Getting Your Feet Wet – Begin Investing
Best to start out slowly and safely while you are learning, so that you do not lose your investment capital. If you’re eager to get your investments began, you may get started right away without having more knowledge about the stock exchange. Begin by being a conservative investor with a low risk tolerance. This will give you a way to making your money grow as you learn more about investing.
Begin with an interest having savings account. You may already have one. If you don’t, you should. A savings account may be opened at the same bank that you do your checking at – or at any other bank. A savings account should pay 2 – 4% on the money that you’ve in the account.
It’s not a lot of money – unless you’ve a million dollars in that account – but it’s a begin, and it’s money making money.
Next, invest in money market funds. This may frequently be done through your bank. These funds have greater interest payouts than typical savings accounts, but they work much the same way. These are short-run investments, so your money won’t be bound for a long time period – but again, it’s money making money.
Certificates of Deposit are as well good investments without any risk. The rates of interest on CD’s are normally higher than those of savings accounts or Money Market Funds.
You may choose the duration of your investment, and interest is paid regularly until the CD reaches due date. CD’s may be bought at your bank, and your bank will assure them against loss. When the CD reaches due date, you receive your original investment, plus the interest that the CD has earned.
If you’re just starting out, one or all of these three types of investments is the best beginning point. Again, this will allow your money to begin making money for you as you learn more about investing in other places.