In addition to saving, investing can help you reach long-term financial goals by allowing your money to grow and potentially generate additional income. But investing can also involve risk, and it’s important to understand how that risk works in order to make smart choices. Learn More About Investing
Getting started with investing can be daunting for beginners, with the investment landscape constantly changing and offering a wide array of options that might not necessarily fit your personal situation or needs. That’s why it’s important to focus on the basics, like setting clear investment goals and understanding how the stock market works.
Once you’ve nailed those basics, you can expand your knowledge by learning about different types of investments, including bonds, stocks, mutual funds and exchange-traded products (ETFs). You’ll also want to understand how to diversify your portfolio across different asset classes to reduce the risk of losses while maximizing potential returns.
The Investopedia Guide to Learn More About Investing
It’s also helpful to familiarize yourself with the terms and definitions of some investing concepts, such as the difference between savings and investments and how fees impact your overall return. You may also want to consider what type of investing account might be right for you — a brokerage or retirement account, for example — and whether it makes sense to work with an in-person or online advisor. Finally, keep up to date with the news by checking out investment-focused TV networks, such as CNBC or Bloomberg, for daily finance information.
