Getting started in investing your money takes some planning and research to understand the amount of returns that your invested money can give you. Not every person builds wealth overnight. You may have money leftover every month after paying your living expenses and are tired of your money sitting and doing nothing for you. Some of the most famous investors started with little to no money that grew into a large fortune with smart investment decisions. You can learn the ways to emulate these successes and begin creating wealth.
Popular Investments for Beginning Investors
• 401(k) Retirement Account
• High Yield Money Market Accounts
• Treasury Bonds
• Mutual Funds
• Gold and Silver ETFs
• Direct Stock Purchase Plans
• Index Funds
• Foreign and Domestic Currencies
• IRA or Roth IRA
What to Do Before You Start to Invest
Learning where to invest your money is important for minimizing your risk versus reward. Having the money you need to invest is completely different. If you are plagued with debt, it is unlikely that you will have money available to begin investing. Before you select an investment to make, make sure that you are free of debt or other restrictions. This will cause no financial interruptions in your investing practices.
Select a Comfortable Investment Amount
Without putting your personal standard of living at risk, you must determine an amount that you can contribute to your investments each month. Reducing money spent on leisure activities and useless spending will allow you to save more money to invest. When you know how much money you can truthfully invest, you can begin to create a plan that will increase your wealth.
Example investment amounts after living expenses and emergency savings are retained:
• $400 Monthly
• $700 Monthly
• $450 Biweekly
You may or may not have amounts close to these funds available every month, but that does not mean you cannot begin investing with what you have available. Any amount invested correctly will help you achieve more wealth.
Advanced Investment Techniques
Growing your wealth with a 401(k) that is matched by your employer or contributing to a Roth IRA provides you with more investment flexibility and a chance for higher returns. Converting these accounts to a self-directed account gives you the ability to invest in real estate, mortgages, tax liens and other property related investments that are proven ways to earn higher returns.
