Are you ready for the fresh new year to begin? Do you have financial goals for 2023 that focus on you making wise investments? Investments aren’t necessarily going to offer quick returns. Rather, it’s about looking ahead, being mindful of your future and playing the long game. All of that is easy enough to say, but how do you ensure that the financial moves you make are smart ones?
Here are some basic tips for investing wisely in 2023, regardless of what your goals may be. By using these tips you’ll feel much more confident to make decisions.
There are no such things as risk-free times.
The past couple of years of the pandemic has caused a lot of turmoil in stock markets. For those who don’t consider themselves much of a risk taker it may have been enough to scare you away.
The thing to remember is regardless of what 2023 brings, or any year for that matter, there is no such thing as risk-free investments. There will always be a degree of uncertainty.
Sometimes the risk is stronger than others, but it will always exist.
Waiting for the “perfect” market conditions before you invest means you’ll find yourself on the sidelines permanently. So the first tip is to be okay with taking a calculated risk. It’s part of investing and it doesn’t have to scare you away.
What about talk of a global recession in 2023?
The previous tip ties in nicely with this one as there has been much talk about a potential global economic slowdown or recession in 2023. What’s important to remember is that should a recession happen it will be different than any other in the past, so you can’t use past events to determine the future.
This recession will have been caused by very unique factors, tied to the pandemic, so there is real hope that should it occur it will be relatively mild to moderate, not last long and not cause the kind of damage past recessions have caused. Bearing that in mind, it doesn’t mean you have to run for the hills and avoid investing.
Many experts will tell you that investing in stocks during a recession is a good idea, as you can find some fabulous prices. As the markets start to rebound, the idea is that your stock will go up and you’ll make a profit.
Only invest what you can afford to lose.
Here’s a tip that people don’t always like to hear but is incredibly important. No matter what your comfort level is with investing or what your financial goals are, you only want to invest what you can afford to lose. It’s not the goal obviously, but it may be the reality. Would you be okay financially if you were to lose everything you spent? If not, then you need to cut back on your investments.
Learn the lingo and feel more comfortable.
The final tip for investing wisely in 2023 is to learn the stock market lingo so that you can feel confident making your investments – buying, trading and selling. Start with the basics and then challenge yourself to learn more, dig deeper and become more of an expert.
Once you feel more secure in the lingo and how the stock market works, you’ll be able to do such things as plan for upcoming stock splits, diversify your investments better and monitor market trends and news seamlessly.
Using all of these tips and understanding when it makes sense to take a risk means you’ll be able to invest wisely in 2023 and the years to come.