How to Invest? Here’s the Answer!
How to Invest? Here’s the Answer!
If you are like me, your answer will probably be “How to invest?” We need a regular income and that means we need a regular investment vehicle. The question is “What kind of investment vehicle?” That question is still up in the air. We can go back to basics: investments in stock and real estate are the safest investments out there.
So let’s get started. What is an investment in stocks and real estate? You need cash and you want to lock up your investment. How do you do both?
The first thing you need to understand is this: there are no special investments that are exempt from loss. If you lose your money in a bad investment, you lose it. It can’t go anywhere. If you have a savings account and you lose it all, you lose it. It’s not that those investments aren’t good for you and your family, its just that you can’t hide from the loss.
So what are some of the safe investments? Well, there are many, but a few stand out. You’ve probably heard of them: CDs or certificates of deposit. CDs stand for “Certificates of Deposit”. They are similar to savings accounts in that you can buy them, own them, and access them at any time, but there is one big difference: you need money in order to grow your certificate.
Savings accounts don’t grow with interest. You only pay interest on what you’ve already earned. CDs have a minimum deposit requirement. If you can get your money before the required minimum, you are ahead of the game. You won’t be paying taxes on your CD either.
How to invest? If you plan to grow your money over the long haul, stocks and bonds are probably the best choices. There are several types of bonds out there: government, corporate, municipal, commercial, interest-bearing, and bond-backed securities.
So, what are some of the stocks? Well, one popular stock option these days is penny stocks. You don’t need to be a financial expert to know how to invest in them. The problem is that many people are burned by the “Pump and Dump” scams, so you need to do some research. Be sure to find out about the company and the type of business before you invest.
Other types of investments are all about timing. If you can spot a good stock when it’s just about ready to rise, you could be sitting with a lot of money. How to invest? The Internet offers plenty of tools and resources to help you make those decisions.
So, now you know how to invest? You want to make sure that you know the risk/reward ratio. Always remember that you’re going to get some losses, but you want them to be few and far between. Don’t take more than the amount you invested!
How to invest? You also have to remember that you should only invest what you can afford to lose. Some investors have more money than they can really afford to lose. If you’re just starting out, start out with small amounts of money. Just don’t spend it all!
Where should I put my money? Your initial investment may seem strange or even ridiculous to you. But, if you think about it… your future income probably will as well. It is very possible to make a lot of money over the course of a year or two by investing in the right areas. Once you’re making enough money, you can branch out and make investments in other areas. You don’t need to get a loan or open a bank account – or even think about doing so!
So, how to invest? You are looking at ways to make a little money every month, maybe even a couple of hundred dollars a month. This isn’t going to be a large sum, but it is going to be the foundation for your future. It’s smart moves, but they can be small and hopefully pay off sooner than later.
It really is simple – just make smart moves. When you’re starting out, focus on just one area, like real estate for example. Learn as much as you can and figure out what the return will be. From there, you can branch out into other areas. Remember, the important thing is to never stop learning and trying new things.