Don’t worry – that hasn’t been my experience either. Investing is something many of us know we should do but it certainly isn’t easy to get started. First of all you have to learn how much you should invest, what types of investments there are, how you can even get your hands on those investments, and what a “good” rate of return is. It’s not quite as simple as opening a new bank account.
But if you’re looking to protect your future financial status and build wealth, then investing is a tool that can help tremendously – when done carefully. That’s why I’ve compiled information on investing from experts around the web. You won’t become an expert after reading this, but hopefully you will feel comfortable enough to get started and ask the right questions. Your future self will be happy you did.
Introduction to Investing
So… investing. Where to start? The best thing to do is read up on what investing really is. There are many things that can qualify as investments (such as purchasing real estate to rent out or buying commodities like gold to hold onto until they increase in value) but this post will focus on investing in the stock market. Take a look at the posts below for an introduction on what this type of investing really is.
Investing 101: Introduction (Investopedia)
5 Steps to Start Investing (Kiplinger)
Types of Investments
Once you have an idea for what investing is, the next thing to think about is what you want to invest in. There are many types of investments, but it’s probably best to talk about it in terms of expert level. If you’re a beginner, you’ll want to focus on mutual funds or index funds. If you’re at the intermediate level, you might want to focus on stocks and/or bonds. And if you’re an expert, you could look into options – although it should be mentioned that options are very risky.
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Investing 101: Types of Investments (Investopedia)
Stock Types and Their Differences Explained (The Street)
How Do Mutual Funds Work? (The Street)
Chances are if you’re reading this then you’re at the beginner’s level. There’s a lot of information to take in so congratulations on beginning the research process. Luckily, there are many resources to help beginners expand their investing wings – and tips to keep you safe as you learn. Below are some can’t miss articles if you’re new to this process.
How to Invest Wisely: Investment Advice for New Investors (Money Under 30)
Five Questions to Ask Before You Invest (Investor.gov)
Here’s How to Pick an Online Broker the Right Way (Business Insider)
Once You Get More Comfortable with Investing…
If you are past the beginner level and want to optimize your investment strategy, then you can start taking matters into your own hands. But it’s still very important to be confident that you have the knowledge before you take any potentially risky steps. Things you can do once you’re ready to take your investment strategy to the next level are check against what brokers are telling you for better accuracy and look for funds that line up with the rate of return goals you’re trying to reach. Check out these articles below to point you in the right direction.
How to Figure Rate of Return on Investments (Money Smart Life)
Focus on Categories (Kiplinger)
Investing can be extremely complicated, but it’s also an important component in building wealth. And building wealth can help ensure that you never go into debt again. So how can you explore investing without losing your money? Remember that it’s not like gambling – you can manage risk by sticking to your level and then staying on top of your research. And the most important thing is to always go with your gut. If something doesn’t feel right or seems too good to be true, run – don’t walk – away! Only you know what you’re ready for and there’s no reason to be pressured into an investment level past your understanding.