How to Start Investing in 2024

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Astrid Tran 27 November, 2023 7 min read

How to Start Investing? Millionaires and billionaires rarely — maybe NEVER — leave money “lying around” as cash. Investing is one of the most effective ways to make the most of your money. So how to start investing, or how to start investing without money? Should I invest in real estate? Let's find answers to your questions about investing now.

In this article, you'll learn: 

how to start investing in 2024
How to start investing in 2024

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How to Start Investing as A Teenager?

With the popularity of the internet and the increase of online shopping and investing, teenagers are earning more money than their parents at the same age nowadays. Even before this digital era, starting investing when you are just turning to 13 or 14 isn't so out of limit, and Warren Buffett is an excellent example. Not all of us can have a sharp mind like Warren Buffet when we are just a teenager, but there is huge potential to start investing now. 

Simple as that, open a brokerage account from trusted platforms, buy stock, bonds, dividends, and focus on long-term growth. After 5-6 years, you'll be surprised that you have earned more than what you expected. 

How Much Money Do You Need to Start Investing?

Now, you might wonder how much money to start investing? There is no specific answer for that, of course if you have a lot of money, it doesn't matter. For people with average income, a good rule of thumb is taking 10-20% of your post-tax income per month for investing. If you earned $4000 per month, you can extract $400 to $800 for your investment. 

For example, investing in stocks and dividends can be a good start for long-term profits with a budget limited. But how much money you can put on investment has to meet one of the basic requirements: you have no significant amount of debt, you have your savings for your emergencies, and it is spare money, you have basic knowledge about investment, and you are ready to take risks.

how much do you need to start investing
How much do you need to start investing?

How to Start Business Without Money?

What if you don't have money? Here is the thing, you can start a business without money based on expertise and available resources. For example, affiliate marketing is popular nowadays. You have your blog, IG, Facebook, X twitter account with a large number of readers and followers, it can be a good place to put affiliate links and earn money from that without an upfront capital. Your partner will pay an amount of commission for you, it can vary, $1, $10, and more for each purchase is all possible. Sounds great, right?

How to Start Investing in The Stock Market?

Investing in the Stock market is not something new. Open a brokerage account and track the movement of stock and market trends is crazily easy with your mobile phone. Anything is online. The important thing is which brokerage supplier or dealer is the best, with low or even zero transaction fees. More importantly, how you know these stocks is good to invest in. In stock, higher risk, higher rewards. If you don't like to take risks, focuses on fixed-income assets, dividends, and ETFs of S&P 500, which are well-known companies with stable growth

Trading vs Investing Which is Better? In the stock market, there are two aspects that you should pay attention to, trading vs investing. The common question is which one is better. The answer depends. Trading is about short-term gain when you buy and sell securities quickly, to earn from price fluctuations. By contrast, Investing is about long-term profits, when you buy and hold stocks for years, even to decades for returns. It is your choice to decide which style of investment you prefer or suit your financial goals. 

How to Start Investing in Real Estate?

Real Estate is always a profitable market for investors but it also includes a lot of risks. Quickly selling a real estate asset and earning a high commission is what most people think about this industry. But the Real Estate Investment is much broader than that. 

There are many ways to make money from investing in real estate, such as appreciation, rental income, flipping properties, Real Estate Investment Trusts (REITs), crowdfunding, commercial real estate, lease options, wholesaling, and more. If you are a beginner in this field, be aware of information you get from the internet and agents, it is not always true and the probability to be fooled is high, so make sure you have enough knowledge and do research beforehand.

how to invest in real estate
How to start investing in real estate for beginners

How to Start Investing in SIP?

It is fine if you are not really familiar with the SIP concept, as it is more popular in India with significant growth in recent years. SIP stands for Systematic investment plan, a method of investing in mutual fund schemes, allowing investors to start investing with relatively small amounts of money regularly over time. It is a great choice for those who don't have enough money for a one-time investment. For example, after 12 months of consistently investing ₹1,000 per month with a 10% annual return, the total investment value would be approximately ₹13,001.39.

How to Starting Investing in Startups?

How about investing in startups? Indeed it is a very risky business. According to the latest survey, the failure rate for new startups is currently 90%, 10% of new businesses don’t survive the first year. It means for each 10 startups, there is only one success. But it doesn't make people feel less faith in startups investment. Because one succeeds, it is worth billions of dollars, Apple, Microsoft, TikTok, SpaceX, Stripe, AhaSlides, and more are excellent examples. When investing in startups, remember what Warren Buffett said: "Price is what you pay. Value is what you get", 

Key Takeaways

"Don't invest in something you don't understand", said Warren Buffett. When investing, never impulsively put your money on a business without learning about it in advance. How to start investing in the digital era begins with digging for information and insight, learning from experts, and following an entrepreneur mindset. 

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Frequently Asked Questions

How should a beginner start investing?

Here is a 7-step guide for beginner start investing:

  • Read about market trends
  • Set your investment goals
  • Decide how much you can invest
  • Open investment account
  • Consider investment strategy
  • Choose your investment business
  • Track your investment performance

Is $100 enough to start investing?

Yes, it is fine to start investing with little money. $100 is a great starting amount, but you will need to continue adding more to grow your investment.

How do I start investing when I am broke?

There are many ways to make an investment if you are at the bottom of your life. Get a job, do a side hustle job, spend some money on investing in stocks without a lot of money, such as buying fractional shares of stock and ETFs. It is long-term profits. 

Ref: Forbes | Investopedia | HBR