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The Beginner’s Guide To Investing With an Online Checking Account

Moneymagpie Team 17th Apr 2024 No Comments

Reading Time: 3 minutes

Did you know that more than half of Americans can’t pay a surprise bill of $1,000 with their savings? 

It’s a big problem when unexpected expenses pop up. 

But there’s a way to handle these situations and even make extra money. 

In this beginner’s guide, we’ll show you how to start investing using the same account you use for everyday transactions. Let’s get started.

Understand your online checking account 

This is the first thing to do before you start investing. Your online checking account is like a digital wallet where you keep your money safe. You can put money in, take it out, and pay bills easily. Online banking lets you manage your money anytime, anywhere, using your computer or phone.

When you open an online checking account, you get tools like mobile apps and online bill pay. These tools help you see how much money you have, move money around, and pay bills without going to a bank. 

Some online checking accounts don’t have monthly fees; you might even get rewards for using certain features. So, check out your online checking account and see how it can help you manage your money better.

Explore investment options

It means checking out different ways to grow your money. Many online banks offer different investing methods, such as stocks, bonds, or mutual funds. Additionally, exchange-traded funds (ETFs) are like baskets holding many investments.

Some online banks have robots called robo-advisors that help you invest without knowing much about it. These robots use smart computer programs to determine the best way to invest your money. It’s based on your goals and how much risk you’re comfortable with. 

With all these choices, you can find the right way to invest your money and grow it—all from your online checking account.

Set investment goals 

It’s similar to drawing a map for your money journey. Goals help you know where you’re headed and keep you on track. When you set goals, ensure they’re clear, doable, and have a time frame. 

For example, instead of saying you want to “save money,” set a goal like “put aside $50,000 for a house down payment in five years.”

Consider why you’re saving and how it fits into your big picture. Are you saving for retirement, a big buy, or your kids’ education? Knowing the reason behind your goals keeps you motivated and focused. 

Also, check in on your goals regularly to make sure they still make sense. If things change, don’t be afraid to adjust them. Setting simple and doable goals helps you make smart choices and grow your money for the future.

Diversify your investments 

Don’t put all your eggs in one basket. Instead of putting all your money into just one thing, like stocks, you spread it into different investments. This way, if one investment doesn’t do well, the others can help balance it out.

By diversifying, you protect yourself from big losses and increase your chances of making money over time. It’s like having a safety net for your finances, helping you stay steady even if some of your investments go down.

Monitor your investments

With your online checking account, it’s easy to keep track of how your investments are doing. You can check on them regularly to see if they’re making money. Most online banks have tools to see all this information on your account page.

Checking your investments regularly also helps you make changes when needed. If something isn’t going well, you can adjust your investments. You may need to buy or sell investments to balance things or take advantage of good opportunities. You can make better choices about growing your money by watching your investments and keeping up with financial news.

Educate yourself

Learning about investing is vital for your financial future. Luckily, there are tons of easy-to-understand resources online. 

You can learn about investing by visiting websites, reading books, listening to podcasts, and joining online courses. These resources cover basics, strategies, and current market trends. You can also join forums or groups where people talk about investing to share ideas and learn from others.

It’s also wise to get advice from financial experts. They can give you personalized tips based on your goals and situation. Whether you’re just starting or investing for a while, having someone to guide you can make a big difference. 

Remember, investing is a journey, and the more you know, the better decisions you can make. Keep learning, and you’ll be on your way to growing your money for the future!

Investing through your online checking account offers an accessible and convenient way to grow your wealth over time. So why wait? Start investing with your online checking account today and take control of your financial destiny.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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