If you have some extra money saved up, it’s time to invest it. Saving money is a great thing, but if you don’t invest it as soon as possible, you risk losing it to inflation. Fortunately, there are many ways to invest that don’t require you to be the next Warren Buffet. You can even use apps to round up purchases and invest your spare change.
Investing in individual stocks is the most popular way to start growing your money. It’s time-consuming, and it’s important to do your research. It’s important to understand the risk, as buying individual stocks can yield high highs and low lows. Make sure you understand the risks involved, and don’t put all your eggs in one basket.
Before investing, think about your goal. You might have a long-term goal, such as retirement. If you need the money within five years, you won’t want to put it in the stock market. You’ll also want to make sure you maximize your employer match and max out your Roth or 401(k). Likewise, if you’re saving for retirement, it’s best to keep your money in a brokerage account or in real estate.
Once you’ve decided what you want to invest, you’ll need to decide how much you’re willing to risk. You may want to invest a small amount every month or you may want to invest a lump sum you received from an inheritance. Once you’ve decided how much you want to invest, you can choose a management approach or do-it-yourself investing.
