Carpe Diem

July 21, 2007

Investment Tips for Beginners

From the page www.associatedcontent.com

Ever wanted to start investing your money, but didn’t know how to go about it? Did you try to do some research, but found the information hard to understand? Here are some simple tips in plain English to help the beginner investor get started:

1. Pay Yourself First. The biggest mistake Americans make is not paying themselves before they pay their bills. If you don’t pay yourself first, you probably won’t at all. Start saving 10% of your paycheck each week so you can have some money to invest. It may not seem like much at first, but you have to start some where.

2. Be Divested. In other words, diversify. Make sure you have some money that you can get your hands on quickly in case of emergency. This is called short term investing. You also want some money in long term stocks. Stocks have the chance of making the highest interest. With stocks you always have the chance of losing your money. That is why you need to be balanced. So place some of your money in short term investments and some in long term investments.

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3. Don’t ever invest money you can’t afford to lose. Stocks are risky business. It’s better that you go in to investing with this knowledge so you are not disappointed if things go sour. This is especially important in the beginning, while you are still learning.

4. Start learning online. It is much easier to buy and sell at home now then it use to be twenty years ago. You can also save yourself a lot of money. You may pay $7.00 online to trade verses the $40.00 you’d pay a broker. Be smart about it. Start taking online courses and follow them. There are even online games so you can see what would happen first before you actually spend your hard earned money. It’s kind of like a virtual game if you will.

5. Stick with well traded companies. You don’t want to start out with an unknown company that ends up going belly up and leaving you high and dry. You can minimize your risk by sticking with companies that have been around for awhile.

6. Look in to owning foreign currencies. The American dollar value is dropping and will continue to do so for quite some time. There are websites which can compare currencies and their values for you. Try doing a search with one of your favorite search engines.

7. Invest in Real Estate. Real Estate is probably one of the easiest ways for someone to begin investing their money. First you could buy a property to rent out. The tenant income will pay for the property and you can always sell it ahead of time if you need to. Second, you can purchase a little fixer upper, fix it up, and sell it for a profit. Contact your local Real Estate agent to find out what is available and get a list of all your options.

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