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Safe Investing 101:
Getting Started with Invest Safely

Safe investing 101 isn't just the basics. It's not "take your first $1,000 and buy an index ETF" either. Even when I was first crafting this page, I was worried you might think it was just for beginners and skip it all together.

Now that we're all personally responsible for our retirement (401k plans, etc.), there's much more at stake with much less room for error.

After a few years of investing, I realized losing money is easy, whether you're a beginner or an expert. It doesn't take any special know-how. And it's easier than ever to get started...all you need to do is download an app on your phone!

So investing 101 needs to change. It needs to expand, covering the process of investing and how you can use that process to create long-term financial success.

Just in case you ARE new to the world of personal finance, investing, and money management:

Welcome!

This page is the perfect place to start your journey through my site. Hopefully, you'll be surprised, and see just how much information isn't covered by other "investing" sites.

Note: You can always find your own way around the evergreen content on Invest-Safely.com by browsing the sitemap.

What Safe Investing is NOT

Let's get honest and talk about what safe investing isn't:

Safe investing is NOT a "get rich quick" process

If you're making money hand over fist in the markets, congratulations! Enjoy it while it lasts. Based on social medial you may think otherwise, but no one makes money on every trade. Everyone has trades and/or investments that move against them and lose money now and then. The key is not losing too much when it happens (and it will happen).

Safe investing is NOT risk-free investing

There's no such thing as a risk-free investment. But there are ways to limit the risk of any investment.

Safe investing is NOT predicting the future

We can't predict...we can only prepare. So let's prepare to lose less when we're wrong and make more when we're right.

Safe investing is NOT rocket science

You don't need special training to practice safe investing. All you need is the desire to take control of your finances, and some effort.

Safe Investing 101

Now you know what it isn't. So what is safe investing?

As mentioned on the home page, safe investing is a decision making process; no more, no less.

Decision making requires more than just data and information; you need knowledge and understanding of that data and information.

It's not just a stock price or how much money you have to invest. It's knowing how to allocate your money across investments so that 1 mistake doesn't wipe you out, for example. And understanding out investments influence your personal finances...both today and tomorrow.

That's my focus; sharing the knowledge and lessons learned so that you can make better decisions...educated decisions related to your finances and your investements. Let's take a look at some of the different factors you'll need to consider.

Personal Factors

This is the "personal" part of personal finance. Remember Rule #1 - You are responsible for your financial future, because no one should care more about your money than you do!

  • Personal Finance Goals
    • What are your goals related to investing? Proper goals will focus your effort and help you streamline the selection process
  • Risk Tolerance
    • How much money are you willing to have at risk in the market?
    • How much money are you willing to have at risk in a single position?
  • Investor Type
    • What type of trader are you? Your tendencies will affect how you trade and invest.
  • Return Requirements
    • How much profit do you want to make or need to make?
  • Timeframe
    • When do you plan on using your profits (years, yearly, quarterly, monthly, etc.)?

Market Factors

After you've got a good handle on your personal situation, it's time to get the lay of the land. You now need to learn how "markets" can make or break your investments.

Money Management Factors

The third and final aspect of Safe Investing 101 is the most important, because it is the least discussed. Even though the concepts are easy to understand, they are rarely included with the "investing basics"...and I really have no idea why!