Ever wanted to invest but thought, “I don’t have enough money”. Actually, you do. Chances are you have $100 and that is all you need, really. Instead of stashing your cash in your sock drawer, invest it in a mutual fund. Over time, the money increases. So, the more you invest—smart—the money you’ll make.
HOW DOES INVESTMENT WORK?
In laymen’s terms, investing is making your money work for you. Here are the different types of investments.
Investing in a bond is essentially investing in a government or company. You are in simple terms, a lender. So they pay back in the form principal plus interest. This is considered to be safer and will yield a lower return than stocks.
This is probably the trickiest; there are more risks of well, losing all your money. On the other hand, you are buying a piece of a company, i.e, you become part owner. Don’t get excited; you won’t be in board meetings just yet. The more stocks you buy, the more important you become to the company and of course, more money, duh!
When investing in mutual funds, you are investing in a group of stocks and/or bonds; and own a piece of all the stocks and bonds in that particular fund.
Since you are just starting out, you can do a lot the work can be done on your own with the help of technology and online tools. As your money increases, you can get a professional to handle your portfolio for you.
Investing is a great idea so get on with it already!