If you plan on owning a home, sending your kids off to great colleges or just wanting to create wealth for the different chapters in your life (retirement for example) this blog should be read with great attention! This is step one for a new and brighter future.
The best way to build wealth (other than working or having a huge inheritance) is to invest money at every opportunity. If you’re new to the whole idea of investing and making your money work, things aren’t too clear for the rest of the world either, you have arrived at the right place! In this blog every day we will tackle investment basics, strategies and placement of money.
The percentages of Americans who invest in the stock market come from the Gallup polling organization. In the spring of 2012 they conducted a study and the number came back as 53%, lowest since the poll was conducted in June 2002. Not everyone is cut out for investing but that doesn’t mean you shouldn’t at least dip your nose in. If you are like every other human being then saving and making money are top priorities. Investing can be scary but with the proper research and resources anyone can make a profit! I will try and keep this guide for investing simple and straight forward. No matter income, wealth or debt, investing can improve financial freedom down the road for the latter years of life.
The very first step to investing is acknowledging that saving money and cutting back on expenses is essential. The mindset that the world’s best money managers have is that nothing happens overnight. No one should rush into investing!! In most cases investing is a 3-5 year process or longer depending on the financial goals that you set. Make sure the money being put away doesn’t interfere with everyday expenses. The penalties of removing money that’s invested early can put any investor back at square one (or even worse further from obtaining their financial goals).
Investing, unless a company goes public (offered shares of ownership) or some catastrophic amount of money is poured into the business, your money will take time to grow. The time it takes for an investment to fully blossom (the amount that you eventually want to obtain) can be a zig zag road, going left, right, up and down. Don’t let this winding road scare you away! This path can be a great indicator of what the future has in store for those investments.
There are many ways to make money grow through investments, government issued bonds, and company issued bonds, ownership stock, real estate and small business. These are just to name a few but from experience; money (and a lot of it) is here for the making and taking! In later posts we will break down each investment so that you are fully aware and know which will be beneficiary or detrimental to your own goals.