Did you know that around 145 million people invest their money in the stock market? If you want to invest your hard earned money but are not sure where to start, you’re in the right place. We have put together this guide sharing the best ways to start investing.
Read on to learn our top investing tips.
High Yield Savings
One way to invest your money is to open up a high yield savings account. This is a great option for anyone that is not a fan of running the risk of not getting their money back.
Because online banks have a lower overhead cost, they tend to offer higher rates than what youll get at traditional banks with brick and mortar branches.
When you buy a stock it means that you own a share of that company. Although stocks give you the biggest potential return on your investment your money is exposed to the highest level of volatility.
Swing trading is a popular option for those looking to make money on almost a daily basis. Keep in mind that this is a higher risk investment but can become pretty lucrative the more experience you gain.
For those that already have a pretty diverse investment portfolio you might want to consider adding real estate to it. You can either opt to buy homes to rent them out or buy homes to flip them for more money.
If you opt to go the renting route you have to keep in mind that you have to maintain it and also deal with tenants unless you hire a property manager to deal with tenants.
Flipping a home can be lucrative if you buy low, spend money on remodeling it, and sell for more money. This just requires a bit more patience because you will still have to pay money for mortgage and utilities while renovating the home.
Certificates of Deposit
Investing in short term certificates of deposit (CDs) is another popular option for low risk investors. This is comparable to a savings account. CDs offer a fixed interest rate for a specific period of time.
During that time period you can’t touch your money or else you will have to pay a penalty for taking your money out early. This is also a good option for retirees that dont need immediate income and can afford to lock up their money for a little bit.
Keep in mind that there is a risk of the interest rate going up, but you can’t take advantage because your money is locked up.
Now You Know the Best Ways to Start Investing Your Money
As you can see there are quite a few options to start investing your money. Now you can make an informed decision if you follow our guide above on the best ways to start investing.
Make sure you keep browsing our finance section for more investing tips.