5 Things to Know Before You Start Investing

Investing is a powerful way to build wealth, but before you jump in, it’s important to understand the fundamentals. Here are five essential things you should know before you start investing and how platforms like Sidepocket can help you navigate your financial journey.

Sidepocket Inc

1/31/2025

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1. Understand Your Investment Goals

Before investing, define what you want to achieve. Are you saving for retirement, a home, or financial independence? Your goals will determine:

The types of investments you should consider.
Your risk tolerance and time horizon.
The best investment strategy to match your needs.

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2. Diversification is Key

Putting all your money into one stock or asset class is risky. A well-diversified portfolio spreads risk across different assets, such as:

Stocks: High growth potential but volatile.
Bonds: Stability and income generation.
ETFs and Mutual Funds: Easy diversification.
Real Estate & Commodities: Alternative investments for balance.

Sidepocket simplifies diversification with pre-built portfolios tailored to different risk levels.

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3. Start with What You Can Afford

Many beginners think they need a large sum to invest, but you can start small. Consider:

Investing a percentage of your income regularly.
Using dollar-cost averaging to reduce market timing risks.
Choosing low-cost index funds to maximize returns.

Sidepocket offers low-barrier investment options, making it easy to begin with as little as $100.

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4. Understand Risk and Reward

Every investment carries risk, but understanding it helps you make informed decisions. Consider:

Higher risk = Higher potential reward (e.g., stocks, crypto).
Lower risk = Lower but stable returns (e.g., bonds, fixed-income assets).
Your time horizon matters: Longer investment periods can absorb short-term volatility.

With Sidepocket, you can adjust your risk exposure based on your financial goals.

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5. Stay Consistent and Be Patient

Investing isn’t about quick riches—it’s a long-term game. Key habits to build wealth include:

Making consistent contributions.
Reinvesting dividends and earnings.
Avoiding emotional decisions during market fluctuations.

Sidepocket’s automated investing ensures you stay on track, taking the guesswork out of managing your portfolio.

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Get Started Today

Now that you know the basics, you’re ready to start your investing journey. Sidepocket makes it easy to build a diversified, goal-oriented portfolio with minimal effort.

Ready to take control of your financial future? Sign up for Sidepocket today and start investing with confidence.

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Investing with an Irregular Income: A Freelancer’s Guide

Freelancing offers a thrilling blend of independence, flexibility, and creative freedom, making it an appealing career choice for millions worldwide. But alongside these perks comes a significant challenge: managing finances with an irregular income. Without the predictability of a steady paycheck, freelancers often face uncertainty in budgeting, saving, and investing.

11/30/2024

How To Set Up a Low-Risk Portfolio for Retirement

Retirement planning is one of the most important financial goals you’ll face. Whether you’re nearing retirement or just starting to plan, setting up a low-risk portfolio can provide the financial security and steady growth needed for your golden years. Thanks to automated investment platforms like Sidepocket, creating and managing a low-risk retirement portfolio is easier and more efficient than ever. Here’s a step-by-step guide to help you build a portfolio that minimizes risk while maximizing your peace of mind.

12/25/2024

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