Updated by Tolu
Figure out your investment goals
With investments, the ultimate goal is to make (or not lose) money but our specific goals may vary. You may be investing so your money doesn’t lose value due to inflation, to make large returns or to get passive income.
- If you’re looking for income, then your best bet is to invest in companies that issue out dividends & have good dividend yields.
- If you’re looking to build wealth, then you probably have a higher risk appetite & can invest in promising startups.
- If you’re looking to preserve your money, then you probably have a lower risk appetite and may be interested in more stable companies that already make steady profits.
Whether you have one or more of these goals, the most important thing is to identify them and diversify your portfolio accordingly.