The Basics of Investing

Investing is about putting your money to work so that your principal (the amount you start with) increases in value. Your investments can make the difference between being able to achieve your financial goals or being forced to defer them.

Your investments include:

  • Stocks and mutual funds that invest in stocks
  • Bonds and mutual funds that invest in bonds
  • Cash and cash-equivalent investments.

The first step in investing is to define your goals. By defining your goals, you can narrow your choices to the best investment that matches your goals. The next step is to have a complete grasp on the basics. You can start by going to the library and reading magazines and newspapers. You can also find it helpful to attend investment seminars that are being sponsored by reputable financial institutions. Finally, look for a Financial Advisor that can help you pick different investments. By finding a Financial Advisor, you get the expertise you need to make important decisions in your finances.

 

Source: Morris, A Woman’s Guide to Personal Finance