I’ve had a lot of people who work at Fox and Fox Business tell me that I’ve helped them make more money than they could imagine.
I feel really good about that because that’s been my mission for decades: to help people realize their dreams. That mission drives my research business, television show and soon-to-be announced new and expanded ways that I can help you even more.
It’s also why one of the things I like doing on my show, Making Money with Charles Payne, is address some of the everyday investor’s worries. I think it’s important to shed some light on these concerns and help you move past them — or at least feel more comfortable investing despite them.
One of America’s greatest financial worries is not having enough money for retirement. I completely understand this concern.
The future is a scary thing — nobody likes not knowing what’s to come. However, there are some important things you can do right now to give yourself a little peace of mind. By preparing just a little bit every single day, you can make the process of saving for retirement — or just the future in general — a whole lot easier.
Here are three simple steps to get you started today. You may be doing none or all of them, but they’re important to mention again.
- Set up your household budget. People tell me all the time that they don’t have the money to invest, and while I understand that they may think that this is the truth, it’s usually not. Find the money, because it’s there somewhere — even if it’s just a dollar a day. By establishing a household budget, you know exactly how much money you need in order to keep the lights on and food on the table. It also means that you know exactly how much money you have left over once your bills are taken care of. Which brings us to the second step …
- Set up a savings account. Whether it’s $1 or $100, put the money left over from your budget into a savings account every month — or as often as you can — and keep doing this until you have a good cushion. Some people say you should have at least three months’ worth of bill payments saved up in your savings account, but you can determine what you believe is best for you and your family. As always, it’s extremely important that you make sure you’re comfortable with your decision.
- Set up a brokerage account. While it’s very important that you complete the first two steps before moving on to this one, I believe you should get your brokerage account set up as quickly as possible. A brokerage account is key, because without it all you’re doing is letting your money sit there and not work for you. While it won’t be losing any value, it won’t be gaining any value either with interest rates so low.
That’s where investing comes in: to get your money working to make more money. I get asked all of the time, “Where do I start investing?” There are many answers to this question, but the simplest one is this: Invest in what you know and what you see taking place around you.
Let me give you an example. Not long ago, Target Corporation (NYSE:TGT) announced that it would release a line of women’s clothing from iconic fashion brand Lilly Pulitzer of Oxford Industries Inc (NYSE:OXM).
It’s not even possible to count the number of women that went nuts over this announcement. Hundreds upon hundreds lined up at Target stores across the country to get their hands on just one article of clothing, and it took only minutes for the entire collection to sell out.
Now let me ask you this: How many of those women considered buying Target shares? Yes, it’s kind of a rhetorical question, but you get the point.
Investing legend Peter Lynch is famous for saying “buy what you know.” I agree with him, especially when it comes to new investors who are still getting comfortable. I can practically guarantee that you’ll find at least one great investing idea by simply picking your head up and taking in the world around you.
As of this writing, Charles Payne did not hold a position in any of the aforementioned securities.
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