When you start your investment portfolio at a young age, the interests, dividends and income from your investments will gradually accumulate. Growing your investments now also has other benefits, such as learning practical financial management skills via experience, learning from your mistakes, and recovering from them with time on your side.
To become successful at building your profitable investment portfolio, just follow these five basic steps:
- Determine your goals for investing your money (e.g., car fund, college fund, seed capital)
- Assess your possible sources of income (e.g., babysitting, crew at fast-food joints, and summer camp counselor)
- Make your financial plan (e.g., where, when, and how to invest your money)
- Start investing your money.
- Manage your investment portfolio.
Of course, you must do your research because investments are subject to risks, too.