March
21 - 2013

Investing 101 – Get Your Feet Wet, But Don’t Lose Your Shoes

retirementplanning505_012514014037With every new generation of investors it’s important to know that everyone was a rookie at some point. This is why we decided to give you a little bit of a send off with a guide that should help you figure out how to get started in the investment world, what to invest in and how to educate yourself further. It’s simply not recommended to go ahead and invest in whatever you can before you cover the essentials.

Pre-Requisites

1.     Use Emergency Accounts – Things can go bad, therefore keeping three to six months’ worth of living expenses in an emergency account isn’t that bad of a backup plan.

2.     Take Care Of Your Debts – Again, the investment market is a volatile and unpredictable one. If you are to get into this world, and hold on to your sanity, it is wise to first take care of most your debts.

3.     Know And Control Your Spending Habits – In order to free up more of your cash, become a little more careful with how you spend your money and how you handle it in general.

4.     Polishing Up Investment Skills – As we discussed in the first paragraph – nobody was born knowing the rules of investment. These types of things take time, experience ad a lot of knowledge. Try to learn as much as you can about this particular field.

5.     Have Goals, Will Invest – Whatever you want to do with the revenue from investments, make sure you write it down. That will make it your goal and it will certainly generate a certain amount of motivation based on which you will start fueling your interest in the subject more and more.

If you want to find out more about investments, search for Fisher Investments MarketMinder on Facebook and other professional investing insights. In the meantime, let’s discuss the concept of investments.

What Types of Investments Are There?

·       The Money Market Fund – Now this is a type of mutual fund, and the good news about it is that it’s quite low-risk. The money market fund basically helps pay dividends and preserve them. Nevertheless, it’s quite a small-return investment so this will only suit you for a short period of time.

·       Bonds – Basically bonds are when you lend money to the government and you are being paid back the value of the bond itself as soon as the market matures.

·       Stocks – This is probably the most popular type of investment and it’s usually about owning a certain amount of shares in a company. Companies raise funds by sharing their stocks making it possible for them to take advantage of more liquidity. Return of invest in this case is based on how well the company plays on the stock market and your abilities as an investor to understand that particular market.

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