Never invested, where do i start!

Hello everyone!

I'm about to turn 18 and receive an inheritance in which i would love to invest, the problem is i don't know where to start. I've seen all the you tube videos and cliche 'I was poor once but now i'm rich so give me money to teach you" but all i really want is a reliable source to learn about what to do with my money and how to be smart. I feel that there is some great knowledge in forums such as this but i'm more looking for recommendations into books or something as such that can give some really good advice on how and where to get started.

 

welcome to InvestChat ,

where to start ( sensibly )

first make a flexible plan ( you have plenty of time to get it perfect for you )

at 18 there are plenty of changes coming for you

so don't be too rattled by things that might happen in the next 10 years ( or more )

now investing involves learning and maths , so find yourself a reliable calculator and a note book to write ideas and possible targets in , you DON'T have to buy that eye-catching this week ( or month ) but DO remember it and follow it .

ALWAYS Do Your Own Research before you part with your money , some will give you biased information and others will just make mistakes ( and a few are just outright crooks )

search a guy called Warren Buffet .. he is old but has plenty of useful thoughts ( that don't require a university degree to understand ) some of those thoughts can help you

another useful spot is Investopedia

Financial Dictionary | Investopedia there is plenty on this website to learn ( and adapt to suit YOU )

by the way 'rich and poor ' are states of mind , neither are totally good or bad , but each viewpoint can help ( or hinder ) your investing

these are two concepts you should understand early , they will NOT always be perfect for you
but could be very useful when applied at the right times

Compounding

Dividend Reinvestment Plan - DRIP

books and tutorials can be good but you really need to see what you want in your future

one size does not fit all in this game

also realize ALL INVESTING INVOLVES RISK ( even money in the bank )

Risk-Free & 20% Return? More Like 100% Scam

don't think you can't be tricked , the smartest folks in investing still get caught occasionally



( this has happened before and will almost certainly happen again )

 

Motivated money - Peter Thornhill
A random walk down Wall Street - burton malkiel

Are two books I like, not everything, just a great deal.

Investing can be as complex as you want, or dead easy. A simple australian boglehead portfolio (google it) is low maintenance and takes a long term approach. Importantly you won't lose all your cash and can be totally hands off.

Think about how much you need and what your goals are. If the inheritance is significant/sufficient then why take on risk you don't need to? Over 80% of funds get beaten by their index so just buying the market makes sense.