A Beginner’s Guide to Investing

Imagine you’re in your living room, and you sit down on the couch after a long day at work. You turn the TV on, lie down, and let your hand idly rest between the cushions. But wait, what’s this? A hundred dollar bill? You wondered why your wallet felt lighter. However, you don’t particularly want to buy anything, and all the bills are paid. How can you make the most out of your newfound discovery?

Investment, of course. If you don’t have any use for money now, then let someone else use it for the likely promise of more money later. That’s how the basics of investing work. Many people get frozen up with investing, unfrotunately, because there are just so many options available.

One idea – and perhaps the simplest – is to just put the money into a savings account. Banks and credit unions offer interest on the money, and it’s definitely better than it sitting around and doing nothing. Athough interest rates are at an all-time low, and it will take some time before the rates get back up to integer values, it’s a risk-free, guaranteed option of making more money.

Another option is to put the money into a CD, also through your bank or credit union. When you have cash in one of these, you can’t touch it for a prespecified period of time. There are different time periods available, ranging from six months to (usually) up to five years. The longer you don’t need your moeny, the better interest rate you can get. These are also guaranteed, risk-free money.

If you want to gamble just a little more, you can put money into stocks or mutual funds. You can’t be guaranteed of profit, but since the market trend has always been upsloping, you’ll usually get something out of it if you can bear the swings.

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