| So you are a young person with some extra | | | | |
| money and you don't know what to do with it, | | | | * Start a Part-Time Business: Do you want to |
| but you know you can get rich by spending it | | | | become really wealthy? Most of America's |
| wisely. Congratulations! The sooner you start | | | | wealthiest people are all business owners. |
| to investing, the sooner you will be able to | | | | Researchers claim that 1 in 10 business fail, |
| become financially free. | | | | so 9 out of 10 succeed! Why not start now at |
| | | | building your first business? Think about |
| Let's say you have a $500 - $1,000 to invest | | | | what you already do with your time and how |
| and need know the best place to put your | | | | you can turn that into a cash-generating |
| money. What you really want to know is how | | | | business that will return your money several |
| you can use that money to make more money, | | | | times over. |
| right? Unfortunately, there is not one right | | | | |
| answer, just a lot of opinions and different | | | | * CDs: A certificate of deposit is a perfect |
| advice. Before you invest, do your research, | | | | place to stash your cash if you want |
| understand that in the short term you may | | | | guaranteed returns and can afford to stash |
| lose some money, but in the long run it will | | | | your money away for relatively short periods |
| make money, and then take action. Here are | | | | of time. Depending on the interest rates, you |
| some places to start: | | | | can generally make 5 - 10 percent on your |
| | | | money in a year, but you won't be able to |
| * Stocks: Investing in individual stocks can | | | | make any withdrawals without a paying a |
| be considered a bit more risky, particularly | | | | penalty. BankRate will show you the best |
| when considering the stock type and sector. | | | | deals. |
| Penny stocks, for example, can be a great way | | | | |
| to loose all your money very quickly. High | | | | * Prosper.com: At Prosper, you get to be the |
| quality, blue chips are more likely safer | | | | banker and loan other people money at a rate |
| bets - in general. Learn to understand how | | | | you negotiate. |
| stock prices are valued and spread your risk | | | | |
| across a few stocks that you plan to own for | | | | The important thing is to just do it and get |
| a few years. A subscription to may be your | | | | started as soon as you possibly can. You will |
| greatest investment, which can help you | | | | learn more about investing by actually trying |
| understand investing and quickly screen for | | | | it yourself than by reading how to invest. If |
| the investment that is right for you. | | | | you lose some money, that is okay because |
| | | | that is to be expected. Only invest what you |
| * Mutual Funds: A mutual fund is an | | | | can afford to lose, and diversify properly by |
| investment with a financial organization that | | | | buying a mutual fund and you will minimize |
| manages a portfolio of stocks or assets. | | | | your loses. You will likely make many |
| Since mutual funds invest in a number of | | | | mistakes throughout your investing career. |
| stocks, your risk is spread and the value of | | | | Better to lose some now and gain experience |
| the fund is reflected in the performance in | | | | so when your income increases with age you |
| the securities the fund owns. Be sure to look | | | | already have the experience to turbo-charge |
| for funds that have a minimum initial | | | | your wealth. You cannot put a price tag on |
| investment that is in line with what you are | | | | experience. |
| able to spend. Consider the fees as well, | | | | |
| which can eat up your profits. A good fund to | | | | Most importantly, try to find an experienced |
| start with may be an index fund, which tracks | | | | money mentor that can help teach you the |
| one of the major stock indexes such as the | | | | basics. You will learn there are multiple |
| S&P 500. This would provide a relatively | | | | ways to make money, and you just want to find |
| safe, yet consistent return on your | | | | the one that you enjoy, understand and is |
| investment. | | | | right for you. |