It may take a while to get started with its stock savings, but you will thank yourself in the future for taking hold. You don’t have to worry about it, buy shares for long-term savings. The important thing is that you take the first step. Do not worry about making mistakes, if you are young you should rather try to make as many mistakes as you can to learn.
Lessons will certainly cost you money, but that cost is low compared to making the same mistake when you are older and have a larger portfolio of shares. Many people do not start with a share saving and miss out on a potentially high return in the future.
Before you start buying shares in companies, it is important that you keep track of what you are buying. You need to read some and get acquainted with the business and how they make money. There is basically no limit to how much you can read about whether a company is preparing for an investment. The more you know, the better. An easy way to start buying shares is to invest in investment companies.
An investment company is a company that invests in other companies, you can look like a fund. This provides a good diversification and a good basis for equity savings. You want to build a broad portfolio of holdings from several different industries and companies to avoid major risks. Do not put all eggs in the same basket.
Buying shares has never been easier and cheaper than it is today
Buying shares has never been easier and cheaper than it is today. Avanza and Nordnet and have accounts where you can buy shares without commission up to SEK 50,000 and 80,000 respectively. It is thus completely free for small savers to get started buying shares. Price pressure continues in Sweden and will probably become even cheaper in the future.
When opening an account at a bank, you can usually choose between Equity & Fund Account, Investment Savings Account or Equity Insurance. Everyone has their pros and cons but for the vast majority, an Investment Savings Account is the best choice. There is much more to read about equities, but to finish this quick review, you should get some tips. Share savers have seven golden rules regarding share savings, which is a good checklist.
Equity Savings Golden Rules
- Set goals for your equity savings – be long term
- Invest regularly
- Control the risks
- Be careful about borrowing
- Stay well informed and do not follow advice uncritically
- Do your own analysis
- Set rules for when to relocate