HONOLULU (KHON2) -- Financial planning is a topic that can seem out of reach for many. This is especially true for those in Hawaiʻi who might feel like they need a large amount of money to get started. But Taylor Nakamura, a local financial advisor with Northwestern Mutual in Honolulu, said it doesn't have to be that way. With the right strategy, anyone can begin investing -- no matter how small their budget may seem. "I’ve seen people believe that they need hundreds of thousands of dollars to start investing. But that’s simply not true," Nakamura said. "Even with just $50 a week, you can begin your financial journey." Top 5 things to understand about financial planning in Hawaiʻi 1. Small investments can have big impacts Nakamura emphasized that it’s never too late to start investing. "You don’t need a large lump sum of money. If you can manage $50 a week, that's a great place to start," Nakamura explained. He noted that even something as small as $200 a month can add up over time. "You could start a Roth IRA with as little as $10 a month," he added. 2. The importance of diversification One key piece of advice Nakamura offered is to stay diversified in your investments. "What I always suggest for long-term investors is to stay well diversified," he said. "If you're diversified, statistically speaking, you have a 73 to 76% chance of profitability within a given year. If you extend that time horizon to five years, your chances increase to about 87%." Nakamura believes that sticking with a diverse portfolio is one of the most important ways to avoid losing money. "Don’t put all your eggs in one basket," he added. "That’s the surest way to fail long term." 3. The benefits of Roth IRAs When asked about how to start small, Nakamura highlighted the advantages of Roth IRAs. "Given the current climate, Roth IRAs are becoming more popular," Nakamura explained. He pointed to factors such as government spending and rising taxes as reasons why Roth IRAs are a good choice. "With a Roth IRA, you're paying taxes now, potentially at a lower rate; and then, you can withdraw tax-free later," he said. "It’s a smart way to protect your savings from future tax increases." Get Hawaii's latest morning news delivered to your inbox, sign up for News 2 You 4. Cutting unnecessary expenses to invest It's not just about how much you can invest, but also how much you can save. Nakamura recommended taking a hard look at your expenses. "Sometimes, the best way to save money for investing is to cut back on luxuries you don't need," he said. "Look at your subscription services. Are you still paying for things you don’t use, like SoundCloud or Apple Music?" Nakamura added that cutting back on unnecessary purchases at the grocery store can also help. "Don’t shop hungry," he advised. "It’s a simple tactic, but it works. People tend to buy things they don’t need when they’re hungry." 5. The power of long-term thinking Nakamura is a strong believer in thinking long term, too. "If you stay diversified and don’t sell off stocks at a loss, statistically, you won't lose money over a 15-year period," he explained. "It’s all about sticking with your plan." He emphasized that short-term market fluctuations can be overwhelming, but it’s the long-term outlook that matters most. Why diversification and a long-term strategy matter Nakamura explained that diversification is one of the key components to successful investing. "If you put all your money into one stock or asset, you’re gambling," he said. "But if you spread your money across different sectors, -- stocks, bonds, other assets -- you lower your risk." He also mentioned how important it is to avoid reacting emotionally to market fluctuations. "It’s easy to panic and sell off during tough times; but if you stick with your diversified portfolio, the chances are very high that you will come out on top in the long run," he said. When asked about the current economic climate, Nakamura said that understanding the larger picture is essential. "We’ve seen a lot of government spending, especially in the past few years, which could lead to higher taxes in the future," he noted. "That's why it’s important to have a plan in place now that will minimize the impact of future tax increases." A financial plan for everyone Taylor Nakamura’s advice is clear: no matter how much money you have, there’s always room to start investing. "You don’t need a huge amount of money to make a difference," Nakamura said. "Whether it’s $50 a week or $200 a month, it all adds up." His focus on diversification, cutting unnecessary expenses and thinking long-term offers a roadmap for anyone looking to take control of their financial future in Hawaiʻi and beyond. By starting small, staying disciplined and thinking ahead, Nakamura believes that anyone can secure a stronger financial future. Get news on the go with KHON 2GO, KHON's morning podcast, every morning at 8 "It’s not about how much you start with," he concluded, "it’s about being consistent and making smart decisions along the way." ...read more read less