Many people don’t want to invest because it seems overly complicated. But if you are wanting to build wealth, investing now is the key to success.
Where to Being Investing
There are a lot people thinking of investing there extra cash, but like most, they imagine painstakingly picking stocks, tracking their daily performance and constantly buying and selling. While this is alright for good movies or TV shows, it doesn’t necessarily work that way. Sure you could hire a financial adviser that can help do this for you, but the reality of the matter is that most financial advisers fail to beat the market. So, why pay a financial adviser your hard earned money to do something you could do on your own? (If you’re dealing with an abnormally large sum of money, though, and are a bit over your head, a good financial adviser can be a worthwhile endeavor.)
Most think that you need to be rich to begin investing your funds, but the truth is that with as little as 50 dollars you can begin putting money into investments that will get you a return. Not all investors put their money into the stock market. There are so many other ways to invest money that can even give you a greater return, some of which may be surprising for new investors. Now, the risks with each method does vary, and some methods are riskier than others. However, each does have its own varying benefits, timelines, and interest rates.
What should you Invest in?
By now you may be having doubts because you are a first time investor, don’t worry, there are several smart ways to invest without putting your money in the stock market. There are safer and equally effective way of making you money. Here are four of the safest and most profitable ways I found to invest for beginners:
- Peer-to-peer lending
- US Treasury Securities
- Mutual Funds
There are plenty of options out there – some options that will even do the investing for you. Before investing, do you homework. Check out the books The Bogleheads’ Guide to Investing (from Vanguard founder John Bogle), Investing For Dummies, and whatever else you can get your hands on from the library. I’m also a big fan of Kiplinger Magazine.