Investments … 3 Things Everyone Can Do to Help Build Financial Success

Make a plan

First things first. Get your financial house in order and know how much you have saved, how much you need to save, and how much you owe. This is essential when calculating exactly how you are going to reach your goals.

Set your goals. What are you saving for? How much does it cost? And when do you need to get the money? Write down and describe these in as much detail as possible, noting any areas where you are able to be more flexible in the outcome. For example, if you are saving for your child’s college education, you may not be flexible on when you need it. However, you may be flexible on how much you need, taking into account the possibility of scholarships or loans for example. This detail will help you find a strategy that best works and moves with you as your financial picture changes throughout the years.

Start early

Start as early as you can and, if possible, save and invest for the long term. Time cannot only protect you from risk, but it is one of the most important factors in determining how much your money will grow. Investing early can also mean reaching your goals faster and with less of your money invested. Click here to read our article on Compound Interest and see for yourself the benefits of investing early.

Be smart

Do your homework! Another way to reduce risk is to investigate any person or company that you are considering doing business with.

• Call your state securities regulator to check up on the background of any person or company you’re considering doing business with.
• Find out as much as you can about any company before you invest in it. Companies that issue stock have to give important information to investors in a document called a “prospectus” and by law that information is supposed to be truthful. Always read the prospectus.
• Beware of “get rich quick schemes.” If someone offers you an especially high rate of return on an investment or pressures you to invest before you’ve had time to investigate, it’s probably a scam.

Overall, invest with professionals you trust and who have your best financial interests at heart. Make sure they have the education, tools, and certifications to best serve you.

For more information on the First South Wealth Management* team and products, click here! We would be happy to help you with your questions and investment needs.

*Securities offered by First South Wealth Management are not deposits, not FDIC insured, not guaranteed by the bank and may lose value.

SOURCE: http://investor.gov/, 2013.