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