach your goals.

For example, the stock market lost about 50% of its value in 2008. But if you had stayed invested, you would have recovered your losses and made a profit by now.

Of course, there’s no guarantee that the stock market will always go up. But over the long term, it has a good track record of generating positive returns. So, if you’re patient and stay the course, you’re more likely to reach your financial goals.

Here are some additional tips for simple investing:

• Do your research. Before you invest in anything, make sure you understand what you’re buying. Read the prospectus and do some online research to learn more about the company or fund.
• Invest in index funds or ETFs. These funds track a specific market index, such as the S&P 500. This makes them a good way to diversify your portfolio and reduce your risk.
• Rebalance your portfolio regularly. As your investments grow, you’ll need to rebalance your portfolio to make sure it still meets your goals. This involves selling some of your winners and buying more of your losers.

Following the 3 S’s of simple investing can help you get started on the right foot with your investment journey. By setting your goals, starting small, and staying the course, you can reach your financial goals and build a secure future for yourself.