6 Things You Must Know Before Starting Your Investment Journey

Investing can feel intimidating, especially if you’re just starting out. Many people assume you need huge sums of money, deep financial knowledge, or years of experience before taking the plunge. The truth? You can begin with what you have today, as long as you’re armed with the right mindset and approach.

Recently, finance experts shared valuable insights on how anyone—especially women who often prioritize saving—can shift from simply storing money to building lasting wealth. Here are six important things to know before you start your investment journey.

1. Shift Your Mindset

Investing begins with a change in perspective. It’s not just about surviving today; it’s about securing your future. Retirement may seem far away, but the best time to plan for it is now. Setting aside money for investments ensures you don’t depend solely on your salary or savings later in life.

As one expert explained, “It’s important to enjoy life today, but also to prepare for the years ahead. Having an extra source of income helps cushion those rainy days.”

2. Understand the Difference Between Saving and Investing

Saving is a great habit, but it has its limits—especially when inflation eats into the value of money over time. Investing, on the other hand, puts your money to work. It allows you to grow wealth passively while safeguarding your future.

Think of it this way: when you save, you’re holding money. When you invest, your money is out there making more money for you.

3. You Don’t Need a Lot to Start

One of the biggest misconceptions about investing is that it’s reserved for the wealthy. In reality, you can begin with as little as ₦1,000 or ₦5,000, depending on the platform. Some international platforms even let you start with as little as $10.

What matters most isn’t the size of your initial investment, but starting early and being consistent. Small amounts invested regularly can grow significantly over time through compounding.

4. Know Your Risk Appetite

Every investment carries some level of risk. Understanding your comfort level with risk is essential before committing your money.

High-risk investments can bring higher rewards, but they also come with greater chances of loss. Low-risk options, such as government bonds and mutual funds, offer more stability. The right choice depends on your goals, personality, and financial situation.

As one expert put it: “Sometimes investments go bad, but that doesn’t always mean fraud. It’s just part of the process.”

5. Explore Your Options

Once you know your risk tolerance, it’s time to choose the right opportunities. Beginners are often advised to start with safer, low-risk investments like treasury bills, money market funds, or mutual funds. As you gain experience and confidence, you can move into riskier assets like ETFs, stocks, or real estate. The key is to stay informed. Monitoring your investments teaches you how money grows, giving you both financial knowledge and discipline.

6. Make Investing a Habit

The most successful investors don’t treat investing as a one-off activity. They consistently put money aside, reinvest returns, and allow their wealth to compound over time. This also means improving your earning power—whether through career growth, side hustles, or building in-demand skills—so you have more to invest. Ultimately, the goal is financial independence, which gives you the freedom to make choices without being trapped by financial pressure.

As one finance professional explained: “Financial independence doesn’t mean you’ll stop working. It means you’ll have the option to take breaks, pursue your passions, or say no to opportunities that don’t serve you.”

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