How To Invest My Money: 4 Beginner Tips

Wondering “How to Invest My Money”? For beginners the idea of investing their money seems overwhelming. There are so many options out there, that you almost need a translator and personal finance manager to begin your investment venture. As tedious as it is, your future is not guaranteed, unless you do what is necessary to guarantee that your retirement security. You should consider the options for investment and make a decision that best fits your financial situation and long term goals.
 
Simple Is Sometimes Best

You can keep it simple with a high paid interest savings account. This is a good place to start as it is less confusing and gives you time to search for other investment opportunities. This is ideal for teenagers just starting out in a working environment. You can not only save your money here but you can also earn interest on your funds. Every bank has a variable interest return; you should choose the bank that has the highest investment return on your money. One thing to remember is that you will earn more interest as long as you leave the money in the account and keep adding to it, even if added slowly. You should not treat your savings account as a checking account. While using a savings account is a great way to save and invest your money, it should only be a temporary situation as you will want to put your money somewhere with a higher payback range.
 
Wall Street – Trading And Stocks

You can find a company to invest in. There are many online trading sites that you can choose form. This is a place that you can pick and choose which companies to invest in. Trades start as low as 5 dollars and go up. When you invest in a company, you are ultimately hoping that this company will do well, because when they do well, you will do well. You can also keep tabs on how the company is doing. You should do research on the market and see if you can predict how well a company is going to do or not. For instance, if the rice trade in China is wiped out, you may want to invest in companies that grow rice elsewhere as their revenue will surely skyrocket because of lessened competition. The key with this particular investment option is research and lots of it.
 
Retirement Accounts

401K – Most companies offer this investment option and they can take a pre-specified amount of money out of your paycheck each week to invest. You will see your return at retirement.

Roth IRAs – Most banks and Brokerage firms offer this investment account. There is a minimum amount and a maximum amount you can place into this account without penalties. This account is generally based on the market as well. Your money will either grow or decrease based on the stocks purchased with these funds.
 
Research

You should consider what you are able to contribute to these accounts each week or each month. You should invest only what you can afford to keep yourself from running into debt situations. You can also get burnt out on you investment method if you are not able to pay the minimum each month.
 
Choose companies that are reputable and have a history of happy customers. You can easily check for this by using your internet search engine. Never choose a new company, wait until it has had enough feedback and a proven track record.
 
Saving and investing in your future, “how to invest my money”, is easier than it seems, start small and work your way up as you learn the different options that are available, but never stop investing, the longer you invest the more stable your retirement will be.


blog comments powered by Disqus
Scottrade