Working in the skilled trades can be a lucrative career path, but many people in these fields may not have a great deal of experience when it comes to investing in the financial markets. If you’re someone who is new to investing and looking to start building wealth for your future, there are a few key tips and strategies to keep in mind.
First and foremost, it is important to understand that investing is not a get-rich-quick scheme. Building wealth takes time, patience, and a well-thought-out plan. This is especially true for those working in the skilled trades, as many of these fields may not come with traditional benefits like a 401(k) or pension plan.
That being said, there are a variety of investment options available to those who are just starting out. Let’s take a closer look at a few key strategies that can help you get started with investing in the financial markets.
1. Start with a solid financial foundation.
Before you can start investing in the financial markets, it is essential to have a solid foundation in place. This means creating a budget, paying off high-interest debt, and building an emergency fund. Without these basics in place, you risk putting yourself in a precarious financial situation if your investments don’t pan out the way you hoped.
2. Determine your investment goals.
What are you hoping to achieve with your investments? Are you saving for a down payment on a house, or hoping to retire early? Determining your investment goals will help you make informed decisions about where to put your money and how much risk to take on.
3. Consider working with a financial advisor.
If you’re new to investing, it can be helpful to work with a financial advisor who can guide you through the process and help you make informed decisions. Look for an advisor who specializes in working with clients in your field, and who has experience with the types of investments you’re interested in.
4. Start with low-risk investments.
When you’re just starting out, it’s a good idea to begin with low-risk investments that offer steady returns. This might include things like bonds, mutual funds, or exchange-traded funds (ETFs). These types of investments may not offer the same potential for high returns as riskier investments like individual stocks, but they are generally safer and can provide a good foundation for your portfolio.
5. Diversify your portfolio.
One of the most important principles of investing is diversification. This means spreading your money across a variety of different investments, rather than putting all your eggs in one basket. Diversification can help to reduce your overall risk and ensure that your portfolio is well-balanced.
The bottom line: Investing in the financial markets can be a great way to build long-term wealth, but it is essential to have a solid foundation and a well-thought-out plan in place. By starting with low-risk investments, working with a financial advisor, and diversifying your portfolio, you can set yourself up for success and work towards achieving your financial goals.
> For one on one or group assistance with personal finance, STR recommends that you check out the following resources:
> Inaccuracies with Bureau of Labor Statistics (BLS) data: Many of our blog posts will quote BLS data. SkilledTradeRescue.com has been able to identify that data quoted specifically for Skilled Trades can be as much as 50% LOW in many USA labor markets. For more information on these inaccuracies please visit the STR national labor survey page at the link below. On this page there is a video containing the latest information at the top of the page as well as other information. If you currently work in skilled trades, PLEASE consider participating in our national labor survey.