Working from home can seem like a dream career.
Work whenever you want even in your pajamas. But then reality sets in and you realize that you no longer have a steady paycheck coming in. Learning how to invest becomes even more important to help increase your income potential.
When running a home Internet business, don’t ever take your eye off the long-term goal, being able to stay financially ahead of the game.
In the ideal situation, you would begin investing long before you quit your job to establish your own home business. That way, you have a regular income even as you work to get your career started.
However, if this wasn’t the case and you are already a business owner, you can still begin investing to help sustain you during the early days of your business.
Here are 5 simple investment tips for beginners:
• Start with your 401k – Even though you no longer have a traditional 401k plan through your employer, it is important to plan for the future so you can retire someday. There are several options for business owners, including an IRA plan.
• Diversify your investments – Don’t invest all of your money in one type of investment. Put some away in conservative options and also consider some more risky ventures, but only if you can afford to lose the money.
• Budget in investment money – Don’t wait until you are rich to begin investing. Take a few dollars every time you have extra and put it in a CD or money market account. While this won’t allow you to retire in the next few years, it helps you get in the habit of investing and make your money work for you.
• Work with a fund – If you don’t have time or the inclination to learn about investments, work with a broker you can trust. This doesn’t mean you give the person your money and forget about it though. Make sure you get involved and know what your money is doing for you.
• Invest regularly – Just like with savings, you must make it a priority to put money aside for investing. It can’t be an afterthought or you will never do it.
Invest in Your Company
Part of your investment money should go back into your own business.
What better way to invest your money than in expanding your company and helping it to grow and excel. Look at your business plan and figure out where your money will work best for you.
It can be all too easy to become complacent with your business if it is doing well and just let it follow the status quo.
However, if you want your company to continue to do well and grow, you must work on areas to advance it.
Investing your money becomes even more important when you don’t have a steady income that you can count on.
This is the way you achieve financial independence and help your business to become a success for the long term.
Investing is not just for those with plenty of money; it is for those who hope to reach that status someday.
Photo credit: Image courtesy of Stuart Miles / FreeDigitalPhotos.net
About the Author: Joyce Morse is an author who writes on a variety of topics, including personal finance and investing.