A lot of people have dreams of becoming rich, and they think they need to wait until they win the lottery or get that big inheritance in order to make it happen. But you don’t have to be born into wealth in order to become rich yourself.
In fact, you can start making money right now just by investing the money you spend on everyday things like food and gas into something with profit potentials – like stocks, bonds, or real estate. Here are 7 ways to invest your money so that you can make more money without even working harder or spending more time at work!
1) Learn about investing
One of your first steps in investing should be reading about it. This can be done through books, magazine articles, financial blogs, and online resources. Once you start learning more about investing concepts, you’ll have a better idea of where you want to invest your money—and whether or not you actually want to invest it at all. So read up! It will give you an opportunity to figure out how much work is involved in starting an investment strategy.
2) Decide what you want to do
If you’re just starting out, you have a lot of options. But it’s easy to be overwhelmed when faced with so many opportunities. The first step in getting started is figuring out what kind of investor you want to be.
3) Decide how much time you can devote
Before you get started investing, take some time to determine how much time you can devote to managing your portfolio. If it’s just an hour per week, then perhaps it makes sense for you to invest in low-cost index funds.
But if you have several hours each day or more available, consider hiring a professional financial advisor. You might also decide that a financial advisor is worth it when you start having large sums of money at stake—perhaps $50,000 or more that would make sense for investment management.
4) Get started today with savings, rewards, or side-hustle income
Savvy investors know it’s best to start with what you already have. If you already have money in your bank account or spare change in your pocket, it’s time to turn those cents into dollars. To get started investing today, here are seven ideas for ways to invest small amounts of money: . . .
5) Watch your money grow
In order to grow your money, you’ll need to deposit it into an account where it can earn interest or dividends. Don’t underestimate how important interest is when you’re talking about building wealth.
If you have $10,000 in your savings account earning 1% interest, after five years that money will be worth $10,650. But if that same account is earning 5%, after five years your $10,000 will turn into $13,598!
6) Stick with it!
Sure, some high-risk investments will pay off in spades, but for every story about someone hitting it big with a hot stock tip, there are dozens of stories about people who lost all their money trying. If you’re thinking of investing in something that has a high potential for reward—but also high risk—it’s important to have as much information as possible before making your decision.
7) Give yourself permission to make mistakes!
A lot of people hate to admit it, but making mistakes is part of learning. No one knows everything about anything, so getting into investing with open eyes—and an open mind—is key. No one likes to make mistakes, but if you’re aware that they’re bound to happen when you begin investing in stocks, you can focus on how you’ll deal with them once they arise.