- 1). Write out a list of your short-term and long-term goals. If you plan to use the money within the next five years, that qualifies as a short-term goal. Examples include saving up for a new car, building an emergency fund or saving for the down payment on a first home. Long-term goals are more than five years in the future, and they can include things like retirement and a college education for your children.
- 2). Evaluate your personal budget and look for ways to cut back and save. The more money you can save from your monthly income, the faster you can build your portfolio. Going over your budget with a fine-tooth comb can give you money to invest, even if you think your budget is already tight.
- 3). Contact the human resources department at your employer and ask about any workplace savings programs that are available. Depending on your employer, you might have access to a 401(k) or 403(b) plan. You might also have the opportunity to purchase company stock through an employer stock purchase plan. Taking advantage of these workplace plans can help you build a solid portfolio through payroll deduction, which can reduce the hassle associated with saving and putting money aside.
- 4). Set up an automatic monthly transfer from your bank account to one or more stock and bond mutual funds. Transferring money on a monthly basis allows you to dollar-cost average into those investments, meaning you automatically accumulate more shares when the market is falling and fewer when it is rising.
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