Learning About Finance Topics

Factors to Consider When Choosing Your Investments

by Laurie Washington

If you are going into the investing world for the first time, you may be wondering what to do about where to invest and how much to invest in certain things. There are many factors to consider when you are choosing your initial investments. Get to know some of these factors you should be considering in your investment endeavors. Then, you can be sure you are doing what is best for your financial future when you make those first few investments. 

How Much You Can Invest

One of the biggest factors to consider when you are choosing investments for yourself is how much you can afford to invest in the markets. You may like a particular company or stock, but if the price is way outside of your allotted money for investments, you will likely have to go with another option. 

Do not over-invest when you first start out with the investing process. Before you even start looking at potential investment opportunities, set aside a specific amount you intend to invest. Set a monthly amount you will be adding to your investments. This will all help you better choose your investments and ensure that you do not over-extend yourself financially when you are first starting this process. 

If a Company Is Socially Responsible

Another major factor to consider when you are choosing your investments is whether or not a company is socially responsible. Socially responsible investments are a great way to go if you are a person that cares deeply about environmental and/or humanitarian causes. 

Socially responsible investments are investments in those companies that are determined to make a positive impact. They take steps to offset their carbon footprint. They have environmentally friendly products and/or policies. They treat their factory workers and other suppliers with dignity and respect. Their corporate policies are transparent and are ethical and support equality in the workplace.

All of these issues put together make for socially responsible investments. So, if this is important to you, you can work with a socially responsible investment advisor or research the companies you are investing in yourself to ensure that you are making the most socially responsible investments possible. 

Your Religious Beliefs or Standards

If you are a religious person, you may also want to consider your religious beliefs when choosing your investments. In this case, investing in certain mutual funds may not be a good idea for you because some of the companies may be proponents or even providers services that you might not agree with or go against your company's standards.  

If these issues are important to your standards, you want to be careful about your investments. You can work with an investment advisor to help you choose mutual funds that do not contradict your beliefs or you could also stick with investing in individual companies that match and support your beliefs.

Now that you know a few of the factors to consider when choosing your investments, you can be sure you are making the right investment choices for yourself going forward.