if you are new to the investment world, beginning your financial journey can be quite intimidating. It’s important to be prepared for your future to live a comfortable and stress-free life. This article highlights 9 investment tips shared by experts who are new to financial planning.


1. Assess the expenses incurred by you currently

Keeping your current lifestyle in mind, it is important to assess your current living expenses before drafting a financial plan. This is because experts believe that it is difficult to make incremental changes without comprehending your current financial position.

2. Keep a list of your monthly expenses

Documenting your monthly expenses is way more important than you might realize. Layout all your expenses, including but not limited to – mortgage, food, utilities, insurance, dining out, shopping, trips, etc. Add all these expenses for a month to evaluate your monthly expenses. Continue this exercise for a few months, and then find out your average monthly expenses—basis your current income level, payout the highest interest-rate debts.

3. Bird’s eye approach towards your finances

Gather all your bills and accounts to get an overall picture of your finances. By tracking your expenses and keeping your assets and debts in one place, you would be able to make more informed investment decisions and make necessary changes as and when required.

4. Keep a rolling budget and forecast

Adopting this approach will keep you in a healthy position during positive and negative fluctuations in the market – that are bound to happen. It’s important to keep your budget adjustable as it is impossible to foresee all financial obstacles that might happen in the future.

5. Balance your short-term and long-term financial goals

As an investor, you must balance your short-term and long-term financial goals, especially if you are a new investor. While you might be tempted to focus on your short-term goals, it is equally important to fixate your long-term financial goals. This will help you be prepared for your future.

6. Try to follow the 50*30*20 rule

Several experts advise new investors to follow the 50-30-20 rule. This rule is simple and easy to follow. You must save at least 50% of your after-tax income on necessities such as utility bills, mortgage, rent, house loans, etc. You must save and invest at least 30% of your income in different types of investment basis your goals. The rest, 20%, can be used to spend on items that you desire.

7. If possible, you must set separate bank accounts

Your salary account can be used for day-to-day monthly expenses. This is where the bulk of your salary or income must go. You can also auto debit your recurring bills in this account. The next account should store the extra money or bonus you might receive for a significant expense or any contingencies. You can also have a third account from where you can pull out cash every week.

8. Invest for your future

It is essential to pay yourself first. You must focus on cutting your unnecessary expenses and using that savings to invest towards your retirement corpus. You might also look for ways to generate wealth and grow your income.

9. Your emergency corpus must be in place

It is essential to have an emergency fund in place for a rainy day. Experts advise saving at least three to six months of your living expenses. You can invest these funds in liquid instruments such as savings schemes, liquid funds, etc. Emergency funds will help you to pay out big expenses or help you get out of unforeseen circumstances.

John R. Wright
Social media ninja. Freelance web trailblazer. Extreme problem solver. Music fanatic. Spent several months marketing pubic lice in the financial sector. Spent 2002-2008 supervising the production of ice cream in Africa. Had some great experience developing robotic shrimp in the aftermarket. Spent several years getting my feet wet with puppets in Miami, FL. Was quite successful at supervising the production of corncob pipes worldwide. What gets me going now is working with electric trains in Mexico.