The 'single most important factor' for first-time investors, according to a CFP—and 3 other tips to get started

 CFP's "Single Most Important Factor" for Beginner Investors—and 3 More Tips to Get You Started

So you've decided you want to start investing. You probably have some questions.Whether you've just collected your first paycheck or are ready to let your money grow as you advance in your career, learning how and when to invest for the first time can be daunting.

Fortunately, there are some basics to help you get started. For novice investors, growing money is about playing the long game, CFP and Chief Financial Advisor Matthew Saneholtz tells CNBC Make It. "It's not timing the market, it's timing the market that's most important," he says.

To maximize your time in the market and take advantage of compound interest, it's important to start investing early, Saneholtz says. Compound interest allows your money to grow faster than simple interest because you get returns not just from the principal invested, but from the returns themselves. It's interest over interest.

Your time horizon will help you plan how you invest and the risks you are willing to take. It's the "most important" factor to consider and should be determined before you put even a dollar into the market, Saneholtz says.

“Anything under five years can be considered more of a short-term time horizon, which can affect what and how you invest,” he says. "On the other hand, if I'm investing ... and I don't plan on using it for 20 years or more, then I can be much more aggressive with my investment account."Before investing in the stock market, invest in yourself, says Saneholtz. By this he means that it is important to save enough to cover three to six months of expenses in case of an emergency.

Rather than parking that money in an investment account, a high-yield savings account is generally risk-free and will still let your money grow. They currently offer savings accounts with a high yield of around 5% APR.You can also consider putting money toward a big purchase, like a house or an engagement ring, Saneholtz says. Opt for broad-based funds over individual stocks

While picking one company to invest in — such as a hot new start-up that you think will "go far" — can be tempting for first-time investors, it's much wiser to commit to a more diversified investment approach, Saneholtz says.

"Investing is different from speculation. Don't let your emotions get in the way of investing," he says. "Investing means setting a plan and letting the plan work for you. Speculating means buying crypto, one stock, or some small company that you think will take off."Instead, "it's better to buy a basket of companies where you're buying the economy than trying to pick a single stock."

Saneholtz recommends investing in broadly based exchange-traded funds. EFTs consist of multiple assets, including stocks and bonds, allowing investors to buy into a broader portfolio with a single purchase. They typically have lower fees than actively managed funds and allow investors to instantly diversify their investment portfolios, reducing their risk.

"I've seen people get into trouble when they first try to pick individual stocks," Saneholtz says. "There are so many different variables for a business to become profitable, stay profitable, and achieve and win its industry."

While it may be tempting to invest in buzzy companies, "when I first got my toes in the water, I would choose a broad-based type of fund that owns many different companies in many different industries," he adds. Be patient

Once you invest in your first fund, "slow and steady" is the best strategy, Saneholtz says. While it can be tempting to sell your investment once its value drops, if you're properly diversified, it's often better to ride out market volatility."Let the market work and grow for you," says Saneholtz. "If you want to grow, slow and steady wins the race."

Dollar cost averaging, a strategy in which you regularly invest the same amount of money, can help you weather the ups and downs of the market.When you hear on the news how the economy is affecting the market, "don't always react," Saneholtz says. "Be prepared to invest for the long term."

DON'T MISS: Want to be smarter and more successful with your money, work and life? Subscribe to our new newsletter!Get Warren Buffett's free guide to investing from CNBC, which includes the #1 billionaire's best advice for regular investors, dos and don'ts, and three investment principles in a clear and simple guide.Are you a first-time investor and eager to dive into the world of financial growth? It's an exciting journey that can lead to a secure future, but it's important to approach it with knowledge and strategy. According to Certified Financial Planners (CFPs), there is one factor that stands out as the cornerstone of successful investing for beginners – diversification. Let's explore this vital factor along with three other essential tips to get you started on your investment journey.

 Diversification: The Basics of First Time Investing

Diversification is the practice of spreading your investments across different asset classes such as stocks, bonds, real estate and commodities. This strategy reduces risk by preventing your portfolio from becoming too dependent on the performance of a single investment. A well-diversified portfolio can help you ride out market swings and achieve more consistent long-term returns.

As a first time investor, prioritize diversification. This means not putting all your funds into one stock or asset. Instead, consider spreading your investments across different sectors and asset types. Mutual funds or exchange-traded funds (ETFs) can be excellent tools for achieving instant diversification because they combine multiple investments into one.

 Set clear financial goals

Before you start investing, it is essential to define your financial goals. Are you investing for retirement, a major purchase, or simply to grow your wealth over time? Setting clear and specific goals will help you determine your risk tolerance and investment horizon.

Different goals may require different investment strategies. For long-term goals like retirement, you can afford to take more risks, while short-term goals may require a more conservative approach. Align your investments with your goals to ensure your portfolio is designed to achieve what matters most to you. Educate yourself

Knowledge is power in the world of investing. While you may not become a financial expert overnight, it is important to have a basic understanding of investment concepts. Learn about key concepts such as compound interest, risk and market volatility.

In addition, stay informed about current market trends and economic conditions. Reading reputable financial reports, following market experts and exploring educational resources can help you make informed decisions about your investments.

Start small and stay patient

As a first-time investor, it's important to start small and gradually increase your investments as you feel more comfortable and confident. This approach allows you to learn from your experiences without exposing yourself to excessive risk.

Patience is another virtue to embrace. Investing is a long-term endeavor and it is normal for the market to fluctuate during the process. Avoid impulsive decisions based on short-term movements. Focus on your goals and be patient, give your investments time to grow.

In conclusion, according to the CFP, diversification is the most important factor for first-time investors. Combine this basic strategy with clear financial goals, education, and a patient attitude, and you'll be on your way to investing success. Remember, it's never too late to start, but the sooner you start, the more time your investments will have to work in your favor.