In 2014, I made my first investment with $1,500. As a Georgia Tech freshman, I had an internship at the Technology Association of Georgia (TAG), a non-profit that encourages companies to relocate to Georgia. My role entailed writing and editing articles for Hub Magazine as well as planning for government events and eventually reviewing company presentations for the CEO. I saved up my $10/hour salary over several months to make my first investment.
With funds from this internship and advice from my dad on setting up a Fidelity account, I bought stock in Target (NSDQ: TGT) for around $59 per share. Target was my favorite place to grab supplies for my dorm on my budget. I especially loved the big pillows for my lofted bed and the decorative picture frames.
As I customer, I strongly believed in the company. I also saw future growth potential in their ability to increase the amount of affordable and trendy women’s fashion products. I purchased shares when I saw a price decline caused by their 2013 credit card data leak.
As we all know, Targets stock price grew immensely and is around $250 per share today. This is just one example of a great purchase at the right time; it’s not financial advise to make this specific move right now.
Making strong investments is a great way to fight inflation and maintain the value of your money. Unfortunately, it’s not enough to earn a salary and add to savings to build long-term wealth. Besides stock, I’m invested in a Roth IRA 401k and I have an active emergency fund. I am always brainstorming how to save and make my money more productive for my future.
Anyone can become an investor using any amount. I also ensure that I am not investing all my money into one company to minimize my risk. I typically invest at least $1,000 at a time to make an impact in diversifying my portfolio while minimizing purchase and sale fees.
Profits are not guaranteed because there’s always some level of risk involved. I decrease the amount of risk I’m taking on by doing the research and pursuing my diversification strategy.
Just like I would prepare for an interview: I search for all the details around the company, including but not limited to – analyzing financial statements, understanding the competition, and reading about the company’s long-term vision.
I consider upcoming trends in consumer spending and how it will change what everyday customers will want to spend their money on. The most important lesson I learned when it comes to investing – I will not spend my money on a company that I do not 100% believe in.
This strategy has proven to be successful for me. My investments helped me buy a car, plan international vacations, fund graduate school expenses, and even purchase my first house. There are many different ways you can manage your investment strategy with varying levels of risk. I’m sharing this personal story, so that you can take your finances into your own hands too. If you found this post helpful for taking control of your money, be sure to tag me on Instagram @LaunchedbyLiz when you share about it.
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Disclaimer. I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am an amateur investor. All investment strategies and investments involve risk of loss. Nothing contained in this website should be construed as investment advice; it is solely a personal story.
